Tips on selling Brooklyn Duplex

[Brandon Stanley]

Hello!

I am new to the BP community and real estate investing, so forgive me if some of these questions are quite basic or obvious. 

A family member and I recently inherited a duplex from 1899 in Brooklyn, NY. We are interested in selling the property and splitting the proceeds. The property is currently rented far below market value and in need of updating. We are not interested in doing the renovations ourselves and prefer to sell the property as is. At the very least, I think it needs two new kitchens and two new bathrooms. 

We would like some advice on how best to sell this home. Should the current tenants vacate the home prior to selling? Both tenants have been there for many years.

Should I work with a local realtor or am I better off marketing the home through a different platform? Does anybody have any Brooklyn based realtors they recommend?

Should I inform the tenants that the house will be sold in the near future? I am concerned that they may stop paying rent if they know they may have to move.

Should I ask the tenants if they know someone who is interested in purchasing the home? I don’t think either tenant are in a position to purchase the home.

Thanks in advance for your advice!

[Jason Lee]

Selling a property with tenants is much more difficult than selling a vacant one, and selling one that has tenants paying well below market rate is even harder. I would try to sell it vacant. You might want to speak to the tenants if you haven't already to take their temperature on what you're planning. If they're the kinds of tenants that will stop paying rent then they will also make it very difficult for you to sell. By law you must give them written notice you're terminating the lease at least 90 days prior to the end of the lease (if there is one), or 90 days notice if it's month to month. If they become difficult then you should consult a landlord/tenant attorney sooner and maybe get them to send the notice to terminate.

The tenants will not be able to buy the property (at market rate) and they probably won't know anyone that will. Most properties do not sell by word of mouth, they sell be being put on the MLS and marketed to the widest pool of potential buyers. Find a realtor that can show a successful history of sales representing the seller (you should be able to verify it yourself online). If the house needs work then a top selling agent can help you make minor improvements and/or stage the property (at minimal to no out of pocket cost) to get the highest sales price possible. You don't have to renovate the kitchens and baths but there are things you can do cosmetically to force appreciation.