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
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
Systems and mechanics should be in good
operating condition and any repairs/replacements
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
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.