The Ultimate Guide To Selling A Triplex In Arizona In 2022
Selling a triplex in Arizona requires a certain level of skill, transparency, and perhaps, a great Arizona real estate agent. Though there are enormous positives to owning a triplex, selling a triplex is a process that requires attention to detail, practical communication skills, and a level of organization. A triplex is a structure that houses three different suites, all under one roof. Selling a triplex takes a certain amount of work and effort, but don't worry; we're sharing all the details you require to make it happen in the Ultimate Guide to Selling a Triplex in Arizona in 2022. We will touch on important details, things that are often overlooked, and much more. By the end, you'll have everything you need to start your journey selling a triplex in Arizona.
What is a Triplex?
Selling a triplex involves understanding what a triplex even is. A triplex is one building with three separate suites inside. The multifamily property shares a few walls between each suite but offers more privacy than living in an apartment. Each unit in the triplex has its own living room, kitchen, bathroom(s), private door to the exterior, and its own address and mailbox.
Benefits of Living in a Triplex
There are many benefits of living in a triplex. These would be helpful to understand when you're beginning the journey of selling a triplex in Arizona. First, create a list of the great components of living in a triplex to be able to share easily with prospective buyers. Below you'll find a few examples.
- Triplexes are typically quite spacious with clever storage solutions.
- Fewer neighbors than if you're renting in an apartment building.
- Skip the trek up an endless number of stairs. Triplex has a limited number of floors, making hauling those groceries slightly easier.
How to Start Selling a Triplex
If you are considering selling your triplex, you may be probably wondering where to begin. How do you make a triplex inviting, welcoming, and should you make any repairs beforehand? When selling a triplex, there are several factors to consider and pay attention to. Lucky for you, this ultimate guide will take you through the process of selling a triplex in Arizona.
Tenant and Landlord Rights and Responsibilities
Before we dive deep into selling a triplex, it's important to note that if tenants live in the property specific rules must be followed. This concerns providing notice about showings, possession dates, how clean the property should be kept during this time, and more. It is imperative that you familiarize yourself with your responsibilities as the landlord and the rights of the tenants in the triplex.
Identify your Target Audience
One of the most essential steps to selling a triplex in Arizona is identifying your target audience and appealing to them. Your target audience refers to the demographic and people that would be most interested in what you're selling. For example - if you're selling a chic condo with one bedroom, then your target audience wouldn't include families. Once you figure out who exactly you're trying to sell to, you can then implement a meaningful and impactful marketing strategy to connect with them.
Narrowing down your target audience, developing a strong marketing campaign, and focusing on buyers who would be interested in the property rather than focusing on all prospective buyers can significantly increase sales. You must zone in on your target audience before you start selling a triplex. Moreover, knowing your target audience means that you're talking to one group of people rather than talking to everyone. Your target audience is likelier to listen, hear and respond rather than talking to everyone.
Building a meaningful marketing campaign touches on emotions, personal connection, and being a real estate agent that your clients can count on. Invoke an emotional message that speaks to your target audience and allows them to imagine what life would be like on your property.
How to find your target audience
To find your target audience ask yourself a few questions:
- Who are you looking for?
- Where are they?
- What do they do in their free time?
Get a Pre-Sale Home Inspection
At the beginning stages of selling your triplex, ensure you secure a pre-sale home inspection by a qualified licensed inspector. There are various benefits to making this one of your first steps. For example, a home inspection will tell you the exact condition of the property and therefore make it easier to price accurately. The report from the home inspection will give you insight into necessary repairs and let you decide whether or not you're going to complete them. Furthermore, a pre-sale home inspection increases the potential buyers' trust and reduces the need for intense negotiations. A home inspection uncovers it all and puts it on display. It makes the seller seem more honest and trustworthy to buyers.
Decide on an Accurate Price
When you're deciding on a price point for your triplex, there are a few factors to consider. For example, you'll want to know what other properties have sold for in the community. A few other vital factors are the property's condition, location, and proximity to excellent schools. A qualified real estate agent would be able to assist with setting a fair and competitive price.
Create an Epic Marketing Strategy
Once you have honed in on your target audience, you can implement a terrific marketing strategy. Begin with a deep market analysis of price points when selling a triplex in Arizona. First, examine the value of the properties in the nearby region and their asking and selling prices. Next, consider the sellable features of the property and out them the highlight in your marketing strategy.
Factors to consider when pricing your property:
- The quality of the building construction.
- The neighborhood.
- Proximity to amenities.
When selling a triplex, it's essential to consider the factors to convey the property's full value. It helps to lay it all out and have it clear so prospective buyers can clearly identify what makes the property a worthwhile investment. Once you've identified the correct price point, reach out to broker partners to help market and generate interest.
A broker partner can be helpful in spreading awareness that a local real estate agent is selling a triplex. Furthermore, they might be able to put the property in their newsletter, offer ad space on their website or reach out to clients that they know of whom might be interested.
Afterward, create a simple and effective referral plan with a clear incentive. This is beneficial in spreading the word that you're selling a triplex. What is going to sell it is that it's a terrific property priced competitively with plenty to offer. The better priced the property is, the more interest you'll generate, leading to a more competitive sale.
Next, it's time to develop the listing. The listing is the gold that will attract your target audience. It's a great way to highlight all the sellable features of the property and describe how great of an investment it is.
