Selling an apartment building requires knowledge of several complex processes. It is not the same as selling a single-family property, and there are plenty of areas where a first-time seller can make mistakes. In part one of this series, we discussed five things apartment sellers should be aware of before putting their building on the market. Today we discuss part two— five more things to know about selling.
Not All Site Visitors Are Potential Buyers
Don’t take foot traffic as a positive or negative sign. Not all visitors who view a property are interested in buying. Some people are just curious, while others misunderstand the advertisement. There are even “eternal browsers,” people who are wishy-washy about buying.
Agents Do More Than Find a Buyer
Finding a buyer is one of the simplest tasks in selling an apartment building. However, this is also just the start of the actual work for a realtor. Once someone indicates his interest in the property, it is the start of the negotiation process for the building’s price.
The realtor must provide his client with the most favorable price conditions, which requires tactfulness, diplomacy, and knowledge of when to push a point and when to fold. Furthermore, when the buyer and the seller reach an agreement, they must notarize the transaction and register the buyer as the new owner, which involves paperwork.
Notarization Is Just an Intermediary Step
The notary only certifies the transaction. He checks the legal capacity and identity of the parties involved, the ownership of the building, and the terms of the transaction. The transaction might still be broken after notarization. The seller will only receive the money after receiving the relevant documents from the Federal Registration Service.
Registering Property Rights Can Take Days
Registration is a long process that could take up to three months. Citizens cannot just submit and receive documents, especially when registering property. The number of first registration applicants, the backlog from previous batches, and the complexity of the building’s registration details will also affect the process.
Sellers Cannot Pick up the Money on Their Own
The apartment buyer does not hand over a check or directly deposit an amount to the seller’s bank account to pay for the property. Instead, he puts it in a bank box before the notarization. Neither party can withdraw the money independently; they must both be there for the transaction.
This measure guarantees both party’s protection at different stages of the sale. It prevents sellers from shortchanging the buyers during the registration, and it prevents buyers from committing fraud or holding the amount hostage. When calculating, it is vital to have reputable realtors who can stand as third-party auditors of the terms of the transaction.
Conclusion
Selling a building can be a lucrative venture for both the buyer and the seller. However, the process involves lengthy dealings with various firms and government agencies, and it can be disheartening to first-time sellers or buyers. It is why multifamily real estate agents are essential; they have the specialized knowledge and experience for these types of sales.
Learn about the ins and outs of selling buildings from us! Buying Apartment Buildings has everything you need to get into multifamily real estate. Contact us today for more information!