I'd be asking about permits and licensed trades doing the important work like electrical and plumbing. Absent any permits and inspections, I'd be moving on, no matter how much I liked the home.

If they have gotten the permits and inspections, then I'd develop an "as is" price, and offer that. They would probably appreciate not doing the work that needs doing, as they won't really make a lot of money on that unless they value their labor as nothing.

Thanks LWO. We will have a list of things in a formal offer, including permitting and licensed trades, as well as all necessary inspections.

It sounds to me like the realtor is trying to get to a price point, and they are wanting to hear from us about what spec we want in the house. I'd like to state basic things like solid wood cabinets, stone countertops, etc. I don't know what terminology I should use for bath fixtures, kitchen fixtures, lights, etc.

I don't want to do anything other than buy the house when they are done. I don't want to treat them like a GC, or me act like I already own the place and am hiring them to remodel it.

Unless you ARE treating them like a GC, and interviewing them as to their skill level and experience, I would NOT want them doing any alterations to the home. It's much better to get things done the way you want 100% after the sale than to rely on flippers to do anything other than use all surface and no substance materials to do the project.

Typical flippers use "solid wood" Chinese sourced 4K worth of cabinets that last about 2-3 years, but the specs sounds really good to those who don't know what to look for. An actual kitchen remodel averages 50K in the US, with 15-20K worth of cabinets. There is no way that anyone doing a remodel for sale will use the same quality components that you would use if you were doing the project vs. them trying to do it as cheaply as possible to maximize the return.

Whit461:

On a related note, what this couple is doing is illegal in Punta Gorda, Florida. When flippers buy and renovate houses there, they must live in them or keep them vacant for a year after obtaining their Certificate of Occupancy.

Most flippers don't like this and move on. If they disobey and sell sooner, they can be charged with contracting without a license.

I think it's a good rule. If you're rehabbing a place for yourself, the law has no effect on you. If you're a licensed General or Building contractor, the law has no effect on you. If you're a flipper who doesn't hire a licensed GC or BC, you're going to have your money sitting idle for a year in a hurricane zone.

Tre, I don't think this is how you meant it, but it sounds like you are implying that what this couple (current owners) is doing is somehow wrong or underhanded and that might not be the case at all. What is illegal in Punta Gorda, Florida may not be illegal in other locales, yes?

That said, I do agree that I would be very leary of purchasing a flipped house. I've seen the remodeling process in a few flipped houses in my own neighborhood and there's no way I'd want to own one.

So you're trying to negotiate a post-rehab sales price on a home that's currently pre-rehab?

That will be tough to do properly/accurately unless you agree on what the level of finishes and type of materials that will be used in the rehab. It's very similar to what you'd do with a GC if you were building. If you are vague about the materials and finishes, you could end up overpaying.

I think your 2 options are:
1. Be very specific about all the materials and finishes that you want, and agree on a purchase price with that in mind.
2. Tell them generally what you want, then negotiate a price once they're done and you see the quality of the materials and workmanship.

"Tre, I don't think this is how you meant it, but it sounds like you are implying that what this couple (current owners) is doing is somehow wrong or underhanded and that might not be the case at all."

Selling marijuana is illegal, but if your customer gets medical relief from its use, that's not "wrong or underhanded". If one of this couple is a licensed contractor, the issue is moot.

"What is illegal in Punta Gorda, Florida may not be illegal in other locales, yes?"

True that. I've since found out this practice is illegal in the entire state.

"So you're trying to negotiate a post-rehab sales price on a home that's currently pre-rehab?"

NEVER do this. That would be one of the worst ideas I have ever heard, for a number of reasons.

Just read around here for a while to reassess and form your own opinion.