Posted by JPiper on November 08, 2000 at 24:51:09:
I don’t think there’s a way to accomplish that.
I have sold unfinished rehabs to buyers. What I typically do is collect a large upfront non-refundable earnest money deposit, that is passed through to me. The contract contains appropriate language covering the fact that this money is nonrefundable…see your attorney for this.
But reality is that the buyer can choose to walk away from the money. I had it happen about a year ago. You can’t force someone to buy if they suddenly get cold feet and choose not to. But a large upfront deposit that is passed through to you and is nonrefundable goes a long ways toward assuring that the buyer is serious.
By the way, you want to have them prequalified with no contingency for financing.
at the same time have the realtor that owns this property protected also?
Here’s the scenario:
The realtor/investor has this hose he had moved on to a vaccant lot in a older neighborhood.The house has been leveled,new electrical and new plumbing.He has expressed an interest in holding a small note till the house is completed (by me)then collect when it sells.
I have a prequalified buyer that just missed out on the purchase of the last rehab I did.He and his wife loved the extent we went to to rehab it and so is interested in me doing another home for them.(I show this other home tommorrow to them)I need a way to assure me that they will close after my rehab is complete and to also protect the realtor and myself.