Selling your multi-family property to an investor is becoming increasingly popular. There are many advantages to selling your property to an investor. But there are some things you should know before you complete the sale. To help you out, this blog gives you five things you should know about selling your property to a New Jersey investor.
Understanding the Buyer
Professional property buyers in New Jersey, New Jersey typically close faster than traditional multi-family buyers, and usually pay full in cash. Traditional multi-family property purchases usually require qualifications from banks, mortgage underwriting time, property inspection time and the buyer may not end up qualifying in the end. There are also normally no commissions paid to a buyer’s or seller’s agent which means thousands of dollars in savings. The usual commission is 3% per side, so if you sell your property for $200,000, you would have to pay $12,000 in commissions alone! Professional multi-family property buyers also may not charge transaction fees; if they do, they are extremely low in comparison to the commission or closing costs you would have to pay otherwise. They also provide mail-away closings which is a wonderful thing for out of state owners.
No Preparation Necessary
Professional property buyers in New Jersey will usually purchase real estate as-is. As a seller, this means you do not have to worry about repairs before closing or any other additional expenses you were not planning on. There are some companies that do not require inspections which makes it a truly as-is transaction.
Professional multi-family property buyers are in it for the investment. They are not expecting to move into the property on the day of closing. Most multi-family property buyers will allow a move-out timeframe after closing to allow your tenants to relocate at their own pace. This is extremely helpful, especially with such quick closing timeframes. Also, you may not even have to clean the multi-family property when you leave. Your tenants can simply pack their personal items and furniture they want to keep and leave the rest.
Sell With Confidence
When you decide to use a professional multi-family property buyer in New Jersey, New Jersey, you will not have to worry about going through a roller coaster of emotions. There are no frustrating, middle-of-dinner phone calls asking if you are available to show your property. You don’t have to worry about tenants leaving their home spotless every day before heading to work, just in case there is a showing while they’re gone. You don’t have to worry about possibly running into a buyer’s agent or their clients or dealing with them asking you questions that you really shouldn’t answer anyway. You also don’t have to worry about buyers arguing with you over which furniture your tenants are taking and what they are leaving.
Selling to a professional multi-family property buyer is extremely straight forward. They will lay out every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. You will also have lessened exposure to legal risks. You won’t have to worry about the buyer finding something you didn’t know you didn’t disclose or something they don’t like about the property or the neighborhood. Under most traditional real estate contracts, there is a potential for the buyer to sue you if they feel they didn’t get all of the information, or if they feel the facts were misconstrued. Professional multi-family property buyers already know the state of the property, and they are willing to take on that risk.
We hope you enjoyed our article on 5 things you should know about selling your multi-family property to an investor. If you are interested in learning more about how to sell your multifamily property, please contact us anytime. Thank you for reading, we are always excited when one of our posts is able to provide useful information on a topic like this!