Bargain Sales: A Good Deal for Sellers, Buyers, and Residents
Ready to get out of the real estate business, but want to ensure that your long-term residents won’t be displaced by a new owner? Looking for the best way to maximize your return on investment while leaving a legacy from your years of ownership?
Getting top price for your property is likely a priority when you are selling. And for owners of multifamily buildings that offer affordable rents, nonprofit buyers may be able to offer the best total package: a larger financial return to the seller’s bottom line and a stable home for residents.
This brief provides an overview and hypothetical examples that illustrate how a bargain sale to a nonprofit buyer can make the total value to the seller higher while the price to the buyer is lower. This pays off in the long-term for building residents, who will face less pressure from rent increases.