MLS for Selling Smaller (6 to 24 unit) Apartment Buildings?

Question

Curious what the community thinks of the usefulness of the MLS for selling smaller (6 to 24 unit) apartment buildings.

What do you see as the pros/cons of the two approaches? What about flat fee MLS listings? Which do you see more beneficial to netting the best price for an owner after commissions? If you were an owner, how would you want your building marketed?

I have my own feelings, but interested in hearing other's thoughts.

Curious what the community thinks of the usefulness of the MLS for selling smaller (6 to 24 unit) apartment buildings.

What do you see as the pros/cons of the two approaches? What about flat fee MLS listings? Which do you see more beneficial to netting the best price for an owner after commissions? If you were an owner, how would you want your building marketed?

I have my own feelings, but interested in hearing other's thoughts.

Jordan G. · Answer

@Brian Ploszay pretty much sums up my thoughts exactly. I previously worked suburban multifamily in Chicago, mostly 7 to 24 units with the occasional five/six-flat mixed in. Very successful, non-MLS team that I worked with. I got out of the biz a little over a year ago, but have been considering re-entering the biz and am debating different business plans. The brokerage space is just so crowded... IMO, you really need at least 1k  properties / 700+ owners in your database, and that's just to start. Focusing on 10+ unit properties really starts to limit inventory and all the investment sales guys are tripping over each other going after the same owners. Focusing on 5 to 10 units increases inventory but now you are competing with every single soccer mom weekend warrior type realtor that "sells everything" (homes, condos, multifamily, mixed use) and is telling the owner the property is worth 20% more than reality... Maybe I should just stick to my stress-free underwriting job where I'm working less, less stressed, and making more, but I really miss being in the field kicking bricks on the hunt.

Brian Ploszay · Answer

I am in Chicago.  The bulk of multi-family buildings in our market are not sold on the MLS.   The majority of buyers of the larger buildings don't regularly look on the MLS.  Astute multi-family brokers keep a very well researched database of buyers.  They contact them directly.

I also find that many of the MLS listed apartment buildings are.... over priced.

I would recommend listing a six unit on the MLS.  It works for sure.  Cash deals are the best.  Mortgage contingent deals are troublesome if they are newbies.