Concerns When Your Flip is Ready to Sell

There are a few things that you must be aware of and concerned with when your flip (house) is ready to sell.  When you “think” you have completed rehabbing a house and are ready to put it on the market be aware of some possible pitfalls and snags. 

First, you should have a punch list.  Go through the house to be sure everything is complete.  I have found that there is a tendency for many contractors to not be concerned with the small stuff.  For example, be sure that everything is painted and touched up.  Be sure all the doors close properly and all the door knobs are on correctly.  Is all the trim completed? 

In addition to the punch list being completed, you must get lien waivers from all the contractors who worked on the job.  You should do this before you hand them their final check.  This is a very important step for you so that you don’t unexpectedly have any legal issues with liens just before closing.

Two things to deal with once you have an offer on the house.  One is the inspection, and the other is the appraisal.  Many people will leave something obvious for an inspector to find just so he can justify his fee.  You should be sure that you have checked all of the mechanicals to be sure things are hooked up properly and working.  The boiler or furnace, hot water heater, all plumbing is working properly and there are no leaks, the electrical upgrade is done and the panel is properly labeled.  Smoke alarms and carbon monoxide detectors are hard-wired and have been tested.  Any fire prevention requirements have been completed as well.

When the appraisal is being done try to have your realtor on the premises or you be on the premises.  Be sure not to get in the appraiser’s way and do not annoy them.  You should be ready to answer questions and you may want to be sure that you and your realtor are prepared with comps to offer the appraiser in the event that he does not see a value as high as you have determined.

Paying attention to these things will help to prevent issues that may hold up the closing.  Do what you can to help the process run smoothly and get it done as quickly as possible.

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