I'm currently rehabbing a house. It's estimated to be completed by middle of next month. Should I put a for sale sign up to attract the people around the neighborhood to lock something in before it's ready? Or do I wait until everything is ready and then list it?
I'd wait. Anytime I've tried to contract before the house was complete, its been a total pain in the ***. Granted, our market has lower inventory right now, so it makes sense to put out on the market when completed and let 2-5 buyers fight over it and we get more $$ at the end of the day.
@Kayla Truong a "coming soon" sign is always good but a pre sale is a double edge sword. I can go on for hours about it but in general most buyers will use emotion to buy homes in general with that being said if you sell it before you are finished and the buyer decides they want to "change" or "pick" certain finishes etc. this is the most important part ----make them pay upfront the cost of the change plus the cost of what it would cost you to put it back how you had originally planned it. This money is non refundable if they close obviously it goes towards the sale price. In general the more out of pocket cost they have the less likely they are not going to walk away from the deal. Plus you will have the headache of building a property for someone!
I typically do not presell rehabs unless I am very close to finishing. But coming soon signs and good marketing prior to coming to market is always a plus. Good luck on your project.
Wait until it's 100% complete and staged before allowing buyers through.
Thanks for all your advice! I'll wait until it's ready.
Kayla, I've had different results than Anson. When I'm 2 weeks out from completion, I put a sign out to start attracting buyers / buyer agents. I keep their emails in the file and promise to let them know as soon as it's available for showing. If the buyers are not represented by an agent, I will get them into the house first and will do my best to get them all there at the same time to create a sense of urgency. I will also put out a flyer at the same time the sign goes out to give basics on the house...beds, baths, s.f., updates and price.
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