We will cover 3 tips for selling your multi-family property in Colorado Springs :
1. Know what you own: Get an inspection to know the layout, condition of the property, and infrastructure. An honest evaluation can save you headaches later.
2. Know the law: Familiarize yourself with any laws or ordinances regarding multi-family properties in your area, including deed restrictions and tenant protections.
3. Sell for top dollar: The most common mistake sellers make when selling a multi-family property is underpricing it by not doing their research or getting the right advice on building comparables and market values. You don’t want to shoot yourself in the foot by allowing someone to buy your investment at lower than market value – if another buyer comes along who will pay more, it’s too late.
Check the Lease
If you’re unsure about the legalities of your tenants’ rights, don’t try to sell your property without hiring a real estate lawyer. If you do, you could get yourself into some serious trouble with your tenant files and their leases so be sure to get good advice on the matter before listing for sale.
Once everything is in order and all of your tenants have given consent for their files to be shared with buyers, there are numerous ways in which an agent can market your property. Because this is a multi-family deal, the options available to you aren’t as limited as they would be if it were a single-family home.
This will ensure that you are able to attract the highest number of buyers and get the most money for your property.
#4 Find Creative Financing Sources: This is one piece of advice I often give my clients who are selling their multi-family properties in Colorado Springs. You’ll want to identify financing resources that can potentially assist you with getting a buyer close to closing day. While there are tax benefits available, it is more important to get top dollar from your property. If you think you may need assistance, ask your real estate professional if they can present you with potential lenders who deal specifically in these types of transactions.
#5 Ask For More Than One Offer On Your Property: Take advantage of opportunities when multiple offers come in so you can net the highest possible income from this property.
Buying a multi-family property with a tenant in place can be a pleasant experience or it can turn into a nightmare. Either way, if you are the new owner, make sure you know what you’re getting into with the following list of questions: 1) What is your employment status? 2) Why do you want to move? 3) How many occupants will there be in the unit after I take ownership? 4) Will utilities such as heat and water be included as part of my maintenance fee so that I am only paying for electricity? 5) When is your lease up? 6) Do you plan on moving out before then, or do I need to enforce a notice to vacate at some point? 7) Where will your furniture go after the rental agreement ends? 8) Are you in the process of downsizing?
If the seller didn’t inform them of problems and instead presented a flawlessly maintained property or one that is in pristine condition, the buyer will likely assume there are no further flaws to be found. The seller has thus gained an advantage before negotiations have even begun. On the other hand, if you present them with the inspection report after they make an offer and disclose known issues beforehand, you can avoid any uncomfortable haggling over price later on during negotiations.
Whether or not to hire an inspector depends on your sales goals for the deal. If it’s a short-term flip or quick fast cash deal – yes hire a professional inspector! Both parties will benefit because you’ll know exactly what needs to be done and how much it’ll cost which could shave thousands off of the sale price at closing.
Why not at least give this a shot? Call us today!
It’s no secret that more people are living in multi-family units as opposed to single-family houses. This is especially true with renters trying to cover a large portion of their monthly housing expenditures on a small salary. Not only that, but within the rental market, investors have become the key component in this dynamic growth. If you are an investor or landlord within Colorado, especially Colorado Springs. I hope and encourage you to participate in our most recent research efforts!