Selling a multi-family home involves a good amount of additional work versus a traditional single-family home. Sellers of multi-family property must be aware of and comply with the relevant laws, rules, and regulations for Little Rock as a way to avoid problems. Failing to know about the laws or keeping up to date with regulations is a costly mistake that owners often make. Below we will dive into our best 5 tips for selling your multi-family property in Little Rock.
Check the Current Lease
The first thing you will want to do is make sure that any current leases are up to date and in good standing. If you sell the building but are still holding onto a lease, this could result in serious consequences for your tenant. It is important that you notify them of the sale as soon as possible so they can begin their own search or renew their lease at another property. Be sure to check the Arkansas Attorney General site for more information about tenants rights before selling.
You will also need to check on any strata agreements or rules regarding the selling of the property. These documents help regulate how many people can live in a unit, what type of pets are allowed, and other such regulations. Keeping these documents handy will greatly help you with getting buyers to submit a number, remember investors care about numbers more so than appearance.
Prepping The Property For Potential Buyers
To compete on the market when you’re selling your multi-family property in Little Rock, you must present the property in the best light possible. Grab a photo of the property and objectively view how you would look at the property if you were a buyer. 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. Be sure to trim the lawn, paint, and make any necessary repairs before putting it on the market. This will make a better impression on potential buyers and result in more money for sellers.
Making Sure You Have the Right Documents
Sellers must not only keep up with their paperwork when selling a multi-family property but also prepping the building for showings. When looking to sell a multi-unit property, it is important to know how much net operating expenses the buyer needs. This report will show buyers how your units compare with others on the market and whether they are worth investigating any further. Include any paperwork that shows the building has been structurally maintained over time and regular repairs have been made, in addition to documents showing warranties on major systems such as heat or air conditioners. Any structural upgrades should also be noted with the year that they were completed.
Getting Ahead of Inspections
If you plan to sell your multi-family building in Little Rock, it’s wise to complete a pre-sale inspection. Understanding the issues that exist will allow you to make an informed decision about what needs repair or replacement before entering into negotiations with buyers. If the buyer remains at the negotiating table and considers your property as a fixer-upper, they will likely make an insultingly low offer. Sellers of multi-family buildings often find their buyers feel they would be unable to handle the large undertaking of rehabbing a property with multiple units, and might decide not to purchase if they discover a serious issue during an inspection.
Going Direct Versus Listing Properties
Sell directly to a home buying company has many benefits. At Little Rock Property Buyers we purchase properties as-is for cash, so closing is fast. 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 Little Rock Property Buyers will go over the numbers with you, making sure you agree that our offer is fair. We will also present you with a listing on the MLS option so you can see the difference between the two. Working with Little Rock Property Buyers makes selling your multi-family property in Little Rock easy!