The simple answer is you could. See below for a complete explanation of the process.
First, what benefit is there in us buying your property? Simple.
- No inspections, no repairs, no headaches of going back and forth
- We can still pay you top dollar, and sometimes even more than you would get after fees and commissions from a listed property
- No commissions or extra junk fees
- We are completely transparent and handle all the legwork and paperwork
- We will set up a one-stop-shop property viewing with you or, if you don't want the headache, we can set it up directly with the tenant(s). We view it as a property management company so to not spook your current residents.
- We are local and have a long-standing reputation in the community for being honest and trustworthy so you can be confident every step of the way
If you want to go through the process of listing and selling, it often includes:
- Having a realtor come out and talk to you
- The realtor will come back out and have to get in your units for pictures
- Then they will need to get all the information about the property and about each unit, current balances, vacancy, leases, rent amounts, disclosures, etc.
- The realtor will then list the property and put a sign or a couple signs up on the property that it is for sale (this may freak some tenants out)
- Interested parties will contact the realtor with questions and schedule showings
- You will need to set up a showing to go in the units with the residents so the interested buyer can see the units
- The buyer will have more questions and concerns that you will need to answer
- You will repeat the showing process for every interested buyer or tire-kicker
- When someone makes an offer, the realtor will present it to you for you to counter, accept or decline.
- When you accept the contract, typically there is a due-diligence period where the buyer will have 30-90 days to inspect, look into zoning, get surveys, test wells or septics, gather more information, request further showings and find funds for the purchase. During this time, the buyer can back out of the contract at any time for any reason
- After inspections, surveys and any testing, the buyer will either back out of the contract, accept the findings and move forward or request repairs or an adjustment of the contract.
- You will go back and forth until you reach an agreement for one of those paths. If you have agreed to repairs, you will be responsible for getting the repairs done by the timeline provided. If you terminated the agreement, you will need to start over with the showings.
- Approximately 3 days before settlement, the buyer's financing should be approved or denied. If it falls through at the last minute, the contract will have to be extended for another 30-90 days or you will need to terminate the contract and start over with showings.
- Once you get to settlement, you will sign all your paperwork and settle the property. There will be fees. Typically, in a listed property, commissions are between 3% and 5% for larger properties. That means for a 5% real estate commission, you will have $50,000 come out of a $1M sale price. You will also have transfer costs, settlement costs and any other fees that are applicable by the real estate brokerage or that were agreed upon.
Another thing to consider is that this is a multifamily or multi-unit property and there are far less buyers of these properties in the market. This means that you may find yourself having your property sit on the market, still having to run the management, for 30-120+ days. This could also include price cuts or extra work needed to the property that you are trying to sell.