What's The Best Way To Sell A Duplex That Needs Repairs?
Updated: Mar 9, 2020
I've been asked this question too many times to count. You have a multi-family property or a duplex that needs to be sold, and you're wanting to get the most money for it, in the least amount of time. Right? If that's the case, here's your guide to selling your duplex quickly and for cash.
The best way to sell a duplex that needs repairs is by selling to a Real Estate Investor. They have the experience, motivation, and (most importantly) cash to buy your property, even if it's in need of extensive repairs.
If you've owned a property for any amount of time, you've probably looked at different ways to sell it at least once or twice. I'll go over some of the main ways people sell their property's, and which way is the best overall method of getting your duplex, apartment, or single-family home sold.
Selling Your Duplex With An Investor
Selling your duplex to a real estate investor has a lot of perks, but also comes with a stigma. Many people unfairly categorize real estate investors as "scammers". While some investment companies probably do scam the people they work with, the same could be said for just about any type of business. As long as you work with a reputable real estate investor, you're probably going to be happy with the outcome. After all, you're the one who has the power to accept a deal, or deny it!
Here's how selling to a real estate investor usually works:
You get in touch with an investor, and schedule a phone call.
On the call, the investor will ask you questions about your property and decide if it's something they might be interested in purchasing or not
If the investor is interested, they will schedule a showing to come see the property.
After the showing, the investor will have the "crunch the numbers" and get back to you. If they're interested, they'll get in touch. Sometimes this can take just a few minutes, sometimes it takes a few days.
If the investor decides they're interested in your property, they'll give you a call and make you an offer. Since this is an investor, you have the ability to work with whatever terms you want. Some investors are even able to pay cash.
You negotiate a fair price with the investor, and they pay you cash!
If you decide to sell your property to an investor, you won't have to pay any realtor fees. That is one HUGE advantage to selling to an investor. Realtor fees can really start to add up. For instance, the typical realtors fee is 6%. If your property has a value of $400,000, the fee you'll have to pay the realtor is $24,000!
When you sell to an investor, there are NO fees. On the above example, you wouldn't have to pay an outrageous $24,000 fee. That means more money in your pocket, instead of a realtors pocket.
A major advantage to selling to an investor is the fact that most investors are willing to purchase your duplex or other property-type in literally ANY condition. An investor will make you a fair offer, based on the value of your property, minus the amount of work that has to go into your property in order for it to be fixed up.
If you have a property that you don't want to fix before you sell it, then selling to an investor is a good choice.
Selling Your Duplex By Owner
Selling your property by owner means exactly that- YOU are the one who does all the work to get your property sold. There's no one helping you along the process, except the trusty ol' internet.
There are advantages to selling your property by owner. One of these benefits is the fact that you won't have to pay a realtor a commission when your property sells. This will save you a lot of money.
For sale by owner is also a great way to be in control of the process. You're the one who is in contact with any potential buyer, you schedule the showings, you write the contracts, you accept or deny offers that come in.
Selling your property by owner is not for everyone, though. If you don't know much about real estate and aren't willing to learn, don't have much time on your hands, or simply don't know where to begin the process, then selling your property yourself may not be the best option.
For sale by owner is very similar to selling to investor, except that when you sell to an investor, they take care of 95% of the work that you would otherwise have to do. They take care of all the paperwork, and make the process simple for you.
Selling Your Duplex With A Realtor
As I mentioned above, selling your property with the help of a real estate agent always comes with fees. Often, these fees can add up to tens of thousands of dollars.
With that being said, selling your home or duplex with a realtor does come with its advantages. When you sell your property with the help of a realtor, they will take care of any marketing of that property in order to get it sold.
A realtor will also take care of most of the paperwork and contracts that need to be signed. If you are the type of person that doesn't want to do any of the work of getting your property sold, then working with a realtor or an investor is probably the right choice.
One major downside of working with a realtor is that they typically will only list properties that are in live-able condition. A realtor doesn't want to list a property that needs work, they want to list property's that are ready to be moved into. If you have a property that needs work, then selling with a realtor is probably not an option for you unless you plan on fixing it up prior to the sale.