Receive the highest dollar amount when selling your multi-unit property
If you live in one unit and have a tenant in the 2nd unit, here are a few simple tips that will help you achieve the highest dollar amount when selling your property.
1- Speak with the Realtor that is selling most of the homes in your neighborhood. He or she will be able to help you determine what upgrades or updates should be completed prior to selling and what will bring a higher return on your investment. There may be some things that you think you should do when in reality, it will probably not be that important to potential homebuyers.
2- Do a walk through with your Realtor and look at your property through a buyer's eye. Are the rooms light and airy? Do you have bulky furniture, or do you have extra stuff lying around that you really don’t need to have out? If so, thin it out and remove some of it. Our homes in the San Diego Metro neighborhoods are on the small side, so we want to make sure that we can create an illusion for a potential buyer. We want them to move in visually with their furniture when they first see the property.
3- Do a walk through with your handyman as well. Are the interior and exterior walls showing signs of deterioration? A fresh coat of paint will do wonders. Do you currently have dark or bright walls? Colors in the home can be tricky since certain bright or dark colors are very personal. Again, lighten things up. Have the windows professionally cleaned, inside and out. Only have things cleaned up that need to be cleaned up.
4-The same thing holds true with the outside of the property. Look at the property’s curb appeal. Does it have one? If not, create it. Clean out weeds, plant a few low tolerant, pretty plants to add a splash of color, add a little mulch if needed. Trim some of the trees if needed, but please make sure, not too much. You want to make sure that they are full but tidy.
5- If you have tenants in the 2nd unit, you may want to give them a 30-day notice. What we have found in the past is when tenants find out that you are going to be selling the property, they will typically say that they will be ok with showing the property to potential buyers. In reality, what happens is that they become annoyed with people coming in and out of their space, and they become very irritated. The unit will never show as well as if it were vacant or even if you lived there. We typically recommend staging vacant properties but have found that when we have to choose between a messy tenant or a vacant property, we will go with the vacant property. Tenants are not motivated for you to sell, so they are never motivated to keep the place neat, clean and show ready. What we have found is that you will always sell for a higher dollar amount without a tenant in the property.
6-At this point your Realtor would have most likely started pre-marketing your home to their database of potential buyers, and other Realtors. There should be a buzz going on about your home and people waiting for it to hit the market. In the Metro Neighborhoods of San Diego, if you have priced your home correctly and have done all the steps mentioned above, you should see an offer within the first two weeks.