Seller Property and Document Prep Before Going to Market

In a perfect world (which doesn't exist), the below would be all the documents and physical items that would be assembled by a seller prior to going to market. By getting these items in order ahead of time, it makes for a far smoother marketing and contract period.

Having these items ahead of time also allows the broker to make the buyer feel more comfortable about submitting a shorter due diligence period since all due diligence materials will be handed over the second a PSA is signed. The buyer doesn't have to wait for key materials to execute the purchase.

Not all of the items below must be in place prior to going to market. It's just a wish list, nothing more. The more you have, the better. It's like buying an exotic sports car, the more maintenance records and background info on the car a seller has, this will oftentimes fetch a higher sale price and have more offers.

?These Documents are Requested Prior to Marketing for Sale

·??????? Income statements and/or tax returns for the property for trailing three years, and Trailing 12 months. Also, month to month for the last (2) full calendar years and YTD.

·??????? Current rent roll showing unit number, rent, deposits, start/end date, tenant name, other recurring charges, pre-paid rent

·??????? Report for rent concessions that will continue past closing

·??????? Utility bills paid (water, sewer, trash, gas, electric), telephone (including cell phones for any company paid plans), and cable television, for the prior three (3) months.

·??????? List of capital expenditures done over the last 5 years by year (or length of time you've owned if shorter

·??????? Copies of all surveys, ALTA or otherwise; plats, site plans, building plans, and as-built plans.

·??????? Copies of marketing materials to include floorplans, brochures, property logo, website info, pics

·??????? Perform any needed pressure washing, annual flower planting, roof cleaning, necessary repairs, frequent blowing of the grounds, property signage is vibrant, new mulch, clean water retention areas, office/clubhouse spotless, model spotless

?Need Prior to Contract Execution with a New Buyer (Sooner the Better): These are mainly items that would only be delivered to the successful buyer.

·??????? Any vendor or service contracts (lawn, pest control, laundry, termite bond, equipment leases, pool, etc.), including all contact info and any verbal arrangements and agreements for service.

·??????? Make sure all open permits are closed

·??????? Most recent property tax bill

·??????? Past Environmental reports, engineering reports, or physical inspection reports

·??????? Current delinquency report and detailed A/R aging report showing delinquencies

·??????? Copy of all current resident leases in electronic form, including Rules & Regs (if applicable), addendums, and resident application packages.? Include any employees that live on property and any related concessions.

·??????? A detailed schedule setting forth the names of all present employees, their compensation and benefits such as salary, housing, health insurance, utilities, vacation, retirement, etc.

·??????? The existing title insurance owner’s policy and lender policy, if any, together with copies of all existing exceptions, and any unrecorded agreements affecting the Property.

·??????? A list of all threatened, pending or ongoing insurance claims, lawsuits, or outstanding judgments

·??????? Insurance loss runs for previous 5 years or time of ownership if less than 5 years

·??????? Personal inventory list for office, pool, model unit(s), fitness center, all common areas and shop.

Beau Beery

Multifamily Advisors

[email protected]