Rehab is Complete on Your Flip - Now What?

So, you’ve finished one of the hardest parts of your flip: the rehab. You’re ready to hit the market, right? Not so fast, here’s a few things to consider before doing so:

1. Staging.

There’s some differing thoughts as to whether staging is worth the cost. The important part here is to make a conscious decision about staging. Talk to your agent. Do some diligence. Perhaps you just need to stage some of the main rooms - kitchen, a bathroom, living room, and/or master bedroom. If you decide to stage, leverage your network to find a rockstar stager. Consider whether the staging fee includes professional photos and compare the amount of time included for the staging (most common is 30 or 60 days).

2. Order appliances.

Consider whether you are ordering appliances. If you are, be weary of supply chain backlogs. If you’re not, talk to yourself agent about possibly offering an appliance credit to the buyer at closing, and virtually staging appliances to enhance your listing photos. A common reason to avoid installing your own appliances is to eliminate the possibility of a thief stealing your appliances while your property is vacant and on the market.

3. Re-inspection.

Retain your inspector or another local investor/handyman to walk your property with your rehab scope of work and check each line item to ensure it was addressed by your contractor. Better to find some mishaps now and before you hit the market. This is a relatively inexpensive due diligence step, and should not cost more than a couple hundred dollars, at most.

4. Get an updated BPO.

The rehab likely took at least four weeks, and in many cases, much longer. Your original ARV may be different, particularly if the market shifted. Seasons matter, too. In many markets, the demand decreases during winter, so be aware of when you are listing. Take a look at recent comps, and ask your agent to run an updated comparative market analysis for you to competitively price your property.

5. Cancel your insurance policy.

You’re not quite ready to cancel your insurance, and should only do so after the re-sale of the property closed, but set a reminder so you don’t forget. No point in paying insurance on a property you no longer own!

Comment below with your other post-rehab due diligence items! Whatever due diligence steps you find yourself taking, compile a checklist so you stay organized and ensure everything is addressed as you are hitting the market.