BiggerPockets

Has anyone ever marketed a rehab for potential buyers before the rehab was even complete?

I'm rehabbing a home now, and it's almost done. However, in an effort to get potential buyers interests, the outside was done first (there was little to do). I'm thinking of having these buyers drive by if they need to, but tell them that the home is almost done.

Has anyone done something like this? If so, what do you think are the potential pitfalls? One I can think of is that buyers will want to see the inside, and not being able to see it will turn them away.

I have thought of doing this too - early marketing. Anything to get an offer in ASAP. But I agree don't show the inside if its not clsoe to done.

What do you guys think of offering incentives to early close - say a granite counter instead of a formica one for example? Or color of tile or paint if offer placed before "X" date?

Diane

When we were building houses I would start selling before the slab was poured. I would advertise things like pick your colors, carpet and tile.

I have done that with rehabs. More or less if I was able to sell and collect a large enough deposit I was always ok with it. You just need to see if your potential prospect can see what it will look like. Which is rare.

reiwalf: I don't personally rehab properties so take this for what it's worth. However a buyer of mine that's bought a few rehabs from me actually lists the property right after he buys it from me, I did ask him about this one time just out of curiosity. He told me you can't say the wrong thing to the right person and you can't turn away the right buyer. What he meant by that is if he's rehabbing it and contracts it before it's done, then he already is looking for the next one to do. He says rarely has he sold a property during rehab but it doesn't hurt to have it listed just to have it listed. One last piece of advice he gave as well, he said make sure you don't complete the rehab to their liking b/c if they don't end up buying then you've got blue carpet instead of tan or white :roll:

Originally posted by Diane Menke

What do you guys think of offering incentives to early close - say a granite counter instead of a formica one for example? Or color of tile or paint if offer placed before "X" date?

Diane

Incentives do work if they're really interested or even just sitting on the fence. I offered a reduced security deposit or two weeks free rent for my rental in exchange for a 16 month lease and the tenant accepted on the spot. In my photography business I offer an early booking discount as well.

I begin to market mine as soon as I close on them. But also, most of my buyers are out of state and are a couple of weeks away from viewing the product so I normally have hem finished by then.