Selling a multifamily property can be considerably more complicated than listing a traditional home. In addition to dealing with current tenants, there are several laws, rules and regulations that must be followed in order to complete a sale legally.
While there’s a great deal of work involved with selling a multifamily home, it’s possible for first-time sellers to complete the process in a reasonable amount of time. And you can get started on the process by reading our tips on how to sell a multifamily property fast for cash below!
Types of Multifamily Homes
Before delving into how to sell a multifamily home, we’ll explain the different types of multifamily properties that are put on the market.
A townhouse gives the appearance of a singularly-owned detached home but is actually attached to another townhouse. These properties can also be stacked vertically. Townhouses that sit next to each other in a row are also known as “row houses”
A duplex is a property that is divided into two separate living spaces. While each has a separate entrance, these homes are usually connected to one another. Though they are attached to each other, duplex homes do not share any common area.
A triplex is identical to a duplex but has three living spaces instead of two.
A quadplex is just like a duplex and triplex but includes four living units. Quadplexes are also known as a fourplex or a quadplex.
What You Need to Know About Selling A Multifamily Property
Here’s what you need to know and do when you’re considering selling a multifamily property.
- Review All Leases & Tenant Rights
It’s absolutely critical to review all the leases and occupancy for each unit in your multifamily home before you put the property on the market. If you plan on selling the home with tenants remaining in the property, potential buyers will have several questions for you regarding leases and occupancy. These questions include what are the terms of any remaining leases, the rent amount and what it includes for each unit and are there any security deposits being held.
You also need to be cognizant of the rights of your tenants, which are different from state-to-state. Be sure to review your local tenant rights before putting the home up for sale.
Selling a multifamily home with tenants on extended leases can be an extremely difficult process. Your chances of a sale will improve dramatically if the home is empty.
- Prepare the Property for Prospective Buyers
No matter the type of property you plan on selling, you must make sure it’s prepared for prospective buyers to view. In most cases, multifamily homes are viewed as investments, so a buyer isn’t going to want to invest in a home they believe needs a lot of work.
When preparing the home to be viewed, ensure all the doors and locks on the property are working properly. Few things look worse to a potential buyer than struggling with a troublesome door or fidgeting with a faulty lock.
If there are designated parking areas on the premises, ensure they are clearly defined and in presentable condition.
If there any common areas on site, be sure to tidy them up before any showing.
Finally, don’t forget about curb appeal. Simply dressing up the front door, sweeping sidewalks or walkways and trimming bushes or flower beds can help make a great first impression.
- Have All Necessary Documents Prepared & Ready
Another crucial aspect of selling a multifamily home is making sure all necessary documents are prepared and ready for prospective buyers to view. Some of these documents include:
- Remodeling Receipts
- Age of Roof Documentation
- HVAC Systems Documentation
Current or updated roofs and HVAC systems are important to buyers today. Having records on hand showing the age of these home components can give you a big edge over other sellers.
Financial documents are also of great importance to buyers. Potential buyers need to know the net operating figures, which would include income from rent as well as expenses, such as insurance and repairs. Have all these figures ready BEFORE a buyer ever takes a look at the property.
- Finish Inspections Before Putting the Property on the Market
Any inspections that need to be done on the home should be completed before it’s put on the market. Each municipality is different and many require certain inspections to take place before any sale is complete.
No matter where you live, it’s a good idea to conduct a general home inspection before listing the house. A general inspection affords the owner the opportunity to fix any problems before buyers get the chance to see the property. This will also give buyers peace of mind when they are considering buying the home.
- Find an Experienced Agent
If you’re selling a multifamily home, it goes without saying you’ll want to find a real estate agent with experience in doing so. There are several questions you can ask a potential agent to test their knowledge, such has how much notice to tenants do you provide, how do you have a successful showing on an occupied property, and how do you handle tenants that refuse to cooperate.
These type of questions can weed out those who may not be a good fit for your situation.
Highest Cash Offer Buys Multifamily Properties Fast!
If you’re looking to sell your townhouse, duplex, triplex, quadplex or other multifamily property, we here at Highest Cash Offer want to talk to you! Selling your property with us offers several advantages, including:
- No hiring realtors or agents
- No closing costs
- No repairs
- No listings
- No realtors
- Cash in your hands in as little as 7 days!