When you sell a multi-family property, there are likely to be more people involved, depending on how many units you have. California has laws, rules, and regulations that multi-family property owners must follow, so sellers must put a great deal of thought into the transaction to ensure they are not crossing any legal lines. Failure to do so can be extremely costly and time-consuming.
We will cover five tips on how to sell a multifamily property in California.
Check the Lease
In order to sell your multifamily property in California, the first thing you need to do is open all of the leases and review them carefully to ensure that all of your tenants’ rights are considered. In addition, buyers will request access to your tenant files, so be doubly sure everything is in order. In case your leases are all solid, some buyers may move on to another property if they wish to occupy one of the units.
To compete on the market when you’re selling your multi-family property in California, you must present the property in the best light possible. Take a snapshot of the property. 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. You’ll want to trim lawn and shrubbery, paint the building more appealing, and be sure any signage is attractive and the parking lot, amenities, or equipment is well maintained. Pay attention to door locks as well. Fumbling with a key won’t make a good impression.
In California, if your documents aren’t ready for review and in good order, you could turn off potential buyers. Keep your bookkeeping records up to date. This section will allow you to see the yearly net operating expenses and income from the rental of your property. The report allows buyers to compare your property with others quickly and determine if it is worth pursuing the transaction further. Please provide any paperwork that reveals regular maintenance, repairs, and any warranties that may still be valid. As well as the roof’s age, you should also include any important systems, like the heating or air conditioning, and any appliances in the units.
Before selling your multi-family property in California, it is a good idea to have an inspection performed. It is best to find surprises before selling. By identifying the issues before entering negotiations, you will be able to determine how best to resolve them. After reviewing the inspection, and considering your property as a fixer-upper, the buyer is likely to make an insultingly low offer. Your buyer is less likely to be interested in rehabbing a multi-family property and is more likely to walk away if the inspection reveals a problem that the seller neglected to mention.
Sell directly to MCB Homes Inc. – we buy whether or not you have tenants! At MCB Homes Inc., 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 MCB Homes Inc. 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 MCB Homes Inc. makes selling your multi-family property in California easy! Call MCB Homes Inc. at (209) 743-0602 or send us a message today.
This article on selling your multi-family property in California applies to all cities in California State including, Lodi, Modesto, Stockton, Sacramento, Turlock, Valley Springs, Salida, and Oakdale.