Buying A Flipped Home

What to Know Before Buying a Flipped Home: Tips from a Real Estate Agent

Are you considering buying a flipped home? As your trusted real estate agent, I want to help you make an informed decision. Flipped homes can be a great opportunity to purchase a beautifully renovated property, but they also come with unique risks. Let’s break it down so you can protect your investment.

What Is a Flipped Home?

A flipped home is a property that has been purchased, renovated, or remodeled, and then listed for sale at a higher price. Typically, these homes are purchased by investors who aim to improve them quickly and sell for a profit. While many flipped homes can be stunning, it’s important to keep in mind that not all flippers prioritize quality workmanship. Some may rush the process to move on to their next project, potentially leaving behind subpar work.

What to Consider Before Buying a Flipped Home

1. Learn About the Flipper

Not all flippers are created equal. There are some high-quality flippers who take pride in their work, and others who cut corners to maximize profits. When considering a flipped home, ask me to help you gather information about the flipper. Here are some key questions to ask:

• Is this their first flip, or do they have experience?
• Which contractors did they hire for the renovations?
• What materials were used during the remodeling?
• What specific work was completed?

Reputable flippers often have a track record that speaks for itself. Don’t hesitate to ask for references, and even speak to neighbors to learn more about their reputation. Quality flippers will also provide proper disclosures, permits, documentation, and warranties for their work.

2. Get a Home Inspection

Never skip a home inspection—even for a newly renovated home. While a flipped home might look flawless on the surface, underlying defects could exist. Since flippers don’t typically live in the homes they renovate, they may not be aware of hidden issues. A qualified home inspector can thoroughly evaluate the property, checking everything from the roof to the foundation. This step is essential to ensure you’re not purchasing a home with costly problems.

3. Research the Property’s History

Many flipped homes were previously foreclosures or bank-owned properties. These homes are often unoccupied for long periods, which can lead to issues such as burst pipes, mold from moisture buildup, or pest infestations. Understanding the prior condition of the home can give you valuable insight into potential risks.

4. Verify Permits

For any major work—including electrical, plumbing, HVAC, and structural changes—permits should have been pulled and signed off by the city. The seller should be able to confirm work was done with proper permitting.   If we are unsure, you check with the local building department to ensure all permits were pulled and finalized.  If you buy a home with unpermitted work, the city could require you to redo the renovations properly, which could be an expensive and time-consuming process.

Proceed with Caution

While flipped homes can offer modern features and stylish upgrades, it’s crucial to approach the process with caution. By doing your homework and asking the right questions, you can avoid potential pitfalls and make a sound investment.

If you’re thinking about buying a flipped home, I’m here to guide you every step of the way. Contact me today with any questions or to start your home-buying journey!