Liverpool property: how to negotiate with buy-to-let investors
by Housesimple on 5th May 2018
Liverpool has recently been named the best place in Britain for buy-to-let investors, with net rental yields coming in at a whopping 8%. Of course, that's just an average: in the L7 postcode, rental yields can be as high as 12.6%.
Considering the next level down is Nottingham at 5.6%, it's no wonder investors are packing their portfolios with Liverpool properties. This means that, if you’re selling a Liverpool home, you're more than likely to garner interest from these business-focussed potential investors. To prepare, you’ll need to change your selling tactics a little – here are a few tips to get you started.
Understand it's purely business
Because investors are hunting for homes that they're not actually going to live in, they have a slightly different approach than regular buyers. Equally, because it's a business decision, they're more likely to take a hard stance during negotiation. Even if you already know how to negotiate like a pro, it's worth doing some homework before going head-to-head with a buy-to-let investor.
Know your home's worth
It's a safe bet that the buyer has already researched rental prices in your area. Having the same information as they do will put you in a better position when it's time to negotiate. Check out rental properties of a similar size to yours on Rightmove and Zoopla to see what the local market rate is. It's also worth hopping on Airbnb to see the nightly rental price – and how full the calendars are. Knowing how much the investor is set to make in buying your home will put you in a stronger position.
Compromise on furnishings, not price
There's usually a bit of give and take on each side during a negotiation. Throwing in furniture or white goods can help to sweeten the deal for buy-to-let investors as it may make things easier if they're looking to get tenants in quickly. However, you shouldn't make too many concessions. If you know what your home is worth – based on the expert valuation and your own research into local rental prices – there's no reason to take a lower offer than you deserve.
Don't be afraid to walk away
Investors are thinking about profit margins, not staking a claim on their dream home. If they have their heart set on a certain price, it's unlikely they'll move far on their offer. If the price they're offering is too low and you're unhappy with it, politely say no – there are plenty more fish in the sea, after all.