Obviously, the process of selling a multi-family property is quite a bit more complex than that for selling a single-family home – and usually for the obvious reason that a lot more people are involved. In addition, sellers of multi-family property have to follow certain rules and regulations in order to be legally compliant. Above all, you don’t want to open yourself up to the possibility of being sued. So to help you out, here are some tips for selling a multi-family property in Chicago.
Prepare the Property for Sale
Properly preparing a Chicago multi-family property can actually make or break the sale. It’s that important because investors interested in buying will want to know that the property has been maintained. And if it looks well kept and well maintained, those investor buyers will be much more likely to make an offer (and one nearer your asking price).
The areas you should address in preparing your multi-family property for sale include:
- Common areas – These should be cleaned up and repainted when necessary. These areas are often highly visible, so don’t skimp here.
- Curb appeal – Be sure to create a great first impression. Trim bushes and shrubs, and weed and mulch beds. Also, replace any siding and trim that needs it.
- Doors/locks– Doors seem to take a lot of abuse in multi-family properties. It’s well worth the expense, then, to repair or even replace unsightly entry doors.
- Parking areas – The appearance here does matter, so check to see if you need to repaint lines and/or numbers.
Review Leases and Related Documents
This legal aspect of selling a multi-family property in Chicago is extremely important, so it’s always a good idea to enlist the aid of a real estate attorney with experience in this area. In any case, though, you need to review the leases before selling. You absolutely must keep tenant rights in mind because, depending on terms, you may or may not be able to sell while units are occupied.
You also need to be familiar with the terms of leases in order to answer the questions buyers will surely ask. The questions include:
- What are the exact terms of the leases?
- What are the rent amounts for different units?
- What does each unit’s rent include?
- Are you holding security deposits, and what are the terms for deposits?
- Are any of the rents government subsidized?
Use an Agent with Experience in Selling Multi-Family Property
To help you navigate the complex process of selling a multi-family property in Chicago, you should consider hiring an agent who has experience in this area. Using a top agent is important for selling any kind of property, but especially so for selling a multi-family property.
You can check agents’ profiles online, as well as their selling record. But nothing beats a personal interview, which should include at least the following questions:
- Can you provide contact information for the former owner of a multi-family property whom you represented for a sale?
- What is your method for handling a showing when a property is tenant occupied?
- How do you handle uncooperative tenants?
- How much notice do you give?
Asking the right questions and getting the right answers can greatly increase your chances of getting an agent who can represent you well.
So if you are trying to sell a multi-family property in Chicago, just follow these tips to get a good price and avoid the risk of being sued. And if you are a newbie to selling a multi-family property, it might be a good idea to enlist the aid of qualified real estate professionals. And that’s where we can help.