Hello all! I am excited about being part of the BP community. I have completed several fix and flips and have always waited for the reno to be 100% complete before hosting any buyers. What are your thoughts on trying to market a buyer while the renovation is in process and maybe allowing them to select finishes etc..of course it would have to be a firm offer before that point...
Thanks and look forward to your shared experiences:)
I wouldn't necessarily see a problem with it. On the contrary, I would see it as a huge plus as you just cut out all your marketing costs and who knows how many weeks/months of holding costs. Just make sure you have a pre-selected set of finishes they can choose from so they don't blow your budget asking for high-end granite countertops and a fully finished basement with wet-bar when you've only budgeted for mid-range granite and an unfinished basement. Unless, of course, they're willing to write into the contract the additional costs! Good luck!
I've avoided this personally for a few reasons:
1) My flips are done well and priced right, so I don't have an issue with time on market. (therefore I don't need to create a solution for a problem that doesn't exist)
2) It will take extra time to deal with the buyer on choices, changes, etc. - time I could be using to find my next project.
3) The first week on market is generally my most active time - I want my product be 100% ready to make a really good impact (instead of looking like a work in progress).
I'm not saying this strategy won't work, I'm just saying that for me there are more cons than pros. I think if you are doing enough volume, and are building a brand around your homes, you may have better success with this strategy.
An alternative strategy would be to call around to agents that you know and let them know you'll have a finished product ready in x number of weeks. If they have a buyer who might be a fit, it may make sense to do a private showing for them (instead of a mass market mls listing). If i'm not mistaken, @Jscott has done this before.
Why not just market and explain your end date and projected price but no show the property until it's complete. Let all parties who respond to your marketing know the will be given preference and will be allowed to see the home prior to MLS and agents getting access. This can create a sense of urgency if you get 4 to 5 people through the house at the same time. And you won't have to worry about adding or deleting items that might be detrimental to your end product should a specific buyer be unable to perform.
Thanks for some awesome feedback from all of you! A lot of great points to consider. Brand and product reputation is very high up on my business plan.
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