Property Investor Alert - Why it is not smart to let your letting agent be your selling agent

For investors wanting to sell, it is natural to think it is fair to give their managing agency the selling authority.

However that does come with pitfalls that can adversely affect the final selling price. Hereís why.

Most principals of agencies build a roll of rental properties to give the agency a regular cash flow. But the rent roll also has a significant effect on the value of the agency if he decides to sell it.
In other words, the more rental properties he has on his books, the more he will get when he sells the agency.

If a property sells from his rent roll to an owner-occupier, then not only has he forfeited the regular cash flow, but his agency has lost some of its value. So he has a vested interest to keep it in his rent roll and sell it to another investor.

At the end of the day that property should be marketed to all market segments and be sold to the buyer willing to pay the highest price to the seller REGARDLESS of whether they are
an investor or an owner-occupier. And it is the owneróoccupier who is generally willing to pay the most money because they buy with their hearts since they are going to be living there, where
as an investor just crunches the numbers and doesnít get emotionally involved.

A professional property consultant from an outside agency will be able to have a good working relationship with your property manager and your tenant and get you the highest possible price without any possible conflicts of interest.

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Property Investor Alert - Why it is not smart to let your letting agent be your selling agent