Quincy Multifamily Sales & Rental Market Report
Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success. Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents? Is now a good time to sell?
Here is Quincy’s multifamily sales and rental market statistics for the last 6 months.
Total Multi-Family Listings SOLD: 80
Average Living Area by Square Feet: 2,523.00
Average Listing Price: $642,735 (What seller asked for the property)
Average DOM (Days on Market): 45.11 Days (How long it took to sell)
Average Sales Price: $632,778 (What buyers actually paid for the home)
Average Rent for 1 Bedroom Units: $1,445
Average Rent for 2 Bedroom Units: $1,772
Average Rent for 3 Bedroom Units: $2,133
Average Rent for 4 Bedroom Units: $2,533
Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!
Please call us directly at 617-297-8641, for custom reports or questions above the data provided.
Hi guys. Willie Mandrell with the Mandrell Company and today I want to talk to you about five things that you must do prior to selling your multi-family property, your 2- to 4-unit residential or larger investment property. Here are five things that you must do or consider prior to putting that property on the market.
Number one, and the most important thing, is keeping your tenants informed. Nothing can spoil a sale faster than having a tenant who was uninformed about the sale and now objects to that sale, is uncooperative in terms of letting potential buyers in or coordinating with your realtor. You really want to keep your tenants informed about the sale and educating them about the process prior, letting them know that if they’re under lease currently, their leases are going to be respected by the new buyers. If they are worried about rent increases, having that conversation with them prior.
I think the most important thing is also informing them about showing times. We’re going to be having an open house on Saturdays and Sundays from 11 to 1. The realtor is also going to be contacting you for showings in between on Tuesday nights or Wednesday nights. We’re going to try to keep it to a minimum, as not to disturb your quality of living. We don’t really want to interrupt your dinner time or special family events. Keeping that open line of communication with your tenants is going to help the sale move a lot more smoothly than having them uninformed. Making sure you keep your tenants informed, number one.
Have a pre-sale inspection. This is not an absolute necessity, but it can really help move the sale along. If you have a home inspector come in prior to actually putting the house on the market, the home inspector will tell you which appliances are not working correctly, which plugs are not grounded, does your roof look a little older, does the foundation need some type of pointing? If you have a pre-sale inspection, you can learn a lot about the property that you might not have otherwise known, and give you an opportunity to address some of these issues prior to putting the house on the market, and can make the sale go a lot more smoothly than having the reverse happen and having the buyer do the home inspection, and then them coming up with issues and the potential sale falling apart later on.
Number three. Check your smokes. If you are operating with a two- to three- or four-family residential property, the sale cannot take place unless the Boston or local municipal fire department comes in and assures that your smoke detectors are in the proper working order and the proper position within the home as well. Making sure that you’re going around and checking your smokes, that they’re ten feet from every bedroom, that if you own a three-family or above, that the hallways, the common area, the back and front hallways, plus the basement are hardwired to an electric panel. Talk to your realtor about the requirements for the smoke inspection. They are most likely going to coordinate with the municipality, the local fire department and make sure that smoke inspection happens for you. Making sure your smokes are in good working condition, because the sale of that property will not happen if they are not.
Number four, very important as well, talking to your CPA about the sale of that property. If you’re selling that property, are you taking the cash and doing something with it? Are you cashing in? Is it closer to retirement? Your CPA is going to be able to advise you on the tax consequences. The federal government wants their money. The state and local governments also have a stake in the sale of your property as well. Talking to your CPA will give you a good understanding of what’s going to happen with the cash after the sale of that property. It’s something you really want to do and really understand prior, so you can make accommodations. Maybe you want to minimize your tax liability, and talk to your CPA about a potential 1031 exchange, an exchange from one investment property to another. Talking to your CPA is very important.
Last but not least, is you want to talk to an attorney, a good attorney. If you don’t have an attorney that you work with, not everyone does, you can get an excellent real estate lawyer or attorney suggestion from your real estate agent. We, as real estate agents work with attorneys on a regular basis, and we can refer you to someone good that’s in your area that knows your real estate. The reason you want to do that is you really want to have a relationship because as you’re going along and there’s certain paperwork, the offer form, the purchase and sales, the closing itself, the attorney might want to get power of attorney to sign for you at the closing, so you don’t necessarily need to attend. There’s a lot of legal aspects of selling property that you want to talk to your real estate attorney with as well.
THere’s the five things that if you do these five things, you’ll be in very good shape to have your sale move smoothly. Keeping your tenants informed, getting a pre-sale inspection, check your smokes, talk with your CPA, and hire a lawyer. If you do those five things, you’ll be in very good shape for a smooth sale of your multi-family property.Read more
A couple weeks ago, a few of us attended a live auction on a six family apartment building in Dorchester. The property was initially listed on the MLS as an auction, but was ultimately removed, due to what we assumed was demand in registering for the event. A few days before the auction, those of us who were attending, got together to talk about the property and analyze some of the numbers including after repair value, rehab budget, etc. We ultimately decided on an ARV of 1.4 million (this number will come back later) as we started looking ahead to the auction date.
On the day of the auction, during the drive over, we tried to get a feel for how many people might show up to the event. Thinking negatively, I assumed maybe a dozen or so people would show up to compete for the property. We arrived pretty early and therefore, were one of the first people there. As time went on, however, people started arriving, flooding the street with cars and people standing around waiting for the start time. By the time 11:00 rolled around, the time the auction was suppose to start, nearly 50 people had registered as bidders! I think at that point we were more just looking to have a good time and see what the property ultimately sold for.
Funny enough, once the auction started, we were actually the first bid to come in at 600,000, which was the opening bid. Our chances lasted about all of a minute. Within that time the bid had increased to well over 800,000, which priced us out of our max allowable offer. As the price continued to climb, we couldn’t help but chuckle and not understand what was happening since we believed the property to only make sense at a certain value. After about 15 minutes of back and forth bidding between two people, the property finally sold for 1.4 million. Yes, the amount that we determined the property was worth BEFORE the $500,000 in repairs we estimated the property needed!
At the end of the day, we definitely enjoyed the experience and chalked it up to a good learning experience. There will always be more deals to be had, you just have to keep looking for them. Since then, we have made a commitment to attending more auctions to get a sense of whether it is a worthwhile pursuit for deals or not.
Below is a short video of a portion of the bidding process. If you can tell, we were having some fun at this point in the background.