Buying a home can be a stressful situation to begin with. Add in the factor of buying a recently flipped house and you could be looking a whole new level of issues. Do you trust that the flippers did more than just slap a new coat of paint up and add some new appliances to hide the real problems? Did they use a reputable contractor to do major renovations or was it a DIY that should have been a DI-don’t? That’s why it’s important to be prepared when you go house hunting and know what to look for and the right questions to ask.
Here's what you need to know about buying a flipped house:
Find out your potential new home’s history
When did the flippers purchase the house? How much time did they spend renovating? How much did the flippers pay for the house and house much are they selling it for now? What are the comps for nearby homes?
Look at the track record of your flippers
Ask around, you should be able to find out from previous buyers if they found their purchase to be a quality upgrade or a next level nightmare with hidden problems.
Find out if you can get a full-disclosure
Some states require a full-disclosure policy, meaning sellers have to tell the buyers everything they know about the house which includes the changes they’ve made. Even if you don’t live in a state with this, you can still ask the flippers for a written detailed report. A seller that’s not willing to give you a full account on the details of the home might not be a person you want to trust for such a big purchase.
The devil is in the details
Take a close look at the home. What do you think about the materials that were used in the renovation? Do they look cheap and low-grade? That's a sign of penny-pinching and may indicate the same methods were used where you can’t see them— like in the plumbing or electrical that’s buried deep in within your walls. By cutting corners, they have saved money, but it could cost you as the new owner in the long run.
Inspect Inspect Inspect!
Like you would with any home purchasing experience, you want to get a quality and reputable home inspector to do a thorough and honest evaluation of your new home before signing on the dotted line. If the inspection comes back with any major problems, you can use that in your negotiations moving forward.
With these tips, hopefully you will be on the right track to finding your dream home and not a money pit. Happy house hunting!
Here are some other resources we think you'll find useful:
How to Avoid Homebuyer's Remorse by Ferris Property Group
14 Articles All First-Time Homebuyers Need to Read by Ferris Property Group
Tips for Buying an Investment Property by Paul Sian
Top 10 Mistakes Homebuyers Make by Debbie Drummond
Older Home or New Construction - Which to Buy? by Michael Roberts Custom Homes
Buyer Questions: Should I Get a Home Inspection by Karen Highland