Unlike a private home, selling your multi-family property involves several people, depending on the number of units. Sellers must put a great deal of consideration into the transaction to ensure they aren’t crossing any legal lines regarding the laws, rules, and regulations of Durham by which multi-family property owners must abide. Failure to do so can be extremely costly.
We will cover five tips for selling your multi-family property in Durham
Check the Lease
When you set about selling your multi-family property in Durham, the first thing you need to do is open all of the leases and do a thorough review, ensuring that you’re considering all of your tenants’ rights. Additionally, buyers will request access to your tenant files, so you’ll want to be doubly sure everything is in order. Some buyers wish to occupy one of the units, so they may move on to another property if your leases are all solid. Ensure the property complies with all local laws, codes, and regulations. Make sure all necessary permits and certificates are in order.
Prepping
To compete on the market when you’re selling your multi-family property in Durham, you must present the property in the best light possible. Take a snapshot of the property. Looking at the photo may help you focus on the curb appeal or lack thereof that a buyer would note as they scroll through listings. You’ll want to trim lawn and shrubbery, paint the building more appealing, and be sure any signage is attractive and the parking lot, amenities, or equipment is well maintained. Pay attention to door locks as well. Fumbling with a key won’t make a good impression. Organize open houses and private showings for interested parties. Showcase the property’s potential and emphasize the advantages of multi-family ownership. Emphasize the property’s potential income to attract investors. Present rental history, occupancy rates, and the potential for rental increases or property improvements. Understand the local real estate market trends, especially in multi-family properties.
Knowledge about rental rates, demand, and comparable sales will help in setting the right price. First impressions matter. Ensure the property looks appealing from the outside and inside. Fix any visible maintenance issues as they can impact buyer perception. Use a multi-faceted marketing approach. Utilize online listings, real estate websites, social media, and networking within real estate circles. Consider hiring a real estate agent experienced in multi-family properties.
Documents
Prepare thorough financial documentation including profit and loss statements, tax records, and any maintenance or repair records. These documents can reassure buyers about the property’s financial health. You risk turning off a buyer if your documents aren’t ready for review and in good order when selling your multi-family property in Durham. Your bookkeeping records must be up to date. Your yearly net operating expenses will be of much interest, outlining all costs associated with the property, as well as the income from the rentals. This report provides buyers the ability to compare your properties with others quickly and if it is worth delving further into the transaction. Provide any paperwork that reveals regular maintenance, repairs, and any warranties that may still be valid, which hold value to the buyer. You’ll also want to include documents showing the roof’s age and the major systems, such as heat or air, and the appliances in the units.
Inspections
It is wise to have an inspection completed before selling your multi-family property in Durham. Finding surprise problems ahead of selling is best. Knowing the issues that exist will allow you to decide how best to resolve them before entering into negotiations. Should the buyer remain at the negotiating table upon reviewing the inspection, now considering your property as a fixer-upper, they will likely make an insultingly low offer. It is more likely your buyer isn’t interested in rehabbing a multi-family property and will walk away if their inspection should reveal a problem that the seller didn’t bring to their attention previously.
Direct Sale
Sell directly to Jiffy Offer – we buy whether or not you have tenants! At Jiffy Offer, we purchase properties as-is for cash, so closing is fast. Highlight the benefits of multi-family properties such as income stability, multiple income streams, and economies of scale. Investors often value these aspects highly. There’s no need to worry about sprucing the place up, or completing repairs, or paying holding costs while the property lingers on the market. The professional buyers at Jiffy Offer will go over the numbers with you, making sure you agree that our offer is fair. We will also present to you what you would realize if you were to list your property on the MLS so that you can compare all options. Working with Jiffy Offer makes selling your multi-family property in Durham easy! Call Jiffy Offer at (919) 324-0891 or send us a message today.