The smart way to sell overseas property: exit strategy tips before you buy

Buying property abroad is exciting, but people often make a costly mistake: preoccupied by thoughts of enjoying their new home or spending the rental income, they only plan the purchase, not the resale.

But life changes. You might move abroad permanently, only to realise it’s not right for you. Maybe a job relocation or family situation forces a move. Or perhaps you want to release capital. Whatever the reason, eventually, most people need to sell their overseas property.

The solution? Build an exit strategy into the buying process. A little planning before you buy can mean the difference between a smooth, profitable sale and months – or years – of stress.

Let’s break down a smart exit strategy step by step.

Research market liquidity

A little local market knowledge goes a long way when planning your exit strategy – especially when it comes to how long properties typically take to sell, and what percentage below the asking price sellers accept.

Key points to research about the local property market:

·       Average days on market

·       Seasonal variations (coastal areas often sell faster during the summer)

·       Price reduction patterns

·       Local economic drivers (tourism, universities, retirement hotspots)

Positive signs:

·       Limited supply and strong demand

·       Significant expat population and active local buyer interest

·       Stable infrastructure (transport, schools, supermarkets, medical services)

Identify your future buyer

By understanding who will buy your property in the future, you can gauge if there will be sustained demand and healthy resale potential. Properties that rely on foreign interest alone are the riskiest to sell. So, answer some pertinent questions before buying:

·       Does the property appeal to multiple buyer types (young families, retirees, investors, expats)?

·       Would a local person want to live here year-round?

·       Is there strong rental demand?

·       Is the area growing or shrinking in population?

Understand overseas selling costs

When the time comes to sell, unprepared owners often receive an unwelcome financial surprise. In some countries, agent fees alone can be 4%–8% of the sale price compared to 1%–2% typical in the UK.

Other potential overseas selling costs include:

·       Estate agent commission

·       Local notary fees

·       Legal fees

·       Transfer or registration taxes

·       Capital gains tax

·       Energy performance certificates

·       Residency or tax clearance certificates

·       Municipal fee checks

·       Final utility and community-fee settlement

Ask your lawyer for a typical sale cost breakdown for the country you’re buying in. If you do this early – not when you’re trying to sell – you can budget for these extra costs before you put your property on the market.

Demand proper documentation from day one

Overseas properties are often sold with charming renovations, such as new terraces, pools, and garden buildings – but were they approved by the local authorities? If not, selling becomes almost impossible.

To avoid this disastrous scenario, make sure you obtain proof of the following before you buy:

·       Planning permissions

·       Building certificates

·       Utility connections

·       Boundary confirmations

·       Deeds and title verification

·       Energy rating compliance

If these documents are missing, your sale will quickly become a non-starter.

Protect your return with a currency exit strategy

Currency can dramatically impact your profit when the time comes to sell, even if the property price stays the same.

You buy for €250,000 when £1 = €1.14 → you pay £219,300
You sell for €250,000 when £1 = €1.30 → you receive £192,300

Even though the euro price hasn’t changed, you’d lose around £27,000 due to currency movement.

Protect yourself by talking to a currency specialist before the sale completes. They can help you protect the price of your sale using a forward contract and manage the timing of your transfers strategically.

This is especially crucial if:

·       You are selling a high-value property

·       You need funds in sterling for another house purchase

·       You are planning to repatriate proceeds to the UK

If you’d like to explore smart ways to manage your exposure to exchange rates during the sale process, contact a currency specialist.

Choose property types with proven resale history

Focus on property types that attract buyers year after year. Some features consistently hold value and sell quickly, while others can sit on the market for months and significantly reduce your negotiating power.

Great for resale:

·       Walkable locations near amenities

·       Properties with outside space (terrace, garden, balcony)

·       Sea view or near water (permanent demand premium)

·       Townhouses or apartments in well-kept complexes

·       Detached properties with legal pools

Hard to sell:

·       Remote countryside homes

·       Large houses with high upkeep costs

·       Timeshares or fractional ownership units

·       Properties with odd layouts or unfinished renovations

·       Homes in declining areas without year-round services

Ask about the property’s history

Before you get emotionally attached to a property, dig into its history. A few quick questions can reveal how desirable it really is, whether the price is realistic, and if there are any hidden issues that might affect its resale.

When viewing, ask the agent:

·       How long has it been on the market?

·       Has the asking price been reduced?

·       How many times has it been listed in the past five years?

·       Why is the current owner selling?

Agents won’t volunteer this information, but they will often tell you if you ask directly.

The most successful overseas property owners don’t just ask, will this be a lovely place to live, or will it provide a reliable rental income? They also ask, is this a sensible asset to own and eventually sell? If you think strategically from day one, selling abroad can be smooth, profitable, and stress-free.