Buyer Interested Before Rehab is Finished

4 Replies

Hi All,

My fiancé and I are in the middle of our first rehab, a condo in a well known area of St. Louis, and we have a potential buyer who is interested in seeing the place and possibly buying it before we have completed the work we were planning on doing. Obviously, we are excited to have such interest, but are uncertain of how to proceed. I have some hesitation in showing the condo in its gutted state, but am open to selling early or customizing certain features. If the buyer does want to purchase the condo, we will put it under contract asap. We were wondering if any one on Bigger Pockets had encountered a situation like this or had helpful thoughts to share with us. Thanks!

Sally

Unfortunately I have learned this the hard way.  But I think (especially when you are starting out) its always better to wish you didn't sell it than wish you did.  If a buyer is interested and your in rehab stage than most certainly entertain it.  You can back out of the project as is and they can take over or you get the purchase agreement done and give them allowances for finishes. Either way you are both happy.  As Steve Miller says "Go on and take the money and run".  

As a rule I typically don't like to show projects before they are completed.  A lot of people don't have the imagination to picture the house in a finished state and it's more of a turn off to them.   But your milage may very and the buyer might be able to image the finished house. 

Unless they are investors, designers, contractors or experienced home owners, it may scare them and you will probably waste your time.

So I say entertain it but don't spend a lot of time chasing it.