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Updated over 3 years ago on . Most recent reply

User Stats

15
Posts
9
Votes
Amanda Jewell
  • Real Estate Consultant
  • New Orleans, LA
9
Votes |
15
Posts

Tiered Flips and custom upgrades?

Amanda Jewell
  • Real Estate Consultant
  • New Orleans, LA
Posted

Hello BP Family!

I'm not sure if this is legal, a silly question, possible--and if so, how?

I have been toying with the idea of doing a basic renovation on a flip but then when showing the property, offering "upgrades" to increase the total sales price. Examples:

-In a house with a furdown in the kitchen, remove the furdown and the upper cabinets, add in floating shelves. Then at showing, offer to upgrade with upper cabinets if that is a deal breaker for the buyer--the increase includes a profit margin of course. 

-a house with a garage may appeal to most but offer to close in the garage to add a bedroom/bath, again with a markup. 

Is this possible? I was hoping to lower the cost/labor of the renovation with cheaper initial options and then allow the buyer to basically customize the finishes and work the cost into the mortgage rather than coming out of pocket for upgrades or seeking a construction loan. I'd appreciate any insight into this!

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