To sell apartment building, find specialist agent - article from Beacon Journal
Avoid those who focus on house sales; listing for $3 million should get break on commission
Posted on Sat, Sep. 02, 2006
By Bob Bruss
Q: We are considering listing our 48-unit apartment building for sale. We have spoken with two Realtors. We would like to know what commission to expect to pay on a $3 million sale. The standard rate for houses in our area is 6 percent. One of the Realtors wants a flat commission. The other has some sort of pyramid-style system involving starting out at 10 percent and going down to 3 percent after a certain amount, all combined together. What guidance can you give? -- Ellen A.
A: You need a specialist who sells only commercial and apartment buildings. Stay away from agents who specialize in house sales. Real-estate sales commissions are negotiable, especially on $3 million income property sales. According to Real Trends, the average home-sale commission is now 5.1 percent, so your commission should be less than that. Interview at least three apartment and commercial-property sales specialists who sell apartments in your vicinity. Listen to each agent's listing presentation, including his/her quoted sales commission rates. Let each agent ``sell'' himself or herself to you, not necessarily based on the commission rate alone. Check out their references of recent sellers of properties like yours before selecting the best agent for your situation.
Posted on Sat, Sep. 02, 2006
By Bob Bruss
Q: We are considering listing our 48-unit apartment building for sale. We have spoken with two Realtors. We would like to know what commission to expect to pay on a $3 million sale. The standard rate for houses in our area is 6 percent. One of the Realtors wants a flat commission. The other has some sort of pyramid-style system involving starting out at 10 percent and going down to 3 percent after a certain amount, all combined together. What guidance can you give? -- Ellen A.
A: You need a specialist who sells only commercial and apartment buildings. Stay away from agents who specialize in house sales. Real-estate sales commissions are negotiable, especially on $3 million income property sales. According to Real Trends, the average home-sale commission is now 5.1 percent, so your commission should be less than that. Interview at least three apartment and commercial-property sales specialists who sell apartments in your vicinity. Listen to each agent's listing presentation, including his/her quoted sales commission rates. Let each agent ``sell'' himself or herself to you, not necessarily based on the commission rate alone. Check out their references of recent sellers of properties like yours before selecting the best agent for your situation.
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Tips for Being a Successful Landlord
In today’s apartment rental market there are several things that are “must do’s” for becoming a successful landlord. The reason you’re playing the real estate rental game is to have the check in your mailbox on the first of the month, right? Here are a few tips that can help you to achieve this with as little aggravation and frustration possible.
First and foremost is finding the right tenant to rent your apartment, house or other rental. This is the most important ingredient in the recipe. Checking the prospective tenant’s credit history to make sure they are paying their bills is one of the best ways you can screen. A tenant that pays their bills on time most likely will send you their rent on time. Establish a clear system on collecting rent, handling complaints from the tenant and how you will contact them if you need to gain access to the apartment.
Secondly, get all the important terms of the tenancy in writing. You have the option to have a basic rental agreement or draw up a formal lease. Whichever you decide, the important thing is to document the terms that you and the tenant agreed to. Clarify who is paying the utilities, the rental price and any other agreements made between you and your tenant.
It’s a good idea to stay on top of the repair and maintenance needs of your property. When you are notified of something that is broken or not working, repair it as soon as possible to prevent further damages. You may also lawfully enable the tenant to withhold rent, sue for injuries caused by defective conditions or move out without notice.
On a similar topic make sure you are carrying enough property and liability insurance to cover yourself in any situation. A well designed insurance program can protect your rental property from losses caused by everything from fire and storms to burglary, vandalism, and personal injury lawsuits.
I hope that this has been helpful to you. Just remember, as long as you follow these simple tips you will be on your way to a happy and fulfilling landlord future. Best of luck!
ABOUT THE AUTHOR: Eric Goldstein, associated with www.AllSpacses.com which Conveniently Connects All People with All Spaces in All Places, has been dedicated to the real estate rental market for over 8 years. He has assisted over 25,000 landlords with their renting needs. Any questions about renting apartments, houses or other rentals feel free to visit www.AllSpaces.com or email him at Eric@AllSpaces.com.
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