Empty House: Sell or Rent?

meg00

Hi Andy,
Are you using an Estate Agent?
If so look at the number of viewings you have had and if they are not enough, change your agent - or look again at the selling price, then change your agent. If you think the viewings are okay, look at equivalent properties, (and I mean look! - go and veiw them!) then see how yours compare. Enlist your family and friends to give the property a critical once over, maybe a few quid spent could entice a buyer.
Good Luck.
MeG

andysuth

Renter Girl,

I'd have to use a rental agent as I'm quite a distance away now. I'm guessing that would eat about 10% of rent(?).

I've been a renter myself, in house shares and know not everyone looks after the properties they rent like I did.

All things being equal I would much rather sell, but not entirely convinced it's worth "Giving it away".

Mary & NiceGuy,

I've been trying to sell through two separate agents, I think the first one lacked basic skills of the trade (or feigned ignorance of what they were doing wrong), and the second one has been disadvantaged by their sales photos being of empty house in November.

Selling price has only been reduced a week, so I am seeing if that helps.

Both agents were "confident" the house would achieve the asking price quickly, and in both cases the price wasn't the highest valuation they (or their competitors) gave.

Thanks for the input.

-AS

zappahey

marygraham54 wrote: »

Hi Andy,
Are you using an Estate Agent?
If so look at the number of viewings you have had and if they are not enough, change your agent - or look again at the selling price, then change your agent.

So, what's the rationale for changing the agent?

We're looking to buy at the moment and, as far as viewings go, it doesn't matter which agent a house is on with so long as it's on Rightmove. If it's there, it ticks our boxes and is realistically priced, we'll go and view it.

I don't understand how changing the agent will increase the number of viewings, though I can see how the agent might influence the number and level of offers.

Quite simply, there are not enough people out there who are able and willing to buy and they will gravitate towards the top quality and/or competitively priced houses. If neither of those boxes are ticked then there won't be many viewings.

As a buyer, seeing a house move from agent to agent signals an unrealistic seller and, if we were interested, we would have viewed it already anyway.

00ec25

andysuth wrote: »

Net Return = (Rental - (Agency fees + Costs + BTLMortgage Interest)) / (Property Price - Outstanding Mortgage) x 100%

as you are comoparing the financial return against ISAs then you also need to allow for Income Tax on the rental profit to get a truely comparable net return

tc9604

andysuth wrote: »

Hi,
Any tips, either way (or borderline insulting) are welcome.

I think council tax should be doubled for empty properties, using up space and services where other people could be living...

But anyhow if you're going to sell do it sooner rather than later, prices are only going to carry on sliding (as witnessed by the fact that no-one else now thinks your house is worth as much as you do).

niceguyed

andysuth wrote: »

Renter Girl,

I'd have to use a rental agent as I'm quite a distance away now. I'm guessing that would eat about 10% of rent(?).

I've been a renter myself, in house shares and know not everyone looks after the properties they rent like I did.

All things being equal I would much rather sell, but not entirely convinced it's worth "Giving it away".

Mary & NiceGuy,

I've been trying to sell through two separate agents, I think the first one lacked basic skills of the trade (or feigned ignorance of what they were doing wrong), and the second one has been disadvantaged by their sales photos being of empty house in November.

Selling price has only been reduced a week, so I am seeing if that helps.

Both agents were "confident" the house would achieve the asking price quickly, and in both cases the price wasn't the highest valuation they (or their competitors) gave.

Thanks for the input.

-AS

10-12% plus VAT is not far off. Some work off a fixed price depending on £PCM others a %. A higher cost doesn't necessarily mean a better service.

Estate agent valuations really are a guide and a loose one at that. Your property really is only worth what someone will pay for it. But, at least you're trying things. Out of interest what was it on for originally and how much have you reduced it by?

niceguyed

00ec25 wrote: »

as you are comoparing the financial return against ISAs then you also need to allow for Income Tax on the rental profit to get a truely comparable net return

If indeed there is a rental profit after allowable expenses. For the OP, also remember that you only need to complete a self assessment on rental income in the following circumstances:

£10,000 or more income from property (before deducting allowable expenses)
£2,500 or more income from property (after deducting allowable expenses)

00ec25

niceguyed wrote: »

If indeed there is a rental profit after allowable expenses. For the OP, also remember that you only need to complete a self assessment on rental income in the following circumstances:

£10,000 or more income from property (before deducting allowable expenses)
£2,500 or more income from property (after deducting allowable expenses)

true - but if the OP is not even making a (taxable) net profit after costs then the whole purpose of renting it out rather than selling it is destroyed as he would be sitting on a property whose value is falling and also is not even covering its own costs - the alternative being to sell it (even for a silly sum) and put that into something that gives a real +ve return

Note if you make a profit <2,500 you must still notify HMRC that you have untaxed income and you will have to pay tax - it's just that the calculation may be done by letter rather than the formal (horror:D) SA return

niceguyed

00ec25 wrote: »

true - but if the OP is not even making a (taxable) net profit after costs then the whole purpose of renting it out rather than selling it is destroyed as he would be sitting on a property whose value is falling and also is not even covering its own costs - the alternative being to sell it (even for a silly sum) and put that into something that gives a real +ve return

Note if you make a profit <2,500 you must still notify HMRC that you have untaxed income and you will have to pay tax - it's just that the calculation may be done by letter rather than the formal (horror:D) SA return

But if they have a mortgage it is being paid (hopefully) so at worst they have a capital asset. Value rises and falls are only on paper until a sale. I prefer not to make predictions on these matters (even educated ones)!!

Good point on the HMRC rental income declaration. I break even and just made the assumption no one makes a profit on BTL anymore. Ahem....

andysuth

@tc9064:

I assume you also apply the logic to under occupied properties like little old ladies living on the ground floor of 5 bed houses they raised their families in? Maybe just charging them 1.5x the council tax rather than the full 2x for empty properties ?

;p

There is a small allowance on top of tax for the letting of properties which is enough to protect small landlords, but make little difference to the big ones.

As to why I swapped agents.I had no confidence in the original ones.

Both were on rightmove, but the first put as number 2 bullet point for the good points of the property "has a kitchen" . I was having to hand feed them.

They also told me another property on my street had just signed up with them the week before, which was a good reason I had for signing with them.

When I'd signed it was 8 weeks before the neighbours property went on the market with them. I asked them about this and they told me it made no difference to me.

I pointed out if someone went to see one property they could show them both for minimal additional effort they told me "we wouldn't have thought of that.... "

They also "invented" a viewer and an offer. I know for sure they were lying, I haven't told them how I knew.

Finally, the new agent has a shop in the area which is better for them getting out to viewings and the small number of old school window shoppers.

The new agent has much more about them.

Will review situation on Monday with agents.