Selling pre market

[Benjamin Haberman]

On my second flip. Have buyers willing to go under contract within next couple days before we are even finished. We came to an agreement on price and agreed any additional add ons would be added to purchase price. They've confirmed they want 3 add ons. Concrete driveway($8 k), finish garage ($10k), and a new roof ($4 k). I'm concerned of a couple things. 1. Doing all of this work before we close. Any recommendations to make this more worth it? Bigger deposit? 2.the home not appraising with all of the additions. Any thoughts? Thanks so much

[Julia Blythe]

We have pre-sold several of our flips. We always put an addendum in the sales contract that makes the buyer pay a certain amount (usually $10,000-$20,000) that is payable to us whether they end up closing or not. It's a simply paragraph my closing attorney wrote up with our first pre-sold flip. It is not linked to appraisal, approval or anything. Basically, I allow you to pick out things for the house before you own it, you will pay this money as protection to me. If you close on the house, it comes off the final price of the house. If you don't ever close, I keep it because I have just painted my house in colors I might not have picked or purchased light fixtures I might not have picked. You have to be serious if you want to change my design plan before we are done with a house and put your money where your mouth is.