What Should you Know about Buying a Flipped Home?

Posted by Mike & Michelle Grizzell on Sunday, January 8th, 2017 at 9:20pm.

Investors BuyingOften, home buyers think a home that has been newly renovated is a new home. However, it may not be as new as you think. While the home may look move-in ready, it may not be as ready as you might think. On the other hand, if it really is a turnkey property, you will probably end up paying top dollar for the renovations.

TV shows featuring professional house flippers make the process look very easy and they usually have a happy ending. However, they don’t show the home going through a regular day with people living inside it or how it might hold up.

Before you purchase a flipped house or a newly renovated home, make sure you know what you’re getting. Here are a few things you should do to ensure you don’t run into huge issues after buying the home.

Always get a Home Inspection

While getting an inspection is always good advice when buying a home, it goes double for a flipped home. You don’t want to just assume the home is in great condition because it was renovated. It’s not okay to skip the inspection.

Getting an inspection gives you the peace of mind in knowing the contractor did the work properly and not just for approval from the city. The inspector will notice if the contractor cut any corners or if there were any issues missed. Make sure you pay close attention to the report and get a home inspector of your own.

Find Out About the Flipper

Professional house flippers usually come with a reputation. Some may have a great reputation while others not so much. You should try to learn as much as you possibly can about the flipper. This will help you to understand if they are known in the community as a reputable flipper or if others have had issues with homes they have flipped.

Hire a Real Estate Agent

Hire an AgentIf you’re unsure about going into a deal with a flipper for a property they are selling, hire a real estate agent to represent you. They will know what to look for and how to ensure the due diligence has been done. Your agent will also negotiate a fair price for you if the flipper is trying to get more than the home should be worth.

Along with these three tips, you want to pay attention to details as you go through the home. Sometimes, you’ll notice mistakes the contractor made or things that were overlooked before you even get to the home inspection stage.

Many homes hitting the market are flipped homes or newly renovated. There’s nothing wrong with buying this type of home. In fact, there can be many benefits, but you want to make sure you’re getting a solid property and not just one that looks new and pretty.

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