Selling your HMO?
Selling your HMO? Getting started
If you’ve decided to sell your HMO, we are happy to share useful tips on how to get started with the process and further information on how our HMO property buying service can help you.
What types of homes are considered to be HMO’s?
When a property is referred to as being an HMO, this broadly means that common areas (such as kitchens and bathrooms) are shared by different households. Most HMOs are conversions of larger houses by subdividing into a number of smaller areas.
Why is it sometimes more difficult to sell an HMO?
Most people are looking to buy a house which they can move into and live day one. In the case of an HMO you may find there are multiple tenants who will need to move out before you can consider moving in.
Also before a buyer moves in they would usually need to obtain planning permission in order to convert the property back to one residence which can be a time consuming process and something that most buyers are not interested in doing.
Finally, selling an HMO to anyone other than a cash buyer is often difficult since a buyer can not easily obtain a mortgage for buying an HMO property.
For these various reasons mentioned, selling an HMO is often a more time consuming and difficult process.
Options you have for selling your HMO property
Don’t worry that you won’t be able to sell an HMO because that is not likely to be the case, however you should be aware there are going to be fewer buyers for your house. Exploring the various options available are as follows:
You could explore converting your HMO back to a single property if you have the time and investment available. This option can be impossible for some people as you would need to sacrifice generating rental income whilst also spending money on the property.
As an alternative you could try to find a specialist estate agent who has expertise in selling HMO properties. They will have access to potential professional buyers, however you should be aware that they will charge fees for this and often prices offered can be much lower than exepcted.
A third option is to list your property at auction, which can be a wise move if you are looking for certainty on when your HMO will sell. There is a risk that your property generates little interest and sells for a low price, however by agreeing a suitable reserve price with the auctioneer this can give you some comfort. Don’t forget that auctioneers will also charge you fees for taking care of the sale of your property, however you can typically pass this cost onto the buyer as part of the auction special conditions.
Another choice you have is to sell your HMO to a specialist fast property buying company. This option can provide several benefits, including the knowledge that a reputable quick house buyer will typically never charge fees. Additionally, they are often able to complete on the sale within a few weeks, allowing you to move on with your future plans. Property buyers such as ourselves have professional experience in dealing with all property types, including HMO’s.