BiggerPockets

I work in commercial construction and typically an owner will request an owners manual with a list of product installations and their associated warranties.

I think it would be a great marketing strategy for rehabbers to create an owners manual that gives product descriptions of every new and updated items/equipment in the home with their warranties.

I think some homebuyers are wary about buying a rehabbed home, simply because they do not know if the project was done right. The manual could have a copy of the building permits pulled, photos of construction in progress and cut sheets of construction assemblies/standards used during the project.

For example, if a bathroom was remodeled, take pictures of the waterproofing membrane, provide product specifications, maybe even provide a mockup for the homeowner, so they know that everything was done right and by the book.

This will reassure a homeowner that you didn't just slap some lipstick on a pig to sell it to the first sucker.

I think this is a good business practice for any rehabber/remodeler who is remodeling per code and using best construction practices.

If you are doing things right show it off!

Let me know your thoughts.

Thanks.

We try to give them as much information as we can, such as all warranty information and manuals, contact information for key subs who provide labor warranties (i.e. roofers), pest control/termite bond info, etc. We also make sure to leave touch-up paint with the colors labeled. I also try to leave some small samples tile and wood flooring, with the brand written on the back, so they can take them to match paint, furniture, etc.

We also like to walk-thru our rehabs with the buyers after doing inspection repairs and explain various features, much like the new homebuilders do. It is comforting, especially to anxious first-time buyers, to meet us and see that we are professional and thorough, and not just the stereotypical greedy investors.

We try to give them as much information as we can, such as all warranty information and manuals, contact information for key subs who provide labor warranties (i.e. roofers), pest control/termite bond info, etc. We also make sure to leave touch-up paint with the colors labeled. I also try to leave some small samples tile and wood flooring, with the brand written on the back, so they can take them to match paint, furniture, etc.

Chris,

That's a great idea to leave attic stock for materials used on the project, such as carpets, floor tiling and paint in case they need it.

We also like to walk-thru our rehabs with the buyers after doing inspection repairs and explain various features, much like the new homebuilders do.

Do you host an open house and walk-through the property with them?

I also think this is overkill and do not do it. I also agree that you open yourself up to providing the other party ammo to sue you if anything goes wrong. This is what all the disclosure forms are for.

I do provide the buyer with any kitchen appliance manuals and warranties, as I always put new in, but that is about it. I also provide the brand and clor code for all paints used (plus some touch up will be left in garage for them) and also (when i have them) leave some tile, stone, carpet overs for samples and minor repairs.

While I have confidence in my crew's ability to perform quality work and quality materials, one must realize that with government intervention, it makes our jobs difficult at best. One may consider that code in an area may require a permit for something as simple as changing out a toilet, yet a rehabber can't possibly turn a profit if they pulled a permit for every single little item needed.
With regard to adding square footage, changing configurations, etc, I would always recommend it be done with full permits, but on other items, I would not make the same recommendation even though it may be code.

Good input, I'm not sure if I understand the ammo to sue comments if you disclose too much...You only provide the homeowner ammo if things were not properly installed or not per code in the first place...

If anything if you show proof that you pulled permits for reasonable items and show evidence that you remodeled to current building standards and practices, that should be enough to limit your legal liability. Honestly, the best way to limit your legal liability is to do everything correctly and show a good faith effort that you did everything per code.

Building permits don't kill deals, and if you included the costs in your remodeling budget, it's just another cost of work item.

Personally, if I walked through a flipped house and knew that permits weren't pulled, and had no proof that everything was installed per code, I wouldn't buy it...

Jscott, I think that is a good idea to leave a business card. It's a good way to show the homeowner that you care and will be accountable for any reasonable issues that arise. If there ever are any issues, correcting them could be costly upfront, but not correcting them could cost you your reputation.

David, I think this is a good idea as I have seen many would-be buyers hesitant to buy a home that was once a foreclosure and has been rehabbed. There is always the stigma that the investor is "trying to cover up something".

However I do share others hesitation that it could also be used against you.

Not true. Basically if the homeowner is a jerk or an idiot or both and gets it in his head that when something goes wrong with the house it is somehow your fault. On the other hand you can control this with being selective about what you put in the book. I am not sure if pictures of the before and during might be appropriate but warranties and contacts for contractors might be. Paint and carpet color codes, floor types, tile origin etc. might all be a good idea.

That is coming from an investor's point of view, remember, it is retail buyers who we sell to, not investors and they usually do not have that perspective.
My point was that there are many items that all rehabbers do in rehab homes that technically would require permits, but they are simple things and most rehabbers simply don't bother with the city on these items. By providing before and fater pictures and full details of each item fixed, you would have to have permits pulled for all those items (at least in some cities - including mine)

I agree, the before and after photos is probably overkill and may lead an owner to have more questions than answers. Also, seeing a before photo of the home in complete disarray could also be a major turn-off to potential homebuyers.

As far as permits, it's obviously not practical to pull permits on cosmetic upgrades including installing new air registers, plumbing fixtures, light switches/fixtures, etc, but any major MEP upgrades, additions or structural upgrades permits should be pulled, and I think obtaining permits can be a good selling point to lend your renovation credibility.

As far as permits, it's obviously not practical to pull permits on cosmetic upgrades including installing new air registers, plumbing fixtures, light switches/fixtures, etc, but any major MEP upgrades, additions or structural upgrades permits should be pulled, and I think obtaining permits can be a good selling point to lend your renovation credibility.

@J Scott - I think your perception and concerns are valid, yet your benefits of the blog are worth having. Perhaps not displaying addresses to photos on your blog would help "hide" the new buyer's home . . .?

I don't know if you guys have considered the possibility of someone intentionally looking for some kind of ammo to use against you to bring up a lawsuit. Not because there is anything wrong with the house but because they smell money...

In a way being very public could help in certain cases. It will show that you are not trying to hide anything and highlight your reputation and previous business dealings. The potential of someone using that as ammo in a lawsuit is far less than the potential benefits.