House flipping is the process of taking an old, run-down house and turning it into a much more beautiful home. Real estate investors usually do this in hopes of buying a low-cost house and selling it for profit. And in most cases, this works out; they make a home appealing and comfortable and turn a profit from the entire process. However, some house flippers only do the bare minimum for the house to be appealing. This is why you need to be careful when considering a flipped house. To help out, we have put together a list of helpful tips before buying a flipped house.
Risks of buying a flipped house
There are some pretty significant risks when it comes to flipped houses. First, you need to make sure the renovations are up to standard and done correctly. While most house flippers know what they're doing, some might just be covering up old issues to turn a quick profit. Another potential issue is compliance; there are rules and regulations around additions to existing buildings. This includes additions such as new rooms, and the developer must file the correct permits before proceeding with the project. As a new house owner, you'd be legally obligated to bring your home up to code. There are many common causes of buyer's remorse, but these can get pretty expensive. So, before deciding to buy a home that has been flipped, make sure there are no hidden issues. It would be best if you didn't take chances with so much time and money at risk.
Advantages of buying a flipped house
While there are definitely risks to it, buying a flipped house has quite a few advantages to it as well. For one, you can be confident that all the renovations are fresh. In other words, the house is ready for you to move into it immediately, as long as there are no hidden issues. Also, because the renovations are fresh, the house is modern and up to date in both appliances and style.
Additionally, sellers usually can't move into a new home until their current one is sold, and there is a delay before you can move in. But, this isn't an issue since house flippers don't live in the homes they sell. This means flipped houses are perfect if you need to move out on short notice. You only need to worry about organizing the move, which can be difficult when trying to handle it in a hurry, and you're looking for last-minute moving tips to help you.
Verify the contractor
With the advantages and risks pointed out, you need to know how to spot hidden issues with a flipped house. So, firstly, ensure the seller hired a reputable and licensed contractor to deal with the renovations. If they didn't, you could face all sorts of issues, from needing to pay for repairs after moving to dangers left behind by amateur handiwork. If the home seller has employed a dishonest or unskilled contractor, all of the issues will pass on to you to deal with. Needless to say, this is a risk that you shouldn't take, and you should always research the contractors. Of course, maintenance is vital to any homeowner, and there are essential home maintenance tips that can help with that. But if you can avoid paying needlessly for repairs, then you should. Especially in a home which you have only just moved into.
Review all permits
While paying for repairs is bad, legal issues with a new home are much worse. So, before you opt to buy a flipped house, look through all of the related documentation. If work has been done on the home without the necessary permits, it's most likely not up to code. Reviewing the permits, you can see if the property has any outstanding fees. To see this documentation, go to the website of the city the house is in. If the records aren't kept online, try calling the building department or development department to see if they can help you. Additionally, experts from Helix Transfer & Storage note that you should never move into a flipped house without making sure there are no hidden legal issues. The last thing you want to happen in your new home is a housing inspector showing up one day.
Work with a home inspector
Finding a third-party home inspector to have a look through a potential flipped house is a great idea. Experts can spot shortcuts and other issues that regular people might not. Problems with the HVAC system, electrical wiring, plumbing, and drywall are too common in these cases, and an expert home inspector can spot them all. Additionally, a home inspector will take steps to ensure the house is structurally stable. Knowing how to decide on the best house size for you and your family is essential, but you should worry about making sure the property is safe before buying and moving into it. Buying a flipped house has a lot of benefits, but only if you can ensure there are no problems with it. So, remember to hire a professional home inspector and bring them with you when looking at one.
What to consider before buying a flipped house – closing thoughts
Flipped houses are, typically, beautiful homes that you can move into quickly. That said, they also come with many risks that can't be ignored. While most house flippers are honest and do their diligence to make a home livable, some only want to make a quick profit. In these cases, they will do the bare minimum to cover up the old issues of a home before selling it. As such, it's imperative to be able to spot the hidden problems with one of these homes before deciding to buy one. We hope this list of what to consider before purchasing a flipped house helps you avoid a house with hidden issues.