How to determine the best time to sell your multifamily property

April 26, 2023 | Sellers

Check out our expert tips for selling your apartment building for top dollar

Whether you’re making changes to your business strategy, preparing for a bigger investment opportunity, or getting ready to retire, it’s essential to determine the best time to sell your multifamily property with proper planning to maximize your return on investment.

Continue reading to learn the best time to put your asset on the market with the top four tips from our expert multifamily investment advisors.

#1: Time the market

When it comes to selling any kind of real estate, timing is key. While the market is notoriously hard to predict, there are signs you can look out for to help you identify a seller’s market—a time when there is more demand than supply of real estate inventory. 

One of the major indicators that the market has shifted from a buyer’s market to a seller’s market is when existing properties begin to sell for more than the replacement cost. While there will likely never be a huge divergence between existing property cost and replacement property cost, this indicator presents a good opportunity that you can take advantage of.

“When the market’s going up, your property value will continue to increase, and you’ll experience a smooth, easy transaction throughout the whole selling process,” explains Joe LaFleur, multifamily investment advisor and co-founder of 100Units. “The low supply of a seller’s market will significantly improve your ability to sell since there are less options for buyers to choose from.”

Learn more:
How carefully timing the real estate market makes you an expert seller

#2: Ensure all your affairs are in order

When you’re ready to sell your apartment building, make sure your asset is in top condition: resolve any nagging maintenance issues, consider a fresh paint job, parking lot improvements, updating landscaping, and anything else that contributes to the first impression that your property gives. 

“Make sure you have your finances in order before listing because buyers will ask for it. Also make sure the property is cleaned up and looks good because that’s what’s going to sell the building,” advises Sean McKenna, multifamily investment advisor at 100Units. 

When it’s time to sell, you must also have a due diligence package available for prospective buyers. Be sure to include lease agreements, rent rates, and all of the other pertinent information your buyer needs to make an offer on your asset.

#3: Price your property right

When you’re looking to sell an apartment building, choosing the right price is essential. Make sure you ask for the right amount by conducting a thorough comparable sales analysis. When you analyze the submarket, property condition, and cap rate of recent sales activity you will quickly see how your property compares.

It’s crucial to avoid overpricing — the longer your property sits on the market, the less attractive it will appear to prospective buyers. Working with an experienced multifamily investment advisor can help you choose the right price.

Additionally, make sure that rents are at or near market value. “As a seller, you’re leaving money on the table if your rents aren’t at what they could be because of the conversion. Your net operating income is what offers are based on, so if your net operating income is significantly less than what it could be, your sale price is likely to reflect that,” shares Mason Kreidt, multifamily investment advisor at 100Units. 

#4: Establish a relationship with a multifamily investment advisor 

It’s best to consider working with an advisor who has proven expertise working with multifamily sellers and an in-depth knowledge of the local real estate market before selling your property.

Choosing the right advisor can have a big impact on the speed, organization, and final value of your transaction. A multifamily investment advisor can also act as a professional liaison between you and potential buyers, and they’ll work with you to build a strategy to get the maximum value for your property.

Learn more:
The top questions to ask before selecting a multifamily investment advisor

Looking for help in figuring out if it’s time to sell your apartment building?

At 100Units, our objective is to help you achieve your long-term investment goals. Our multifamily investment advisors will lend you our unique perspective on your situation and provide you with real time market analysis.

We offer our valued sellers:

  • Marketing strategy
  • Network of buyers
  • Clear communication 

We’ll also collect, study, evaluate, and share market data on an ongoing basis to help you make timely and informed decisions. From determining the listing price to conducting the closing, we’ll facilitate a smooth transaction for you every step of the way.

Ready to sell your multifamily property? 
Find out what your property’s worth here.

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