Why Selling a Multifamily Property Requires a Different Playbook

Many owners have bought or sold a single-family residence, but selling an apartment building is an entirely different process. It is often one of the largest financial decisions an owner makes, and the outcome depends heavily on preparation, strategy, and who represents you. The Kenny Stevens Team created this Los Angeles multifamily selling guide to help owners navigate the process with clarity and confidence.

1. Prep Your Paperwork Early

Buyers will expect complete and accurate financial documentation. Before you list, assemble:

• A current rent roll
• Trailing 12-month income and expense statements
• Notes on deferred maintenance
• A list of capital improvements (roof age, repipe, electrical upgrades, appliance packages, paint, remodels, etc.)

Strong documentation builds credibility and reduces renegotiation risk later.

2. Align All Decision Makers

If you have multiple partners, siblings, beneficiaries, or LLC members, ensure that everyone agrees on:

• Whether the property will be sold
• Pricing expectations
• How proceeds will be distributed

Disagreements among owners are a top reason escrows fall apart.

3. Work With an Expert to Determine Value

Unlike single-family comps, apartment building sales are not easily searchable. An agent who specializes in your submarket can show:

• Recent closed sales
• Off-market trades
• Active listings and pendings
• Buyer demand in your ZIP code

Understanding where your building fits in the current Los Angeles multifamily selling guide framework is essential before going to market.

4. Know That Valuation Is Both Art and Science

Multifamily valuation is driven by four primary metrics:

• Gross Rent Multiplier (GRM)
• Capitalization Rate (CAP %)
• Price Per Square Foot (PPF)
• Price Per Unit (PPU)

True value is a blend of these indicators. Rent levels, unit mix, condition, ADU potential, and rental upside all impact pricing. Work with a broker who can walk you through their underwriting and comp set in detail.

5. Understand Who You Are Dealing With

If you sell directly to an investor, you are almost always accepting a significant discount. Investors are looking for the best deal possible, and without multiple buyers competing, they will control the negotiation.

Selling without representation exposes you to:

• Lower pricing
• Higher retrade risk
• Weaker terms
• Longer closing timelines

A strong broker forces buyers to compete, raising both price and certainty.

6. Maximize Your Value With Strategic Marketing

The highest price comes when your property is marketed professionally and broadly. Choose an agent who:

• Specializes in your submarket
• Has a strong historical presence in your ZIP code
• Uses premium photography and marketing materials
• Syndicates the listing across every major platform
• Has an active database of local and regional buyers

Your building deserves more than an off-market email blast. Presentation matters.

7. Choose an Agent You Actually Want to Work With

Selling a multifamily property is a relationship that lasts months, sometimes longer. You will be communicating with your broker and their team constantly. Choose someone who:

• Understands your goals
• Communicates clearly
• Offers strategic advice
• Makes you feel confident throughout the process

The best results come from agents who pair expertise with consistent execution.

8. Ask the Right Questions Before Hiring an Agent

Use this list to evaluate any broker you are considering:

• How many properties have you sold in the past 12 months?
• How many of those were in my neighborhood?
• What is your full marketing plan for my property?
• How do you differentiate yourself from other agents?
• Why should I work with you?
• What can I expect from you and your team throughout the process?

Clear answers reflect a broker who has done the work and knows the market.

9. Plan Your Next Steps Before You List

Think ahead. How will you use the proceeds?

• A 1031 Exchange into a larger property
• Diversifying into multiple assets
• Reducing estate exposure
• Creating a Charitable Remainder Trust
• Paying down debt

Your exit and reinvestment plan should be defined before the first offer arrives.

10. Protect Yourself During Escrow

Most investors will attempt to retrade once they get into escrow. Protect yourself by:

• Securing multiple offers
• Keeping competitive pressure alive
• Choosing buyers with strong track records
• Staying firm on price when documentation is organized upfront

When buyers know the listing is competitive, retrades become far less likely.

Conclusion

Selling an apartment building requires preparation, strategy, and the right team. This Los Angeles multifamily selling guide is designed to help owners approach the process with confidence and clarity. With strong documentation, expert representation, and a structured plan for the next phase, you can maximize value and reduce risk throughout the sale.

If you are considering selling in 2025 or want a customized valuation of your property, the Kenny Stevens Team is here to help you evaluate your options and choose the best path forward.