8 Underestimated Factors for Sales of a Multi-Family Home

The following eight factors illustrate why careful preparation and professional brokerage can make a decisive difference when selling Real Estate.

1. Development Potential and Rental Income Potential

A property’s current condition does not necessarily reflect its economic potential. Can a building be expanded or have additional stories added? Is it possible to build a replacement structure with a higher floor area ratio? Are there structural reserves, or do easements, protective regulations, or other requirements restrict its use?

Questions like these can significantly affect a property’s value. Anyone who is unaware of the property’s development potential risks a buyer recognizing added value in precisely that aspect—value that the seller himself has not factored into the price.

For rental properties, similar principles apply to rental income potential. Key factors in this assessment include existing lease agreements, investments made, and the legal options for future rent adjustments. Only by considering these factors can a realistic picture of the property’s income potential—and thus its value—be determined.

2. Emotional Factors, Especially in the Case of Inheritance

Real estate is often linked to memories, family history, and personal attachment. This emotional connection can make it difficult to maintain the necessary objectivity during the sales process.

This is particularly evident in cases of inheritance. Opinions on what should happen to the property can vary widely. Some heirs prefer a quick sale, while others would like to keep the property or expect a significantly higher selling price.

A transparent appraisal and a jointly agreed-upon sales strategy help separate personal interests from economic realities. Especially in the case of communities of heirs, impartial guidance can not only improve the outcome but also reduce conflicts among the owners.

3. A Realistic Assessment of the Selling Price

Setting the selling price too low amounts to giving away assets. However, setting the price too high can be just as problematic. If a property remains on the market for a long time and the price has to be reduced several times later on, this can trigger mistrust among potential buyers.

Online reviews and listed comparable properties provide an initial guide, but they are no substitute for a thorough assessment. Asking prices show what sellers are asking for, but not necessarily what buyers actually pay.

For income-generating and development properties, in addition to location and condition, factors such as income, investment needs, construction potential, and demand from various buyer groups are particularly relevant. Therefore, what matters is not only the property’s calculated value, but also which buyer is willing to pay the highest price for its specific characteristics.

4. The Right Marketing Approach

Not every property should be handled the same way through brokerage. For a single-family home, a broad listing with a clear asking price may be appropriate. For multi-family homes, development lots, or exclusive properties, however, a structured bidding process can yield better results.

Whether or not to publish a price is also part of the sales strategy. Depending on the property, a clear asking price can provide guidance, while brokerage without specifying a price can offer more flexibility.

Next, a decision must be made as to whether the process will be conducted in a single stage or in two stages. In a two-stage process, indicative offers are first solicited, and selected prospective buyers are then invited to a second round. This allows for a better comparison of the purchase price, financing security, and other terms.

The right marketing strategy ensures that the right buyers are reached while simultaneously fostering the most intense competition possible.

5. Legal Pitfalls

Legal issues are often not discovered until a buyer begins a detailed Due Diligence review. At that point, they can delay the sales process or negatively impact the price.

Easements, preliminary registrations, and annotations in the land register may restrict potential uses or require further clarification. Equally important is the building code compliance status: Do the existing plans match the actual condition of the property? Have any renovations, additions, or changes in use been approved? Are there any pending proceedings or conditions?

For rental properties, additional factors to consider include lease agreements, addenda, rent adjustments, utility bills, and potential disputes with tenants.

The sooner such issues are identified and resolved, the lower the risk that a buyer will later demand price reductions, guarantees, or additional conditions.

6. Real Estate Gains Tax

A good selling price does not automatically mean a correspondingly high net proceeds. Property gains tax plays an important role, and its regulations vary by canton.

Factors relevant to the calculation include, among others, the original purchase price, the length of ownership, value-enhancing investments, and other deductible costs. However, especially in the case of older properties or inheritances, documentation of past investments is often missing.

If the potential tax burden isn’t considered until after price negotiations, the surprise can be significant. That’s why you should estimate, even before Sales, what net proceeds will actually remain after taxes and other costs.

7. Missing Documents

Once a serious buyer has been found, all necessary documents should be available in full. If land registry extracts, construction plans, permits, lease agreements, or proof of renovations are missing, the sales process can quickly come to a standstill.

A clear record of past investments is particularly important. When were the roof, heating system, windows, or plumbing replaced? Which units were renovated? Which improvements helped maintain or increase the property’s value?

If such information is missing, buyers tend to be more cautious in their calculations and often factor in uncertainties by using higher investment assumptions or a lower purchase price. At the same time, missing documentation can also be disadvantageous when calculating property gains tax.

Comprehensive documentation therefore builds trust and supports both pricing and an efficient sales process.

8. Purchase Agreement and Contract Negotiations

Reaching an agreement on the purchase price does not mean the sales process is complete. The purchase agreement addresses numerous points that can have significant financial implications.

These include, among other things, payment terms, existing leases, known defects, warranties, representations, and the allocation of costs.

That is why one should not base a decision solely on the purchase price. A higher offer may be less attractive if it comes with numerous conditions, extensive warranties, or uncertain financing.

The key terms of the contract should, if possible, be clarified before making a definitive commitment to a buyer. Anyone who waits until after that to negotiate key points weakens their own position.

Good preparation pays off

A successful real estate sale begins long before the actual brokerage phase. You must identify the property’s potential in terms of building regulations and market value, realistically assess the selling price, and choose the right sales strategy. At the same time, legal and tax issues must be clarified, and all documentation must be fully prepared.

Addressing these issues early on creates transparency, reduces risks, and improves the conditions for successful Sales. Professional guidance, therefore, involves much more than just listings and showings: it ensures that potential is identified, risks are addressed in a timely manner, and the entire process is structured to achieve the best and most secure possible Sales outcome.

Do you have questions about Sales for your apartment building?

I’d be happy to advise you on your sales strategy.

Email to Martin Brüngger

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