“Truth is confirmed by inspection and delay; falsehood by haste and uncertainty.”” Tacitus

When I represent a client on the sale of a multi-unit building, in most cases, potential buyers don’t get a chance to take a look at the inside of the building. as they would with a single family home. This makes the inspection an important part of the sales process allowing the transaction to continue.

A FEW IDEAS:

1) GET THERE EARLY. Many potential buyers will also be there early, so by being there first, you can look around to see if there is anything to make the property look bad. Items like trash around the property or clutter can ruin the look of a nice building.

2) REMIND THE TENANTS ABOUT THE INSPECTION Remember, this inspection is for you, not the tenants. Be as courteous as possible, maybe bring donuts. Remind them about the inspection, in case they had forgotten.

3) GIVE NOTICES THE DAY BEFORE. The 24 hour notice keeps it all legal, and removes the excuse, that they weren’t told about the inspection.

4) SHOW YOUR NICEST UNIT LAST. This will leave the potential buyer with a good impression of the property.

5) ASK THE BUYER OR THEIR AGENT IF THERE ARE ANY QUESTIONS. If you don’t know the answers, you can research the information and get back to them. This shows sincerity.

WHAT’S NEXT: Most tenants will pay a licensed general contractor for a professional inspection. This is paid for by the potential buyer, and they choose their inspector. The inspector will create a booklet for the potential buyer which they may share with the sellers and share with the buyer. As a broker, I usually request a copy for my file, and to determine the voracity of any claims for repairs. When I represent a seller, we usually include an “as-is” in the counter offer indicating the seller will not do any repairs. That being said, the time after the inspection is almost always a point of negotiation and I always prefer a dollar amount credit, instead of having my client do the repairs themselves. Having the seller do the repairs can create even more negotiation as to the scope, quality and completeness of the job.

GO TO ESCROW: After the inspections are done, and everything is agreed upon, you can open the escrow. Make sure the deposit is deposited into escrow as agreed and then that you, as seller, have completed your contractual obligations. Next make sure you stay mindful of the date for release of contingencies. After that occurs you know their deposit is at risk if they decide to cancel.

Hopefully, every transaction you are involved with will go well, but that’s our job. As brokers, we are hired to make sure the transaction goes smoothly and as agreed and closes on time!

“Don’t let what you cannot do interfere with what you can do.” John Wooden

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.