PREPARING INVESTMENT PROPERTY FOR SALE

  • Assess
  • Look at low sales and high sales and estimate the difference in price relevant to Cap rate, Gross Rent Multiplier, and square footage. Determine your target price. Also take note of the difference in time on market between properties with good visual appeal and those needing attention.
  • Determine what is the dollar value on your property between its present condition and potential best price.
  • Decide what you are willing and able to do.
  • Prioritize
  • Curb appeal matters to tenant prospects and therefore to buyer prospects. Do not overlook lighting and trash area.
  • Roof and landscaping are part of “a.”, but specifically should have checkup, fixup and cleanup effort.
  • Systems and mechanics should be in good operating condition and any repairs/replacements documented.
  • Interiors are also a reflection of tenancy. See Tenant Management
  • Create understanding with manager(s) of their needed participation and support. Often prospective investor buyers will visit a property “unofficially”,
    and the chatty manager who engages the tenants may not edit his words to others.
  • It can be worthwhile to advise tenants of the sale and engage their cooperation by offering a payment to them for their cooperation upon close of escrow. This is especially effective in the sale of single family or small complex properties.