There are income property seller mistakes or errors that some owners may not even know occur! Or, if so, they may stick their heads in the sand and plead, “There’s nothing I can do!”
I have been fortunate to help buyers who wanted to buy a condo or a 4-6 bedroom house near Western for an investment, for their son or daughter, and have friends move in. That way, to build equity or cover some of the expenses of getting an education.
Two wanted a medium—to high-end condo near Western for one of their children, and they could have a friend move in.
I have seen these mistakes before, but these buyers had not, and the most common comment I heard was :
“Do they want to sell this building (condo)?”
The most significant drawbacks to why we did not submit or even consider submitting an offer.
The listing Realtor never called us back! Wow, you, as an owner and your Realtor have a $677,000 property, and they don’t call you back after three attempts? (By the way, that building is still listed for sale!)
My clients and I arrive, but can’t get into the rooms. The tenants say they were not notified or given enough notice. Whether the tenant is correct or not, it would behoove you as a landlord or the Realtor to ensure that ALL tenants are notified and reminded before a showing. Either by email, text, in person, smoke signals, notice on the door, telegram, fax, Morse code, or even Pokémon!
In some 4-6 bedroom houses, we can only see one or two bedrooms because our keys don’t work!
The stated rental income or the comment “If fully rented, the potential rent is” is unrealistic. In my experience, tell it like it is. Someone willing to buy your property is not dumb or lazy, and they want real numbers, no B.S.
In one condo we saw, the fees were off by $113.00. There was one parking spot, not two, as indicated!
Some will not cooperate with a Fire Marshal’s report or ESA Certificate. Some are not legal duplexes or triplexes. A Realtor or owner tries to tell me, “Don’t worry. It’s been like that for years; nobody will ever find out.” Yeah, right!
Most Realtors did not have much experience with investment properties. Residential listings, investment listings, and even condo listings are pretty different. They can be more complex, and they require a different skill set to handle.
Diligence Should Not Be Difficult!
The above are just a few challenges. I haven’t even reached the offer stage yet!
Also, incorrect information was provided regarding property size, room sizes, taxes, outstanding work orders from the city, city violations of the building code, and three mortgages and liens on the building!
My clients and I cannot change the condition or situation we are dealing with, so it is unlikely any emotion will be helpful. I can’t change the obstacles; that part of the equation has already been set. However, how I approach them to find a solution is something that my clients and I can control!
So, ultimately, my clients found what they were looking for at a price point they were happy with.
If it sounds like I am ranting against the disorganized, lazy, and unwashed people who represent property sellers, I am. I also praise and thank the professional who is organized, diligent, has the correct information, and is willing to make an effort to ensure a transaction gets done.
Preventing and fixing income property seller mistakes should not be a hassle!