Self-Build Mortgages  Selling a Self-Build

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Introduction to Selling a Self-Build
For most investors who opt for self-build, the most important factor, in terms of success, is how easily and for how much the property sells. Selling a new build should, in theory, be easier than dealing with an older property that has a multitude of hidden problems. This, however, is only true if you fully understand the implications of selling a self-build and are able to use the positive aspects of building from scratch to your advantage.

Ways to Advertise a Self-Build
Compared with advertising a used property, advertising a self-build property requires a slightly different approach.

Some estate agents deal specifically with new build properties that have been developed either by large-scale builders or by self-build investors. The advantages of advertising through specialist agents is that they know exactly what new build purchasers are looking for and will be able to time the advertising phases. For example, you could advertise the property several months before the property is actually finished. This enables you to secure a buyer in advance which will assist in the financing of the final stages. In order to sell a property in advance of completion, ideally, you need accurate plans, pictures (or artist's impressions) of the finished product as well as examples of the likely fixtures and fittings. A great way to attract buyers is to offer them the ultimate choice of finishing, if they agree to purchase before the decision has been made.

As well as using agents, it is possible to advertise independently through other media, including banners at the site itself and sending out leaflets and brochures of the impending development. This is a particularly good idea when the development includes more than one property and the costs of selling through an agent become disproportionately large. Spending a little extra on the brochure will lend a professional image and is more likely to encourage buyers to trust both you and your product.

Added Complications When Selling a Self-Build
Unlike selling a traditional property, marketing a self-build generally means working to slightly different timescales. For instance, if you do not agree a sale on the property until after it is fully built, then the selling timetable will be the same as for any other property. However, if you agree a sale before the property is complete, it is likely that there will be a different timescale.

With a property that is being built from scratch, exchange will normally occur within 28 days of the sale being agreed, but completion will not happen until after the build has been finished. This means that the time between exchange and completion can be as long as several years. With this in mind, it is worth remembering that you are agreeing a price on the property several months and possibly years before the property is actually sold. This commercial issue involves deciding on the likely movement in property prices over the time between exchange and completion. Further, if house prices rise dramatically, you may find that you will have sold the property for less than you could have gained at the actual time of completion.

Summary
Bullet Point Selling a self-build requires a slightly different approach to standard properties;
Bullet Point it is possible to advertise and even sell the property long before it is actually complete, making financing the final stages a lot easier and ensuring adequate cash flow;
Bullet Point on the downside, the sale price will be decided long before the date of completion which means that you may lose out on any general rise in the property market.

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