The Steps to Take Before Selling a Multifamily Property
Talk to a Broker Who Specializes in Multifamily Property
When you select a broker to sell your multifamily property, be sure to choose someone who is experienced in selling this type of housing rather than someone who has sold only single-family homes or condominiums. Multifamily properties often have different marketing needs and require working with different types of buyers. Brokers who handle these types of transactions are knowledgeable about how to prepare these buildings for sale and how to formulate a successful marketing campaign. Moreover, they may already have working relationships with buyers’ agents who specialize in representing multifamily property buyers in your area.
Prepare the Building for Showings
If you or your property management staff hasn’t seen the inside of your units recently, try to schedule unit inspections in advance of scheduling showings with potential buyers. This will give you the opportunity to ask your tenants to cure any lease violations that a buyer may find concerning. At the same time, you can identify maintenance issues that need to be addressed prior to a showing. You should typically give your tenants reasonable notice of any inspections, showings, or regular maintenance. Reasonable notice is usually considered to be at least 48 hours in advance. The day of a showing, ensure that the common areas are in good condition and the grounds appear well-maintained.
Identify and Cure Major Deficiencies
When you’re getting ready to sell a multifamily property, you likely won’t want to put a lot of money towards costly renovations. However, it may be important to address your property’s most outstanding problems such as code violations. Any problem that doesn’t comply with your city or municipality’s building safety code could be a serious problem. These types of issues are likely to be flagged by a buyer’s inspector and could be big obstacle for a buyer who needs to secure financing for the property.
Prioritize Non-Urgent Items
Unless you have no choice but to sell your property as-is, you’ll need to consider what small but effective improvements would make the building more showable and sellable. Sometimes, small touches can make a big difference. First, try to prioritize whatever maintenance needs are most visibly overdue, and then move on to improvements that would make the building appear more aesthetically pleasing overall.
Selling a multifamily property is a big undertaking. By working with the right people, staying focused on your priorities, and allocating costs effectively, you’ll optimize your chances for a smooth and profitable sale.
