Selling a duplex, triplex or fourplex can take time – and many buyers and sellers aren’t aware of exactly how long. Here’s what you need to know about the buyer’s and seller’s timeline for a multifamily properties in Santa Clara County.
How Long Does it Take to Sell a Duplex, Triplex or Fourplex in Santa Clara County?
In the vast majority of cases, it takes four to six weeks to sell a property – but that’s after you’ve accepted an offer and the transaction is set in motion. The amount of time your duplex, triplex or fourplex spends on the real estate market waiting for a buyer is another story.
What Affects the Length of Time it Takes to Find a Buyer?
Investment properties are different from single-family homes. First, there are fewer investors than there are people who want to purchase a home to live in themselves. Second, investment properties are often in higher price brackets than single-family homes are; that cuts out a segment of the market, as well.
One of the single-biggest factors in how long it takes to find a buyer is its price. When you price your duplex, triplex or fourplex properly from the beginning, you’ll find a buyer faster than you would if you priced it too high. That’s because savvy investors will recognize a good deal when they see it – and they’ll want to secure the deal before another investor gets to your property first.
The Timeline After You Accept an Offer
After the offer is accepted on your duplex, triplex or fourplex, things start falling into place. Naturally, cash makes the whole process faster – but if you’re like most sellers, your buyer is using financing to purchase the property. Here’s what happens and how long it takes:
- You execute the contract and confirm the closing date (1 day)
- The agent opens the escrow account (2 to 3 days)
- Buyer completes inspections and you complete repair requests (1 to 2 weeks)
- Mortgage application underwriting (10 to 30 days)
- Appraisal (1 to 2 weeks)
- Buyer gets homeowners’ insurance and title insurance (1 day)
- Loan approval comes in (1 day)
- Buyer does the final walk-through (1 day)
- Closing day (1 day)
The longest part of the process typically involves the mortgage application underwriting process. When lenders are busy – or when buyers need to provide additional documentation and fail to do so in a timely manner – that can stretch over a span of a few additional weeks.
Most Common Delays in the Sale of a Duplex, Triplex or Fourplex
Some of the most common issues that can delay closing on your duplex, triplex or fourplex include:
- Financing issues, such as a change in the buyer’s credit score
- A low appraisal, which can happen when the lender’s appraisal does not believe your property is worth what you’re asking for it
- Title problems, such as unresolved liens or judgments against the property
- Slow repairs, such as when something goes wrong with a contractor and it takes longer than expected to complete repair requests
- An unsatisfactory walkthrough, such as when the buyer isn’t happy with the condition of the duplex, triplex or fourplex for some reason
A qualified agent with years of experience in the real estate market can help streamline the process and keep things moving. When you’re ready to learn more, connect with me today. I’m happy to help!