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4 Things To Consider Before Buying A Flipped Property
Dated: July 29 2021
Buying a recently flipped home can be a beneficial way to avoid doing renos yourself.
It’s easy to jump headfirst into a flipped home because everything is shiny and new. However, it’s important to weigh the pros and cons to avoid issues down the road. Here's some things to examine prior to buying a flip.
1) Your Budget
You may pay a premium for a freshly reno's home. Consider it as somewhat of a convenience fee for being able to move into a turn key home. Just make sure the price tag doesn't strain your budget. It might be worth having to do a bit of work yourself to avoid being house poor.
2) How Fast Was The Flip Done?
If someone flipped an entire home from 1970s decor to sparking 2021 charm in a month, that may raise some red flags. Good isn't cheap and cheap isn't good when it comes to home renos. The longer an investor holds on to a property, the less profit they are making, and as a result they may be cutting corners on quality or safety- not a great situation for the buyer. Different projects take varying amounts of time to complete, but be sure to ask lots of questions about the flip process. Your agent will be able to help, looking up the date of last sale to help you put some form of calendar to the renovations.
3) Examine Everything Carefully
The old adage beauty is only skin deep can also apply to flips. While something may look shiny and new on the surface, what's underneath may be alarming. If you're able, this is the time where home inspections are key. They can help the buyer uncover anything hidden by pretty upgrades and help you decide whether the home is worth it to you or not if you do end up needing to do work down the line to correct mistakes. Look at the plumbing, the tile work, the foundation and eveything else that has been redone. That one random piece of new drywall may be covering up damage from a previous leak. It's always prudent to check over everything.
4) Ask ALL The Questions
Don't be afraid to ask questions, or have your realtor converse with the listing agent. Ask. Them. All.
Not sure where to start? Here's a few:
- Do you have the permits for these renos?
- Do you have proof the electrical is safe?
- What structurally was adapted?
- Was there any repairs or modifications to the foundation?
- Has there been any signs or mould- current or previous?
- Was the roof done? Is there a warranty?
- Was the insulation replaced?
- Was there any evidence of water, fire, or pest damage you encountered during the renovation?
These types of questions are critical in helping you determine if the home will fit your needs, and prevent you from being shocked if something down the line happens as a result of poor workmanship/products.
As the owner and manager of this full service real estate company, please feel free to contact me to place you with the best agent for the job. Our sales staff can accommodate you in your retirement r....