HOW TO WORK

OUT A BUY TO SELL

PROJECT COST
CHECK LIST
Buy to Sell is a very profitable Strategy in Property. I want you to ensure you have a
20% profit margin on all your projects, both so you make money but also so you have a
safety margin for any speedbumps you may hit in property.
This means that if you are selling a Buy to Sell Project for £500k, your total costs will be £400k.

And most importantly, your profit will be £100k.

Before you start a Buy to Sell Property Project, it makes sense to run through a checklist to
ensure your planned project’s financials stack up.
Let’s start you from how we started, with a simple checklist

End Value Puchase Price

 ind out, through research, the end value you
F Identify the maximum purchase price you
expect the property to sell for. want to pay for the property

 se your most conservative figure as the

U
end value – hope is not your friend here, be
realistic!

 e use 45 pieces of data to establish this end

W
value. Take the average of these numbers to
get to your end values for the property to sell
for, so you are relying on data, not hope!

• 20 ‘on the markets’, currently being sold –

Zoopla or Right Move will give you this data.

• 20 ‘SOLDS’ – recently sold in a similar area

or close by, with a similar space layout
and room numbers. Zoopla, Right Move or
Mouseprice can give you this data.

• 5 Estate Agent Opinions – call up 5 agents

operating in that quarter of mile radius and
ask them their view, of the property done
up. White walls, beige carpet, nothing fancy
– how much would it likely sell for is the
question.

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Deal Costs
Finding the Deal, such as
• Petrol, admin, phone costs, sourcing agent
costs if used…
 ffer costs which are costs prior to exchange,
O Refurbishment costs such as
such as
• Survey if you feel it is needed
• Any reports you want to have on the
property
• Advance Legal Pack Report costs if buying
at auction
• Legal report costs from your Conveyencing
Solicitor
• Searches costs
• Application fees for finance such as bridging
Exchange costs, such as
• The BAC transfer costs
• Insurance
Completion costs, such as
• New keys to change the locks
• Redirection of mail from the property to
your office
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Finance costs such as
• Bridging / formal / informal funding interest
costs, for a period of between 6 and 9
months, minimum (this timeframe keeps
you safe in a worst case scenario)
• Fixed Price quote for the refurb
• Contingency: something is likely to go
wrong! Try contingency of 10% for a safety
margin!
Management costs such as
• Utility bills; gas, electricity, water rates and
council tax
• Service charges if a flat or leasehold
• Insurance
• Administration and postage
• Ground Rent if applicable
Staging costs such as
• Your Posing Kit Furniture: this can be shared
from project to project, but has a lifecycle,
before you pop it into a Buy to Let for
tenant use. I usually use staging furniture 5
times in Buy to Sell Projects, before popping
them into a Buy to Let project.
• Fortnightly cleaner (who picks up the mail
for you too)
• Fortnightly window cleaner
• Fortnightly gardener
• Continued utility bills
• Professional photographer
Selling costs such as
• Exit fees for bridging or finance
• Legal bill
• Estate Agent Commission
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How to Make Money
with Buy to Sell
Your mark up for a Buy to Sell Project is 20%
mark up on all costs. So for example if your total
costs are £300k, you add 20% and ensure you
have a project you can sell at £360k. That means
you will get £60k profit.

Bonus Key Tip

 nce you have identified every cost, put
O
them into a spreadsheet Susannah Cole
 dd the purchase price of the property,
A Susannah Cole is highly respected in the Property
plus all costs, to get to a total Investing Circles. She is a well established property
expert who has experience running a very
 he sweet spot for a Buy to Sell is a mark
T successful flipping strategy and owns a substantial
up of 20% and above HMO and single let property portfolio.

 ake your total figure (purchase price of

T She started The Good Property Company in 2011,
the property, plus all project costs) and
times it by 1.2.
 or example, purchase price of £80k, all
F £45 million, and an agreed purchase price of £30
additional costs of £20k makes a total of
£100k. Therefore I need to be sure I can sell
the property for £120k to consider doing it
as a Buy to Sell.
If you are SURE you can sell the property for the
*1.2 figure, go for it!
Remember, of you are selling property for £500k,
it should have cost you all in £400k.
as a kitchen table startup. In the first 5 years
alone, she and her team sourced, bought, sold or
let out more than 200 properties, with a value of
million (before refurb).
She loves property and loves to give back, in the
shape of Workshops and her Property Mentoring
Programme, helping others achieve (and hopefully,
surpass) her own successes to date.
Get in touch with us if you would like to hear more
about how her workshops and mentoring can help
you – all top athletes need a coach and she has
found having mentoring and training in property to
be invaluable.

Check Out More Great Content on

The 20% markup, will be your profit.
Our YouTube Channel
That is £100k.  www.youtube.com/user/goodpropertycompany

This strategy is well worth delivering on. Our Website

www.thegoodpropertycompany.co.uk/

Good luck in property! Our Facebook Page

www.facebook.com/SusannahColeTGPC/
Susannah and the TGPC team Our Instagramme
www.instagram.com/susannahcoleuk/
We’d love to hear from you!
Give us a bell on 0117 942 8914, or email us on
info@thegoodpropertycompany.co.uk

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