Buyer wants to buy flip before completion and customize

[Sara C.]

Would love any thoughts on how to handle this situation...

We are about 3 weeks from completing a flip. All the finishes are purchased and are going in soon. Our realtors—who we have a great relationship with (they found us this deal)—showed it to a potential buyer.  It's not done and not for sale at this time. Anyway, this buyer LOVED it, wants to buy it at full price, but due to the unfinished nature of the home, got it in her head that she could customize EVERYTHING. She even told our contractors to stop all work while she was there viewing the house. She wants to take down walls, choose lighting, choose tile, etc (all of this has been purchased and install is scheduled out).

I told our realtors that we are not in the custom home business (I have no interest in that), and if the current unfinished state gives people walking through that customization is an option, I'd rather wait and not show it at all . Anyway, got a call this morning that they were back over there and she wants us to stop all work and she would like to buy it from us as is. 

The flip is in a desirable area and I don't expect any problems selling at it full price. So, I have no incentive to do this for her.

My realtor suggested we give her the right of fist refusal and we can go under contract after the flip is completed. I think I'm ok with that. But, she seems like a big "red flag" kind of lady and I'm not sure I want to work with her at all. I also feel uncomfortable with her continuing to go to the property and asking my contractor questions, telling him what to do, etc. 

Have you ever encountered this? Phew!

[Michael Hayworth]

I've had multiple houses sell before completion. I generally like it, but I probably wouldn't move walls. I've let them pick their own finishes. So what if you've already purchased the tile? Return it, buy what she wants, and adjust the cost if need be.  (If it's non-returnable, you're buying your tile at the wrong place.)

This business is about making money. You've got a customer that wants to buy your product badly enough that she'll probably overpay. Charge her extra for using her finishes and doing it her way. If she's too much of a pain in the butt, then sell it to her as is and let her finish it herself. Figure out what it's going to cost you to finish. It it's gonna take $20,000 to finish from here, then give her $10-12K off list, pocket the extra profit, and go buy another one. Do like a wholesaler and make her EM a NON-refundable deposit if you want.

We rarely have trouble selling our houses, but things can always go wrong  - buyer's financing falls through, inspector creates problems, whatever. Having a buyer who's that committed to the sale is great!