When you market your multi family property, youâ€™re looking for 3 things:
â€¢ A full value price
â€¢ The most favorable terms
â€¢ A timely sale (not necessarily quick, but not sitting on the market for a year, either)
In order to achieve those goals, you need a great multi family property broker â€“ preferably one whoâ€™s been a real estate investor and multi family property landlord â€“ because heâ€™ll take the time to analyze your property and the neighborhood carefully to ensure that you receive full value for your property.
Commercial real estate studies have invariably shown that the people who end up selling for less are those who didnâ€™t take advantage of the expertise of an investment specialist to represent them.
Your best bet is to go with a multi family property broker who will study what the market place has done and what your competitors are trying to do so that she can advise you on what your propertyâ€™s accurate value is. Such a broker would also bring in figures from 6-12 other comparable sales, including:
â€¢ Price per unit
â€¢ Gross rent multiplier
â€¢ Cost per square foot,
â€¢ Cap rate for properties valued above $500,000
As far as a timely sale, much of your success is in your own hands. You can have a huge impact on the timing. If youâ€™re highly motivated to sell and willing to work with your broker on price and terms, you could see an offer within a week.
Generally, however, the process takes from three to six months to generate and negotiate an acceptable offer, since it usually takes two weeks for a buyer to inspect the property, review the paperwork and waive all the contingencies other than financing.
If the buyer uses financing, then lining up the loan typically takes about six to eight weeks. Thus, closing escrow may occur two to three months after you and your buyer come to an agreement on price and terms.
Therefore the keys for choosing a company and working with them are:-
â€¢ Previous Multi Family Property Brokerage Experience
â€¢ Previous Multi Family Property Management Experience
â€¢ Willingness & Ability of Broker to complete due diligence of the Multi Family Property
â€¢ Willingness (yours and the brokers) to be flexible on terms
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