Your Guide to Successfully Selling Multi-Family Housing
Selling a multi-unit residence is far more difficult than selling a single-family home. Real estate agents who would like to sell duplex, triplex or another type of multi-unit housing need to understand the details that go into these types of transactions.
If you’re ready to tackle a new type of challenge in your real estate career, continue reading for a helpful summary of what agents need to consider when selling multi-unit properties.
Multi-unit real estate transactions take more time
Selling multi-unit properties can take a lot longer than selling a single-family home. Here’s a quick rundown of what the selling process can look like:
- Prepare to sell the property. Preparations could include (legally) evicting problem tenants who currently reside at the property, repairing items and attractively staging a unit. If one unit can remain empty while the property is on the market that is ideal.
- Compile any necessary investor data. Multi-unit homes are an attractive investment, and having numbers ready can speed up the eventual sale. Create a due diligence packet with annual income, expenses, utilities and other helpful information you can share quickly with potential buyers to ease the process.
- Market the property. You should reach out to owners of nearby multi-unit investment properties. If they don’t want to add to their own portfolio, they may know another investor who is looking for a new property.
- Consult an attorney. Encourage your seller to work with an attorney to make sure they are in compliance with any rules, regulations or local ordinances. An attorney is also crucial if the seller wants to offer owner financing.
Encourage sellers to secure a pre-listing inspection
As mentioned above, most buyers of multi-unit buildings see their purchase as an investment, even if they plan to occupy one of the units themselves. This tends to have an impact on how many issues they’re willing to live with when purchasing a property. Some buyers will welcome the challenge of a fixer-upper if the price is attractive enough. Others are looking for a turn-key property.
A pre-listing inspection is helpful for everyone involved in the transaction. Sellers can choose to fix items that might otherwise cause a buyer to walk away, which saves time and prevents headaches for all parties. Buyers gain a more comprehensive understanding of the building’s overall condition, too. This reduces the likelihood of a buyer abandoning the deal due to a problem with the property.
Consider partnering with a more experienced agent
Since selling multi-unit or multi-family properties can be so complicated, some agents choose to team up with a more experienced real estate partner. If you can learn from someone in your network, you’ll get an invaluable inside look into the nitty-gritty details that are so important when selling this type of real estate.
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