Canton Ohio Apartment buildings present some unique challenges when it comes to selling. It involves a different process than selling a house does, and that means certain steps become more important. In fact, it can be a very intimidating and overwhelming undertaking for those with little experience in this area. Here, then, are a few of the best ways to sell an apartment building in the Canton area.
Get the Financials in Order
This important step to sell an apartment building in the Canton Ohio area should be a priority on the checklist of things to do. For it will be a concern to both investors and their lenders. In fact, this should be taken care of long before you decide to market the property.
Banks will want to examine the property’s profit and loss statements for the preceding 12 months. So you’ll want to do your best to have the numbers indicate an upward trend with respect to rents and expenses. In addition, the apartment building’s occupancy levels will be important. So you need to get the financial documents in order that will make the property appealing to investors.
If you begin all this early, you even be proactive in cutting expenses to make the apartment building look more profitable to prospective buyers. The things you can do include:
- Hiring a better, more efficient management company
- Billing for back utilities
- Lowering property taxes doing things like installing low-flow toilets and/or high-efficiency lighting
Make It Look Good
Next in importance to sell an apartment building in the Canton Ohio area is attending to the building’s physical appearance for that all-important first impression. Not only does the apartment building have to look financially attractive on paper, but it also has to actually look good to potential buyers. So here’s just some of what you can do to help the appearance:
- Take care of the general, overall cleanliness of the property
- Organize and clean the utilities room
- Take care of the basic landscaping
- Get rid of all hazards and clean up the dirty areas of the property
- Touch up chipped or faded paint
- Make sure the building conforms to local building code, i.e. no illegal add-ons
Just keep in mind not to spend more on sprucing up and repairs than you can recoup at sale time. Know your target price, and do the research to see if you’re likely to get it.
Market Well to Sell an apartment Building in Canton Ohio
Finally, if prospective buyers don’t know you have a building for sale, then there’s no way they can show any interest in buying it. And that usually comes down to effective and sometimes creative marketing. The things you can do to improve the marketing process include:
- Determining the best way to handle showings, which can be considered an aspect of the marketing process. You could, for example, select a handful of your cleanest and most personable tenants, ones you have a good relationship with, and their units to focus on at showings.
- Making sure that the management company is aware showings will take place. And be sure to incentivize doing a good job.
- Selling directly to another investor will net you the highest return and sale price. This is a great opportunity to use seller financing.
- Investors understand multi-family properties, and if you are willing to participate in some of the financing, then you have the option of getting the highest offer price possible.
So the best ways to sell an apartment building in the Canton Ohio area are to get the financials in order, to make it look good, and to market well and source other investors. Really, though, this is just a portion of all you’ll need to do to sell an apartment building. Selling an apartment building can be a lengthy and complicated process, and that’s why it may be best to sell directly to another investor who understands the numbers and the intricacies involved in such a complicated transaction.