Two ways to sell, and what each asks of you
| List with a multi-family agent | Sell to an investor | |
|---|---|---|
| How the price is found | Market exposure and comparable sales | One buyer prices the rents and the work; you compare more than one if you can |
| What you do | Prepare, show units to buyers, negotiate | Share the paper, let them inspect, negotiate |
| Cost to you | Agent commission and usual closing costs | Usually no commission; closing costs still apply and the price is usually lower than a full listing |
| Tenants | Showings are limited by the lease and the law (see tenants below); units may be occupied at closing | Often fine with tenants in place |
Neither route is better for everyone. Compare both with your own numbers: net proceeds for a two- or three-family and how cash offers compare. We cannot promise an offer from either.
What to gather before you list or call a buyer
- A rent roll (unit, rent, lease end, security deposit and where it is held) and copies of the leases.
- Twelve months of utility, repair and insurance costs, and the latest tax bills.
- Where each security deposit and any prepaid last month's rent is held. Deposits must be transferred to the buyer (MGL c.186 s.15B).
- Any lead paperwork: inspection reports, Letters of Compliance or Interim Control. See lead paint when you sell.
- The smoke and CO certificate from the fire department (steps).
- Your mortgage payoff and a request for the municipal lien certificate (how it works).
- A closing attorney. See do I need a lawyer to sell.
Tenants: what the law does and does not change
A sale does not end a tenancy. The buyer takes the building subject to leases, and the landlord must transfer each deposit with accrued interest. Do not try to push tenants out to make a sale easier; the rules are strict. Read selling with tenants in place and ask a landlord-tenant attorney before you send any notice.
What it will sell for
We will not guess a price for your building. Two- and three-families are priced off comparable sales of the same kind of building nearby, adjusted for rents and condition, and a multi-family agent can pull those. Public home value indexes mostly cover single-family homes and condos. Median values on our city pages are for all owner-occupied homes and are not a price for your building.
Taxes and costs to ask about
- Deed excise tax: $4.56 per $1,000 of price, normally paid by the seller (guide).
- Capital gains and depreciation: a rental can carry more than a home you lived in. See capital gains on a home sale and ask a CPA.
- 1031 exchange: if you plan to buy another investment property, the IRS sets 45 days to identify and 180 days to close. Decide before you sign a P&S.
If the building is full of belongings
Old buildings often hold years of tenants' and owners' leftovers in basements, attics and empty units. A cleanout can make showings and inspections easier. JUNKRUN is owned by the same people as Home Options MA. If you choose a cleanout, we may earn money from it. No obligation to use it. See JUNKRUN estate cleanouts. No obligation, and you can use any hauler.