How do I know the value of my small or medium sized multifamily property in today’s market?
NOT by checking Zillow!
For the sake of brevity, we’ll focus today on one small property–a duplex in St. Paul. Currently, Zillow.com has 440 Jayne Street valued at $154,531. Currently, InvestProp has this same duplex under contract for $184,000 less a 3% Seller Contribution,…so just shy of $179,000 to an FHA Buyer. Thus, even if you listed that property for free on Zillow or Craigslist and did all the negotiation, document preparation, and closing work yourself, you’d be short thousands of dollars. Currently, InvestProp lists full MLS properties for 5% with no admin or broker fees and will soon add other DIY options like FSBO and Available. In this example, doing less work you’d be better off by over $10,000 by not doing a thing and trusting InvestProp to get your small multifamily property sold.
On a related note, knowing the market means knowing how to negotiate in this market. InvestProp countered this FHA buyer $9,000 higher from their original offer in a “take it or leave it” scenario, and they took it. We knew we had the right property (1960s side by side duplex) and right market conditions (little supply)…so we played a stronger hand.
As Thomas Friedman said, “The World is Flat.” We know owners have limitless options to sell your property. Be careful before you jump right into trusting an online formula that may trail the market by tens of thousands of dollars…like it has on 440 Jayne.
Stay tuned with InvestProp as we roll out additional features to allow you to sell your property successfully for less commission
Contact InvestProp if you should have any questions.
–Brad Schaeppi,founder and CEO