Sell Your 2-4 Unit Property for More: Why Having a Vacant Unit Matters

The real estate market is constantly evolving, and the demand for multi-unit properties continues to grow. When it comes to selling a 2–4-unit property, one strategy that can significantly increase your chances of success is ensuring there is at least one vacant unit. House Hacking has become increasingly popular, and there is a huge buyer pool searching for properties that allow them to live alongside tenants who can help cover their mortgage and additional costs. In this blog post, we will explore the reasons why having a vacant unit is a crucial factor when selling a 2–4-unit property, particularly when trying to get the high-end prices in your market.

Attracting Owner-Occupant Buyers:

The primary advantage of selling a 2–4-unit property with a vacant unit is that it attracts owner-occupant buyers. These buyers consider the property as both an investment and a place to live, intending to occupy one of the units themselves. This dual purpose – living and investing – means that these buyers often have different motivations and decision-making criteria compared to pure investors.

Access to Low Down Payment Loans:

Owner-occupant buyers have access to a variety of low down payment loan programs, such as VA (Veterans Affairs) and FHA (Federal Housing Administration) loans, among others. These loans allow eligible buyers to purchase a property with a minimal down payment, usually between 3.5% to 5%. By having a vacant unit, you increase the likelihood of attracting owner-occupant buyers who can take advantage of these loan programs, which in turn increases the pool of potential buyers for your property.

Higher Sales Prices:

Owner-occupant buyers tend to pay more for multi-unit properties than pure investors. This is because they don’t solely evaluate a property based on its investment potential or ROI (Return on Investment). Instead, they consider factors such as the neighborhood, schools, and amenities, which can lead to higher offers. Additionally, owner-occupant buyers often view the rental income from the other units as a way to supplement their living expenses, rather than adhering to the stringent investment criteria investors typically follow.

Easier to Show:

Showing properties with tenants can be difficult, and not having flexible access slows down the sales process and may frustrate prospective buyers. Having at least one unit vacant allows for easy showings, even if buyers must reschedule to see occupied units. Being able to visit the property to see at least one unit and common areas typically can drum up enough interest to start receiving offers contingent on viewing the rest of the property.

Selling a 2–4-unit property with a vacant unit offers a range of advantages that can ultimately lead to a more successful and lucrative sale. By opening it up to owner occupant buyers, you’re opening your property up to a larger buyer pool that will pay more due to their access to low down payment loans and their decision-making criteria. If you want the highest market price possible, this is the way to go!