Unlike a private home, selling your multi-family property involves several people, depending on the number of units. Sellers must put a great deal of consideration into the transaction to ensure they aren’t crossing any legal lines regarding the laws, rules, and regulations of Kansas City by which multi-family property owners must abide. Failure to do so can be extremely costly.
We will cover five tips for selling your multi-family property in Kansas City
Check the Lease
When you set about selling your multi-family property in Kansas City, the first thing you need to do is open all of the leases and do a thorough review, ensuring that you’re considering all of your tenants’ rights. Because the price of the property is based on cap rates and NOI vs. comparable sales as in residential property, verifying and proving the rent roll is very important. The new buyer will also want to understand the lease status of all of the tenants. If they intend to live in one of the units, they may also be checking to see if there is a unit coming available for their use as well.
To compete on the market when you’re selling your multi-family property in Kansas City, you must present the property in the best light possible. This is really no different from multi. vs residential real estate. Essentially, you want to present the property in the best possible light. This means updating the landscaping and signage, cleaning up trash and debris. It may also mean doing some quick, easy and minor repairs such as door locks that are crappy and stick. Present the property as attractive and as turn-key as possible for the new owner.
You risk turning off a buyer if your documents aren’t ready for review and in good order when selling your multi-family property in Kansas City. Your bookkeeping records must be up to date. Your yearly net operating expenses will be of much interest, outlining all costs associated with the property, as well as the income from the rentals. This report provides buyers the ability to compare your properties with others quickly and if it is worth delving further into the transaction. Provide any paperwork that reveals regular maintenance, repairs, and any warranties that may still be valid, which hold value to the buyer. You’ll also want to include documents showing the roof’s age and the major systems, such as heat or air, and the appliances in the units.
It is wise to have an inspection completed before selling your multi-family property in Kansas City. This will allow you to go into negotiations in the best possible light. If you present all of the flaws of the property, not only will this engender some good will in the transaction, it puts you in a very strong position. There is nothing that the buyer can come back with to drive the price down meaning that you can focus on other factors to negotiate the best price for yourself.
Sell directly to Green Sparrow Properties – we buy whether or not you have tenants! At Green Sparrow Properties, 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 Green Sparrow Properties will go over the numbers with you, making sure you agree that our offer is fair. We will also present to you what you would realize if you were to list your property on the MLS so that you can compare all options. Working with Green Sparrow Properties makes selling your multi-family property in Kansas City easy! Call Green Sparrow Properties at 816-800-9238 or send us a message today.