Assisted Sale

Discovering the Mechanics of Assisted Sales:

Step 1

Establish a mutually agreed-upon selling price for the property, typically reflecting its current value in its present condition – the amount it would fetch with a willing buyer.

Step 2

Initiate financing and coordination of necessary property enhancements to elevate it to a marketable standard. If lacking funds, consider partnering with a joint venture (JV) partner or even involve the contractor as a JV partner, where they essentially fund the refurbishment costs until realized from the sale proceeds.

Step 3

Once the improvements are completed, reintroduce the property to the market, targeting end-users like first-time homebuyers, not investors. The property, now in pristine condition, is likely to attract swift buyer interest.

Benefits of Assisted Sales:

Seller receives the predetermined upfront amount.
Refurbishment costs are recovered.
The surplus constitutes your profit.

Illustrative Scenario:

Let’s delve into a practical example with real figures to illustrate potential gains:

Current property value: £80,000
Refurbishment expenses: £25,000
Post-refurbishment sale price: £130,000
Seller payout at completion: £80,000
Gross profit after refurb costs: £25,000 (before costs i.e VAT and other expenses)

This strategy allows for a structured approach, ensuring both the seller’s satisfaction and a profitable outcome for you.