Why Waiting Until Spring To Sell Your Minneapolis Duplex May Be A Bad Idea

Over the last few months, I’ve received countless calls from would-be duplex, triplex, and fourplex sellers in Minneapolis and St Paul.

The callers always say the same thing. They’re tired of being a landlord. They really want to sell. And they want to wait until spring.

That’s because they mistakenly believe small multifamily properties sell for more money when the grass when the snow thaws.

When we look at the facts, however, they tell a different story.

The chart on the right consists of data for the last three years. The blue line represents the number of actively listed duplexes, triplexes, and fourplexes for sale in the seven-county metro area during a given month. The red line represents the number of sales that closed during the same month.

It’s important to note that due to the length of time it takes to get financing in place, the closings most likely represent properties that received offers 45 to 60 days earlier. For example, the February closings are the result of December listings, and so forth.

If you look, you’ll see the number of new listings greatly outpaces any increase in sales activity. In fact, for the most part, the number of sales remains relatively constant year-round.

However, the competition — the number of properties Minneapolis or St Paul duplex buyers will have to choose from actually grows exponentially!

When buyers have more choices, they may have less of a sense of urgency and perhaps even believe they have more negotiating power. After all, if this duplex doesn’t work out, there are three more on the market to choose from.

If you’re considering selling your investment property, it’s important to examine the facts.  The data says there are duplex buyers year-round, not just when there are robins in the yard.