Enter your email address for weekly access to top multifamily blogs!

SageWater Insights

Innovations From the Leaders In Pipe Replacement

Selling a Multifamily Asset? Don’t Let Leaking Pipes Sink Your Deal

Selling a Multifamily Asset?  Don’t Let Leaking Pipes Sink Your Deal

There is no doubt, leaking pipes at your apartment complex are a nuisance.  From residents to property managers to maintenance supervisors to owners, everyone is impacted when a property is leaking.  Oftentimes, the thought of selling the property to get rid of the headache seems appealing.  However, leaking plumbing is hard to hide, and chances are you will not be able to pass off the property without taking a valuation hit unless you get the pipes fixed.

If you are thinking of selling your property and are in need of a repipe, it is in your best financial interest to get your piping systems fixed before you list. With turnkey contractors who are able to quickly and cost effectively complete a repipe without moving out residents, selling a hassle free building will most assuredly increase the value of your property, which will typically offset the cost of the repipe.

Because new pipes (installed behind patched walls) have no curb appeal and an ambiguous correlation to increased rents, many property owners are hesitant to make this upfront investment before listing their property.  However, inspectors, insurance agents, appraisers and potential buyers are sure to uncover the evidence if your property is leaking, and will either lose interest or submit a low-ball offer knowing the property has issues. By being upfront about the investments you have made (just like you would promote a new roof or renovated kitchens), promoting a recent repipe indicates to buyers that the property is well maintained and worth their investment.

Rate this blog entry:
0
 

Leave your comments

Your building is leaking.  Your pipes are failing.  Your insurance company might even be calling.  You need a repipe.  The problem is that it’s going to cost millions of dollars, and your board doesn’t have it in your reserves.  Do you take out a loan, issue a special assessment, or both to cover the costs?  Or do you wait, hoping you can raise the funds over the next several years, and try to buy more time? Unfortunately, for boards facing the prospect of a repipe...
It appears as though allegedly defective plumbing products have hit the market again. On October 26th, 2018, the NIBCO PEX Settlement Administrator and Plaintiffs’ law firms announced a class action settlement involving allegedly defective PEX tubing, fittings, and clamps. Per the settlement website: “You may be entitled to benefits from a class action settlement if: (a) you have owned or occupied at any time since January 1, 2005, a residential or commercial structure in the United States that ...
Great news for multifamily developers: That statute of limitations for fair housing issues relating to construction and development are now limited to 2 years following a project's completion. http://www.multihousingnews.com/multihousing/content_display/industry-news/e3i7b7c9db010011facebb7686524233c21