Are you selling a multifamily home soon? Don’t have any experience selling multi-family properties?

If you’ve been tasked with selling a duplex structure or a multi-family building, you’ll have your work cut out for you. Especially if you’ve never done it before, it can be tricky to make sure you do it right and without any setbacks.

Fortunately, we’ve got you covered. Here’s what realtors should know about selling a multi-family property.

1. Preparation is Essential

While this is true of any home that is for sale, with a multi-family home, it’s especially important to make sure that the home is prepared well before putting it on the market. The seller should have put a considerable amount of effort into boosting the curb appeal of the home, keeping common areas clean and well-maintained, and ensuring that all doors and locks are working as they should be.

Be sure that you take some time to prepare the home properly and to present it well. This will help ensure that any investors that are looking to buy won’t be scared away and will see the property in the best light possible.

2. You Need to Check Leases Carefully

One of the main things to remember when selling a multi-family home is that you need to keep the rights of tenants at the top of your mind at all times. It’s important to dig into the leases for the various units before selling and to clearly assess what terms each lease contains. You should also clearly establish what the rents are for the different units. You should make note of other details as well, such as what security deposits are being held.

Selling multi-family properties can be a bit trickier if they’re currently occupied. You’ll want to review the leases carefully and ensure that all issues are dealt with before selling.

3. Gather Necessary Documentation

When selling a multi-family house, it’s important that you assemble all of the documents that will be needed for the sale. Homebuyers and investors would like to see a lot of information about a home before buying it, so it’s important to collect this ahead of time and have it ready to be reviewed.

Some important documents to gather could include warranties and receipts for any work that has been completed on the home. Any records the seller has should be brought together and made ready for showing to a buyer. With a multi-family home, it’s especially important to get financial documents together. You should ensure that all operation figures are clearly documented and that all information about income, monthly rent, and expenses are recorded and available to review.

While investors can access the capital they need with Max Benjamin Partners financing, they’ll still want to know exactly what they’re getting into. Creating a due diligence packet with accurate numbers and data can be incredibly helpful for finding a buyer and getting the home sold more quickly. 

4. You Should Get Inspections Before Listing

When selling a duplex building or a multi-family structure, it’s important to get a pre-listing inspection. It’s important to be completely aware of any issues or problems so that headaches can be avoided by both the seller and the buyer.

Pre-listing inspections can give the seller a clear idea of what fixes may need to be made before trying to attract a buyer. On the other hand, investors tend to like to know what they’re dealing with and if there are any problems with the property, then they’ll want to know about them early on.

Even if an investor will be happy to get a fixer-upper, offering more clarity about the condition of the multifamily property will make it more likely that you’ll be to make a sale.

5. Selling Multi-Family Real Estate Can Be a Slow Process

One thing that realtors and sellers need to recognize with selling a multi-family home is that doing so tends to take more time compared to selling a single-family house. 

Because there are so many things to do when getting a multifamily home ready to sell, the process can take quite a bit of time. This may include gathering necessary documents, improving curb appeal, evicting problematic tenants, and making changes to various units to make them seem more attractive to buyers. 

Preparing a multi-family home may also include consulting with an attorney. This can help you find out if there are any regulations or ordinances that need to be complied with in order to sell the property.

Because of the many things that need to be done before selling, it’s important that a seller and realtor are patient and take the process one step at a time.

6. Working With a More Experienced Agent Can Be Helpful

When selling a multi-family property, it’s often a good idea to get extra help. If you’re a realtor who has never sold a multi-family property before, it can be well worth finding another agent to partner with who has more experience in the matter. 

Partnering with an agent who has more experience can help you ensure that the process goes smoothly and that you don’t make any mistakes when it comes to dealing with the finer details of preparing and selling a multi-family home. By getting extra assistance from an established professional, selling the multi-family home will become a lot easier to handle overall.

Getting Ready to Successfully Sell a Multifamily Home

If you’ve been tasked with selling a multifamily home, you need to be sure that you’re prepared for what’s up ahead. Be sure that you consider all of the information above as you get started with selling a multi-family home.

Need more real estate tips and strategies? Start reading through our blog now to find more helpful tips and advice for realtors.