- March 15, 2017
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The process of selling your apartment building usually takes around 12 to 20 weeks. It can be longer or shorter depending on the specifics of the deal, however. The first thing we do is execute the listing agreement. Then we conduct a detailed analysis of property operations in order to uncover opportunities and determine the highest valuation possible. We will then create an attractive marketing package and flyer that we will send out to a list of potential buyers. We will send out an e-mail blast to our 60,000 clients in our database. Along with this online marketing, we will make phone calls and visits to those we think are the target market for your property, based on what they own and where their properties are located. Once interested buyers have signed a confidentiality agreement, they will have online access to password-protected data which shows rent rolls, utility invoices, contracts, et cetera. We will then conduct property tours and we will qualify the potential buyers’ experience and finances. Throughout the marketing, solicitation and property tours, we will report back to you on the status of our marketing activity. This report will summarize which buyers have signed confidentiality agreements, and we will show you what we consider to be the strongest 3-5 bids. We will then meet with you to discuss the bids. Finally, we will do a final phone or face-to-face interview round and help you select the buyer. This process puts the negotiations in a competitive environment, and makes the prospective buyer compete on terms as well as price. We typically play an active role in the due diligence process. On your behalf, we accompany outside inspectors and contractors to observe their investigations so buyers don’t try to overstate project deficiencies in an attempt to lower the offering price. We have found that if we accompany third parties at the property, it is more difficult for the buyer to make unsubstantiated claims. It also lets us know immediately if the buyer has found any real structural or environmental challenges. Closing is the final step of the process. This is typically run by the lawyers involved in the deal. We are happy to assist in this process where we’re needed. Selling an apartment building properly is a complex process and there are many ways for a deal to get off track, It is our job as your broker to make this process as smooth as possible.