For flippers, buying, renovating, and quickly selling the home is a quick way to make a profit. Unfortunately for the buyer, not all flip houses undergo quality renovations. This can sometimes lead to unpleasant discoveries after the purchase of a home is complete. Before buying a flipped home, it is important to know more about what to look for and what you can do.
What Could Go Wrong?
Many flipped homes are exactly as they appear on the surface. However, you need to weed out the ones that are not. Part of doing that is understanding what could possibly go wrong with buying a flipped home. In evaluating a flipped home, it is usually not the major details that should concern you. The smaller details can sometimes point to a bigger issue.
For instance, nail holes that are not filled, handrails that are not properly secured, and a lack of outlets point to a rushed job. They could also be an indication that the flipper took shortcuts. If he or she took shortcuts on the smaller details, there is a possibility that some of the majors were shortcut, too.
Sometimes, the major details are also overlooked by buyers in the excitement of seeing hardwood floors and an updated kitchen. However, the HVAC system, chimney and roof, and electrical wiring could have problems that you are not seeing. These are considered major repairs and each one could easily be thousands of dollars to fix.
What Can You Do?
Since this is a major investment for you, it is important that you protect yourself. Part of doing that is ensuring your purchase agreement includes a contingency for the home inspection. If the home inspector finds an issue, you can back out of the purchase without penalty.
Simply including a contingency for the inspection is not enough. You need to have it done. Attend the inspection with the home inspector. You will have a chance to ask him or her about issues and get advice on whether it is worth moving forward with the purchase of the home. The decision is yours, but having an informed opinion does not hurt.
In addition to this, you need to ask the buyer for a home warranty. The warranty should be for at least a year. If there are any major repairs, the warranty will help to cover some or all the expenses.
Your real estate agent has experience with flipped homes. Rely on him or her to help you find one that is right for you.Share