As a hard money lender, I want you to be aware of a disturbing trend that I’ve seen with many of our own properties. This trend is for buyers to pick your property apart and use the home inspection to renegotiate the price. You need to be aware – and be weary – of buyers who are fishing for a bargain and not emotionally vested in the transaction. They use the home inspection as a tool to renegotiate the price you’ve already agreed on. They demand more and more, and are ready to walk away from the contract if you don’t agree to meet their demands. As a hard money lender, I have several suggestions on how to handle such situations.
Selling Your Rehab
In our previous blogs we’ve talked about the art of pricing your newly renovated rehab property. To summarize it’s all about finding the balance between setting the highest price and not letting your property linger on the market. Let’s assume you’ve carefully done your homework and – voila! You now have an offer or two to ponder. It’s an exciting news, but as a grizzled hard money lender and a real estate investor, I have some words of caution. If you give in to wishful thinking and let your guard down at this stage, you can jeopardize the timely sale of your property. You might also lower its value in the eyes of potential buyers and kiss your best price good-bye. Do NOT get euphoric. Proceed with caution.