Marketing a flip before rennovations

[Benjamin Haberman]

Hello BP community,

I am closing on my first flip on Monday the 29th. Its been a roller coaster so far. Underwriter has been making us jump through hoops for past two weeks. Decided to go out and find an investor. Turns out we hit it off and they are ready to close with us on Monday. at 33% partner. There are a lot more details but I will discuss that in another post. I want to keep everyone updated on it. Here is what we are dealing with right now.

Purchase price- $126098

Rehab-$30

ARV-$249950 (list price)

First question I had- Has anyone experienced with marketing a flip before the work is done so the buyer can choose their materials? Figured it would be a good way to get the word out. However, our partner brought up a good point. Maybe its not a good idea to show a cat piss smelling beat up house before the rehab! I kind of agreed with her. That is a very good point.

Thanks for your time!

[Mike G.]

I wouldn't do it.  It is hard for people to look past the mess and envision a final product.  And even if they can, they will always see that mess in their mind when looking the house.

I also don't recommend letting a potential buyer choose finishes for the house unless you get a nonrefundable deposit that will cover the cost of replacing their finishes with something that won't be their specific taste.  Otherwise, if they back out of the purchase or can't close, you are stuck with whatever finishing materials/colors they chose.

In other words, keep it simple.  Renovate the house to a nice, neutral style that matches the area, then market it.