Renovation in progress and Offer in Place 😁

2 Replies

Hello.  I'm brand new to the forums although I've been listening to Bigger Pockets for a while now.  

My question..  I'm an experienced agent but working on construction for personal flip.  I'm about 85% complete and I already have an offer with request for some reasonable finishes to complete home and the construction of a new shop building.  

What's the best way to structure a counter offer to protect myself while completing improvements and construction of shop while we are in "pending" status?

@Shawn Sternick The 15% remaining, are they projects that can easily break the budget? Like unknown potential issues? If the 15% remaining items are pretty much set costs, (counter tops, carpet, paint etc.), you should feel comfortable putting together a typical counter offer.  If the remaining 15% includes projects that may have some hidden costs, I would counter after those projects have been completed or at least completely exposed so you can verify your budget for that item. For example, if the roof is remaining, I would remove the shingles (unless your are layering them) and make sure there is no sheathing/plywood to replace or any other 'unexpected' damage then you are more certain of your costs. Then you can feel comfortable with a counter offer.

Also consider whether the remaining 15% (and the shop building) are items you'd spend money on if it weren't for this specific buyer.  To say that another way, be careful of over improving.  If the shop building or remaining 15% do not add value above and beyond your cost then I suggest protecting yourself with a non-refundable deposit or some other assurance from this buyer.  Good luck!