Do any of you guys advertise your rentals while or before rehabbing?? I’ve been waiting until I complete the rehab but I’m thinking it may be more effective for me to get a head start on the process.
I personally choose not to show during renovations for the following reasons:
(1) Showing a torn-up property does not reflect properly what your properties should.
(2) A lot of folks cannot visualize how their things will look in a place that is torn up and has supplies, etc. all over.
(3) You may be exposing yourself to undue risk allowing folks on your construction/renovation site. If they get hurt, you know who’ll get the blame!
I put a sign in the yard as soon as I start work. It makes the neighbors curious. Since they’re nosey, they’ve probably already seen the property and I’m always surprised at how many people will “drop in” to see what you’re doing and come back regularly to see your progress. Once I have carpet and cabinets, I tell them to let me know if any of their friends/family/coworkers are looking for a place. By then they know what all you’ve done, how good it looks compared to what it was and they can market the place for you better than a realtor since they know the buyer personally…and they’re free. (I have offered a bounty for a buyer once or twice.) We sold our last rehab to a neighbor tenant six doors down whose lease was expiring. They were there almost every day. They brought mom and dad. We got full asking price.
I would never let a realtor bring anyone in until it was complete. This is a completely different kind of buyer who are out “looking at houses.” They cannot compare your torn up house with the saleable ones that they see at the same time.
Hello Cake !
I too put up a “soon to be for sale” sign the moment I get a signed agreement which includes right to market prior to close.
If some one is driving around looking to spend money on a home, The sign may be just enough to keep them from spending it till they have a chance to speak with me. I have sold many homes before and during the remodel. It does add a twist to the sale that even some builders do not prefer…customers who want you to change everything before the closeing. Those lights, this carpet, not sure if we like the look of that…yada ! I won’t show the property till after the sheet rock is done , painted and cabinets in. I will let them pick carpet and appliances, depending on the project and buyer, They may get credit for up to $2k for appliances meaning they can shop for the appliances they want and I will pay for the first 2k of the cost. They pay the rest.
Kieth is right about people not having any vision so I don’t show the property prior to kitchen cabs because it will kill the deal more times than not.
You can have your Cake and eat it too ! Darin
I tend to put a sign up immediately. Typically I have other properties nearby as well, so I can also show them those.
A person that can’t see through the clutter is also not going to wait for you to be finished with the work either. So, at worst they move on and find another place which they would have done if you didn’t advertise anyway.
However, you can get someone that can see through it.