Selling a multifamily property such as an apartment building or a duplex requires considerable preparation. Price your multifamily property properly, keep your records organized, get the property in tip-top shape and it will be that much easier to pinpoint qualified buyers. It really is possible to fetch much more money than originally anticipated for a multifamily property regardless of whether buyers are difficult to find your local area, current market conditions and other factors.
Prepare the Property for Sale
Perform your due diligence before putting the multifamily property on the market. Interested parties will request evidence of annual expenses and income. Make sure you have supporting information ranging from utility bills to tenant leases. Fail to have these documents organized and interested parties might shift their attention to other properties.
Get the Property in Tip-top Shape Before Putting It up for Sale
If there are any blatantly obvious issues with your multifamily property, have them tended to right away. Though most of those in the market for a multifamily property will not expect these spaces to be in the same pristine condition as single-family homes, if there are clear problems, it indicates the building has even more hidden issues that will take time and money to remedy. Repair the property before listing it and you just might trigger a highly competitive bidding war that pushes the price higher and higher.
Get rid of Those Problem Tenants
No one wants to purchase a multifamily property with loud, messy or otherwise-annoying tenants. If you allow problem tenants to stay, they will likely send interested bidders scurrying away to properties with more mature tenants. If your best tenants give word they are looking for a new place to live, consider slightly reducing their rent before putting the property up for sale. Do everything in your power to keep these rock-solid tenants, evict problem tenants and it will be that much easier to attract a buyer.
Marketing a Multifamily Property
Reach out to those who own similar investment properties in your community. Some such owners are likely interested in owning several properties in the same area. Aside from the fact that these investors have plenty of money to spend, they are also likely to be interested as they can extend their maintenance team to newly-acquired buildings in a seamless manner. Even if those in the community who own similar investment properties are uninterested, they might know someone who is in the market for a multifamily building. This no-cost word-of-mouth marketing has the potential to identify interested bidders willing to pay fair value for your multifamily building.
Hire a Real Estate Agent Experienced in Selling Multifamily Properties
The assistance of a real estate agent experienced selling multifamily properties will facilitate the sale of your building. Ask for examples of previous multifamily properties sold by the agent in question before making a commitment. The real estate agent you select should understand the nuances of the local market for multifamily properties as well as marketing strategies to fast-track the property’s sale. It is no longer enough to use traditional outbound advertising methods such as newspaper ads. The real estate agent should have inbound marketing strategies such as social media mastered as well. Otherwise, it will be difficult for the real estate agent to maximize the pool of prospective buyers.