There are dozens of reasons why you would want to sell your multi-family property. More often than not, these properties have been inherited and have been used as rental properties. Most people don’t want to become landlords. You could use a traditional real estate agent, you could try to sell your property by owner, or you could sell your property to a local investor.
What Are Multi-Family Properties?
Multifamily properties contain more than one dwelling in a single structure. The most common types of multi-family properties are duplexes (two family), tri-plexes (three family) and quadruplexes (four family) dwellings. Some properties were constructed as multi-family, while others may have been converted later on. Residential loans can be acquired on multi-family properties with up to four dwellings. If the property has five or more dwellings a commercial mortgage, or cash, must be used.
Understanding the Buyer
Professional property buyers in the Wake County area typically close faster than traditional multi-family buyers, and usually pay full in cash. While you can try listing your multi-family property for sale on the MLS you will have to contend with banks, appraisals, inspections, and lots of red tape. The underwriting process for investment loans is more strict than with traditional owner-occupants.
There are also normally no commissions paid to a buyer’s or seller’s agent which means thousands of dollars in savings. The commission structure on multi-family properties that have tenants can be as high as 7%. So you may have to pay up to $14,000 in brokerage fees on a $200,000 property. Professional multi-family property buyers should not charge transaction fees. They also provide mail-away closings which is a wonderful thing for out of state owners.
Professional buyers including Wake County Home Buyers will buy the property as-is. This is important because multi-family properties that have been used as rentals over many years suffer significant wear and tear. An as-is sale will equal thousands of dollars in savings. Most companies will not do a traditional home inspection, which can be very invasive and disruptive to tenants. This is especially true if the tenant refuses entry to the inspector–a huge landlord headache.
Less Headaches At Closing
The construction style of these properties is a thing of the past. Many of them are 50+ years old. There is a lot of opportunity for judgments and title problems to pop up at closing. It is advantageous to work with a professional multi-family property buyer that has experience with this type of transaction.
Sell With Confidence
When you decide to use a professional multi-family property buyer in Raleigh NC, you will not have to worry about going through a roller coaster of emotions. There are no frustrating, middle-of-dinner phone calls asking if you are available to show your property. You don’t have to worry about tenants leaving their home spotless every day before heading to work, just in case there is a showing while they’re gone. You don’t have to worry about possibly running into a buyer’s agent or their clients or dealing with them asking you questions that you really shouldn’t answer anyway. You also don’t have to worry about buyers arguing with you over which furniture your tenants are taking and what they are leaving.
Selling to a professional buyer is less risky than selling to a homeowner. Professional home buyers are held to a higher standard of competence and are less likey to come back and say something was not disclosed properly. Experienced investors know that there will be problems with any property that is bought and have the infrastructure in place to handle those problems.
They will layout every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. You will also have lessened exposure to legal risks. You won’t have to worry about the buyer finding something you didn’t know you didn’t disclose or something they don’t like about the property or the neighborhood. Under most traditional real estate contracts, there is a potential for the buyer to sue you if they feel they didn’t get all of the information, or if they feel the facts were misconstrued. Professional multi-family property buyers already know the state of the property, and they are willing to take on that risk.