If you’re a fan of DIY videos and television shows, you’ve most likely heard of flipped houses. Redfin defines a house flip as “buying a home and quickly reselling it for a profit, usually after making repairs or improvements.”
If you’re shopping for a new home, you may have come across a flipped home. In 2020, house flips made up almost six percent of total home sales in the United States. While that is not a large portion of the total number of homes sold, the chances are that you will encounter a flipped home in your search.
1. Find out exactly what was done.
When you’re interested in a flipped house, the first step is to find out what renovations were done, then look at the property records. If a ton of work was done and the house is still affordable compared to what the flipper bought it for, they may have used cheap materials and cut corners.
Property records can also help you determine if the house is a flip. If the previous owner had the property for less than a year, they most likely bought it to resell it—this is normal for house flips. However, sometimes rushed construction work may also mean that the owner purchased a lemon and is trying to offload it on an unsuspecting victim. The bottom line is do your research.
While you’re in research mode before buying a flipped house, make sure you double-check that the proper permits were obtained. If they weren’t, getting permits will be up to you when you become the owner—a task that can take time and money.
2. Check for obvious mistakes in the renovation.
During the showing, take note of loose outlets, drafty gaps in doors and windows, or fixtures in strange places; these could be red flags when buying a flipped house. It’s also a good idea to turn on all the major systems and appliances and ensure they’re working properly.
If there are obvious signs of a poorly built house visible to the naked eye, you may want to pass on making an offer—it’s not worth spending the money to hire an inspector. Our ultimate home inspection checklist can help you determine where to look and what to look for.
3. Hire a qualified, experienced inspector.
If you want to put an offer on the house, an inspection is worth it for your peace of mind. Do your due diligence and find an expert with ample experience and excellent review history. This is one of our top tips for first-time homebuyers.
It’s also important to remember that general inspectors only review what they can see. So, if they recommend bringing in a specialty inspector to review something that looks suspicious, you should heed their advice. If anything arises during the inspections, you may be able to negotiate the sale price with the seller.
We realize setting up several inspector appointments can be challenging and time-consuming, especially in a competitive market. However, steps like these are essential, especially when buying a flipped house.
