How do you react to “Reply to Inspections” on flips

[Kyle McCorkel]

I’m flipping two houses right now. The first one had a higher price point and I had to wait about 6 weeks until I had an offer which I accepted. That buyer had an inspection and asked for every little thing (I think it was 12 different items, totaling $1200) to be repaired, would not accept a credit. I performed those repairs because I felt I had little choice with them being my only offer. That buyer ended up backing out at the last minute, but that is a different story entirely.

When I listed my second flip, it was completely different. There were three competing offers with escalation clauses and I ended up getting it under contract for well over list price. The buyer got an inspection, and asked for about 15 things (some minor, but some more substantial) to be fixed. Radon mitigation was one, install bathroom fan, re-grade around house, repair cracks in driveway, etc.

I feel like since there was so much competition for this one I have a significant amount more leverage. I personally hate being at buyers beck and call on these insignificant inspection repairs and feel like they should fix it themselves after they buy it. I’d rather just give them a $2000 credit and move on. Does anybody have a policy or preferred method for this? Since there was so much competition I feel like I could offer a credit and imply that if they don’t like it I’ll just find another buyer.

[Russell Brazil]

When you are selling a flip, you are selling a premium product.  You are selling a BMW, a Mercedes....you are not selling a Toyota Corolla with 75,000 miles on it.  When you sell a premium product, people have higher expectations of that product.  Every flipper should be prepared to send their contractor back in with a punch list of items to fix after a home inspection.