Sell a Multi-Family Home Quickly with These Important Steps
written by: Willie Scott•edited by: Laurie Patsalides•updated: 8/10/2010
A multifamily home is a house with a number of units, normally housing families who are rent paying or leasing tenants. Selling multifamily homes to investors is different from selling to a normal home buyer, so multifamily home owners should be aware of the differences
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A multifamily home comprises of two or more families occupying two or more apartments either side by side or one on top of the other. The homeowner may be one of the families residing in the duplex. In other cases, a family leases the apartment or unit for set periods, paying the multifamily home owner an agreed amount of rent.
Selling a multifamily home fast differs from selling a single family house fast, and this is an article where we will investigate the methods employed in selling a multifamily home as quickly as possible. We begin with an examination of some of the more important factors to be considered.
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Important Factors Involved
Contacting a Lawyer, Lender and Realtor
The very first action to take when selling your multifamily home fast is to arrange an early consultation your lawyer, advising him of your intention to sell the property. The financial institution who holds the present mortgage, along with a realtor are the other professionals to consult. It is imperative that the lawyer and realtor are contacted regularly to check on progress, and closely monitored to ensure a fast sale.
Apartment for New Owner
Most new owners of a multifamily home prefer to live on the property, so if a tenant is leaving the apartment reserve the apartment for the new owner. This will allow him an early entry date and could prompt an offer to buy if the apartment is vacated. Also, it will give the potential owner an idea of what the apartment looks like empty.
Multifamily Home Financial Receipts
A manually recorded file or computerized financial filing system of tenant’s rent receipts, and repairs to the property, especially to the essentials, such as a roof and the heat, should be organized and ready to share.
Receipts for electricity and gas bills along with water rates and taxes should also be maintained and ready for inspection by the prospective buyer, who will appreciate the opportunity to ‘inspect the books’ helping to make a fast sale.
Tidy up and De-clutter the Building
A good overall clean-up of the multifamily home is one of the most important precursors to a fast sale. Start at the top of the house by getting rid of all extras, then give the landing walls and stairwells a quick wash-down or paint touch-up.
Gather and bag all the litter from the front and backyard. Cutting grass, weeding borders and adding colorful flowers to the landscape will give a favorable curbside appeal to the potential buyer and can lead to a fast sale. Be cautious of an over-landscaped property as some potential multi-family homeowners will view it as more cost and work for them to maintain.
Best Time to Sell a Multifamily
Picking the best season to sell your home enhances the chance of a fast sale. In the US and Europe late spring and early summer are best. Also investigate any new businesses or large projects such as hospitals or schools coming to the area that will require accommodation for its workers; showing the potential buyer some leads for income will encourage a fast sale.
Choosing the Optimum Asking Price for a Quick Sale
Have an independent appraisal done to assure you get the best price. However, if you can afford it, drop the price even by a few thousand dollars and include furniture, kitchen appliances, curtains and rugs in the asking price as this will enhance the chance of selling a multifamily home fast.
Sell to an Investment Company
As a last resort, sell the property to an investment company who claim to make a realistic offer for any multifamily home within 48 hours of an inspection sometimes closing within a week. Just do your homework and contact the Better Business Bureau before using a company like that.
Selling a multifamily home fast is somewhat different from selling the traditional home. This is mainly due to the fact that multifamily homes are bought as an investment, the individual units being leased to tenants.
However, there are several similarities to selling a traditional home, the hiring of legal, civil and financial professionals for instance.
Clearing trash and clutter away from yards and internal rooms will also act as a boost to a fast sale as it will be considered move-in condition, which is a great selling point.
A good set of financial records which include tenants rent payments, home repairs, utilities bills, and water and service receipts will also enhance the success of selling a multifamily home fast.