Most Kitchener Waterloo real estate agents have no idea how to sell multi family buildings effectively. As I always tell my clients and subscribers, investing in real estate is a COMPLETELY different business. It’s not the same as selling the perfect home with the ‘white picket fence’ to an everyday buyer.
Kitchener Waterloo Real Estate Agents SUCK At Selling Multi Family Buildings!!
Selling a multi family apartment is a business transaction, and hiring the every day realtor that you see on the back of buses and park benches (a tacky decision I might ad) is mistake number one. Hiring the wrong realtor in this sandbox can literally cost you tens of thousands of dollars on the sale of your property.
Show The Numbers
Multi family buildings are ALL about the numbers. As I showed in my video above, Kitchener Waterloo real estate investing buyers need to see the numbers in order to come up with a fair market value before being able to give an offer.
Financing a multi family building is VERY different than a residential home. Determining the value is very simple and straight forward.
It all comes down to cap rate.
For example, NOI / the areas cap rate = the value of the building. PERIOD!
This is how commercial appraisers determine value and decide whether to give the buyer a loan on your building or not. If the cap rate doesn’t match up with what they’re looking for, NO mortgage for the buyer!
Which means NO SALE for you, the seller.
The biggest mistake that Kitchener Waterloo real estate agents make is not providing the numbers on their listings. This comes down to knowledge and experience of these realtors.
When realtors aren’t investors themselves, they have NO IDEA what a buyer wants to see in a listing.
If you want to sell your building for top dollar, you need to be working with an expert who also walks their talk. You want a ‘specialist!’
When looking for realtors to work with, especially when it comes to dealing with multi family real estate as it’s such a sophisticated business, the first question should be, “Do you own any investment properties?”
Question number two is, “how many?”
In my opinion, your realtor should own TEN investment properties. With a bare minimum of six before even considering speaking with them!
When a Kitchener Waterloo real estate agent owns ten or more properties, it means they are an ALL STAR! A top 1% investor in Canada. These are the realtors you want to work with!
Because they GET it!
Give Lots Of Pictures
Another common mistake I see Kitchener Waterloo real estate agents making when listing multi family properties is not providing enough pictures.
Now I get it, multi family buildings aren’t usually the prettiest things to take pictures of. But it doesn’t matter!!
The buyer needs to see what the building looks like before wasting their time to come and see the property.
Remember, multi family buyers are VERY sophisticated investors and Kitchener Waterloo real estate is very attractive to Canadian investors, country wide!
If your realtors’ listing has a crappy picture of the front of the building and nothing else, coupled with NO financials posted in the listing (as over 95% of listings do), your listing will get overlooked.
These buyers will move onto the next listing without a second hesitation.
As I showed in my video above, because of my detailed financial package that I make for my Kitchener Waterloo clients, I sold that particular building in just 2 DAYS!!!
Now that doesn’t happen all of the time, but when you give buyers everything they need to form a decision things move fast!
Price Your Building Correctly!
The number one reason why most building sit on the markets for 60, 100, 150 days on end all comes down to pricing. Period!
We can give all of the financials and all of the pictures we want but if your building is priced too high, not even the best specialized realtor can find you a buyer.
This is why working with an expert investment savvy Kitchener Waterloo real estate agent is even more important! They know how to price properties correctly.
Why? Because they’re investor buyers themselves! And they also know the formula (that I stated above) for pricing commercial real estate (6 units or more).
If you’re reading this blog, it likely means that you’re a mutli family owner who’s thinking about selling in the near future.
I always urge my clients to speak to their specialized realtor at least 12 months in advance before selling to get their take on what the building needs.
Remember, your specialized realtor is not just your realtor. They’re also your consultant!
I can let my sellers know exactly what colours to paint the common areas, how to get problem tenants out NOW so we can get the rents up which directly increase the value of the building and so on.
If you’re thinking of selling your Kitchener Waterloo multi family property, I look forward to working with you – and making you more money than any other realtor could!
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