The makings of a terrific listing:
- Highlight unique, memorable, and personal features about the property.
- Invest in a real estate photographer to capture the beauty of the property.
- Avoid using red flag words in the description. (For example, cozy, fixer-upper, needs TLC, up-and-coming neighborhood, etc.)
When you're selling a triplex, you must be organized and on the ball. Keep a clean calendar and be careful not to overbook showings. Furthermore, know the rights and responsibilities of the real estate agent, the tenant, and the prospective buyers. This can help to avoid any hold-ups later on in the process. Make sure you have all the necessary documents ready and available for prospective buyers.
Consider the Benefits of Renovating
Before you open the door to selling a triplex in Arizona, you must first consider whether or not the property would benefit from being renovated before listing. Renovations are a terrific way to increase comfort, maximize space and beautify the property. However, if the renovations are too personal or unique, they run the risk of decreasing the property value. Consult with your real estate agent regarding whether or not your property requires some sprucing up. A few simple renovations you might consider are applying a fresh coat of paint, installing upgraded smart plugs, installing modern light fixtures, or redoing window treatments.
Upgrade the Appliances
Upgrading the appliances in the property will make selling a triplex a bit easier. There are several benefits connected to upgrading the appliances in the property. Not only can it improve the tenants' kitchen experience, but it can also speed up cooking and give the chef more control over every part of the process. With new appliances offering features like temperature controls, Bluetooth capability, and other energy-efficient tools, it's easy to understand how upgrading the appliances will increase the property value and contribute to the overall satisfaction of the chef. Consider upgrading the refrigerator, stovetop, dishwasher, washer, dryer, etc.
Stage the Property
If you're selling a triplex in Arizona, one useful tool is to stage the property. Using the right furniture can make the home appear more spacious and welcoming. Staging the property increases the aesthetics and can lead to a faster sale. In addition, it paints a final picture of what life in that property might look like for a prospective buyer. Rather than looking at an empty house and a potential buyer has to try to imagine what life would look like, staging the triplex invites the buyer to dream. Imagine what their life looks like on that property.
Don't Skimp on Photos
When putting together the real estate listing, hire a professional photographer to capture all the best parts. The photos of the property are how the prospective buyer will first be drawn in. They act as an entryway and invite the buyer to visit, call, and find additional information surrounding the property.
Hire a Real Estate Agent with Exceptional Experience in Selling Multifamily Homes
When you're ready to start selling a triplex, consider listing with an experienced real estate agent. A real estate agent brings a certain level of expertise and experience to the process. It widens the pool of prospective buyers and takes the marketing strategy off of your shoulders. A great real estate agent will advise the seller on whether or not renovations would be beneficial, provide a competitive listing price, organize open houses, send out flyers, and more. Working through selling a triplex with a qualified and experienced real estate agent can make a difference in how long the property stays on the market.
Highlight the Benefits of Owning a Triplex
Be prepared to share the benefits of living in a triplex with potential buyers. Then, when you hear potential cons, you can counteract them immediately because there are numerous impactful benefits to living in a triplex.
- Shared outdoor maintenance duties. (Grass cutting, gardening, etc.)
- Smaller mortgage. (Typically, the asking price for selling a triplex is lower than a house of comparable size in the same neighborhood.)
- Increased privacy.
Don’t Forget Curb appeal
When you're selling a triplex in Arizona, stepping up the curb appeal can go a long way. Prospective buyers will be more inclined to purchase a house that looks nice rather than one that doesn't. Stepping up the landscaping, applying a fresh coat of stain to the fence, or planting a few beautiful flowers can go a long way in the overall first impression of the house.
Simple ways to step up the curb appeal:
- Swap out old hardware for new matching. (Ex. house numbers, door handle, lock, mailbox, etc.)
- Paint the front door.
- Clean gutters and downspouts.
Host an Open House
An open house is a terrific marketing tool. It allows many prospective buyers to experience the house and imagine what their life would look like in it. Furthermore, buyers tend to feel less pressure when they're not the only ones touring the property. It's common that hosting open house results in a faster sale.
Review the Offers
If all goes well (fingers crossed), the offers will start rolling in after your open house. You might even get multiple offers depending on how competitively the property is priced. For each offer, the seller can either accept it, reject it, or counter offer, which is a negotiation of price and/or terms. Review the offers and notice things like earnest money (the amount being offered as a security deposit until the funding goes through), contingencies, financial history, whether or not the buyer is preapproved, and more. Don't just assume to accept the highest offer. Always make sure to read them carefully and consult with your real estate agent or lawyer.
Anticipate Closing Costs
Closing costs aren't just for the buyer. The person selling a triplex will also need to account for closing costs. Closing costs can be various land transfer taxes, outstanding liens, attorney fees, and more. Most times the buyer covers most of the closing costs but you should anticipate at least a small fee.
Now you're finally ready to sell your triplex. A few important things to keep are the forefront of your mind are to accurately price the property, consult with a real estate professional, consider certain renovations that might increase the property value, and amp up the curb appeal. There are plenty of other great tips to follow, but the general idea is to clean the property up and list it well. Ensure that the listing is well-written, mistake-free, and uses accurate language to describe the triplex. Once the property is listed, host an open house and get ready to start opening offers. Before you know it, you'll be on your way to selling a triplex in Arizona in no time!