House flipping has become a common catch phrase in our current real estate market. This is when an investor is able to buy a home for below market value, fix it up, and sell it for a profit. Usually flippers who do this for a living are able to do things for a good price because they have connections and have experience. The appeal is that the homes are modern, stylish and turnkey. Since saving up for a down payment is one of the biggest hurdles in buying a home for a lot of people, it can be enticing to find a home that is finished so that the added expenses of needed home improvements do not cast a shadow on the home.
Unfortunately, not all homes that have been flipped are done in the best quality. All of the pretty new materials and trendy staging can blind buyers from seeing the imperfections. That’s not to say that all homes that have been flipped have not been done to perfection. So how does a buyer protect themselves and find their fairy tale home? Find out some easy steps not to cut as a house shopper.
Ask Questions
It is okay to ask for the names of the companies that performed the work. As a buyer you have a right to do your due diligence. Checking into the reputation of contractors and tradespeople on Yelp, Angie’s List, or Google can provide a lot of insight. Neighbors may have some insight as well. They may know more about the history of the house than the flipper who recently purchased it.
Check Permits
This is a great way to confirm that the work has been done to code. Also it can protect you from surprises later. After all you probably don’t want the city to come back and ask you to obtain permits and correct items that should have been done correctly the first time.
The BBB
Realtor Magazine recently did a piece on this topic and suggested that buyers could go so far as to check if the seller has had any complaints filed against them with the Better Business Bureau by past buyers. If they have, you may want to think twice before moving forward.
Inspect Carefully
It is always advisable to have a home inspection done by a professional. Make sure to have your inspector give the house a thorough evaluation. Just because plumbing fixtures look new, that doesn’t mean the pipes are all in good shape. Same with electrical systems and the roof. I have seen many homes where the roof appears to be in good condition, but upon closer investigation flashings have been done incorrectly or shingles have not been attached properly.
Flipped properties, when done with integrity and finesse, can be the perfect place to make your dream home. However it’s wise to do some digging and make sure that corners weren’t cut and costs not skimmed to meet the flippers bottom line. After all, you don’t want to get what they paid for.
By Holly Schwartz
Holly Schwartz is a realtor with Villa Real Estate who lives in Newport Beach and has been featured on HGTV’s House Hunters. She can be reached at HSChwartz@VillaRealEstate.com.
