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Is a Flipped Home a Good Choice for a San Diego Home Buyer

By
Industry Observer with Retired

Is a Flipped Home a Good Choice for a San Diego Home Buyer

I think the right answer lies in the property itself. Granted some of the property flippers know what they are doing and for the most part do a pretty fair job at rehabbing the property.

But the majority of real estate professionals have also seen the gloss overs creating what looks at first to glance to be a completely done over property but in fact it was just cosmetically addressed.

In any makeover, the biggest concerns are electrical and plumbing issues. Homes that were not well cared for can have quite a variety of hidden plumbing and electrical issues. 

A few examples are roots that have infiltrated the sewer lines, inadequate electrical service, aluminum electrical wire, none grounded outlets and switches, none copper piping, inadequate gauge copper piping, poor to no venting in Kitchen and baths, just to name a few.

So understand that putting a pretty face on a property is just that. The mechanicals are very important, especially for using modern electrical appliances and other technology in the home. 

If you are considering purchasing a flipped or made over home, get a reliable home builder to check it out for adequate plumbing, heating and air and electrical service. If it is a slab on grade construction, better check for slab condition as well.

Don't be fooled by a pretty facade, check it out thoroughly.

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Comments(20)

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Well said. We had aa buyer last week mad at us as during the inspection the home was found to have over 47k in repairs. Instead of thanks for saving him somehow we caused the problems on the home?

Buyer ... GET AN INSPECTION and know what you are buying before you buy!

May 12, 2014 11:21 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Solid advice William. A skilled inspector is needed. These are items the average home buyer may not know.

May 12, 2014 11:43 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

A good rules of thumb is that the flip will look good, now look beyond that.

Thanks William.

May 12, 2014 12:21 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

William, you need Jay Marchanich to do the home inspection.  He is a maniac who strikes fear into the hearts of sloppy flippers.

May 12, 2014 12:25 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

William

You raise an excellent question and things to think about. There is no simple answer. Certainly some flips are worth the money while others are clearly not. There are a host of issues to think about. We are seeing fewer of them than we were given the shifts in the market but they are still out there and new to be looked at carefully.

Jeff

May 12, 2014 02:02 PM
Roy Kelley
Retired - Gaithersburg, MD

Home buyers need to take extra care when purchasing a home that is being flipped. Some of the investors do great work but others become masters at covering up problems. A professional home inspection is always recommended.

I have flipped a lot of homes and we always tried to do all of the work in a professional manner since I valued my reputation in the business. We disclosed our cost and provided a list of the improvements and the cost of the work. Additional disclosures make buyers more comfortable.

May 12, 2014 10:59 PM
ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779
REAL ESTATE REFERRAL NETWORK - Asheville, NC
CONTACT janeAnne365@gmail.com

TOTALLY! As you point out, " In any makeover, the biggest concerns are electrical and plumbing issues... ." SO...how does a "flipper" finally finish  this

May 13, 2014 04:33 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

William, good advice, buyers should always consider a home inspection whether it looks like the home needs it or not and regardless of its prior ownership history.

May 13, 2014 12:14 PM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi William,

Some flips are good deals but some are overpriced and the construction is cheaply done. It all depends on the property and buyers should get a home inspection to make sure.

May 13, 2014 04:10 PM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

William, hopefully you are far from these horrible fires that are going on out there.

May 14, 2014 09:08 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning William,

Excellent advice for home buyers. Get an inspection to verify the mechanicals are in good working order. It all depends on who is doing the flips and the trades they employ. I've seen some do an excellent job but others..OMG..terrible!!!

May 14, 2014 09:25 PM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

Hi there William. This is great advice for flippers - everywhere! I'm much more impressed with a listing when the mechanics have been updated. Granite, new paint and carpet can't fix mechanical and structural problems with a property.

May 16, 2014 06:07 AM
Roy Kelley
Retired - Gaithersburg, MD

Have a wonderful weekend, William. Be sure to have your camera in hand to capture the special moments.

May 17, 2014 12:08 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Our main issue is unreported pest issues and dryrot. That kind of thing can be covered up and no home inspection will reveal all of it. It just stays hidden until one day your walls and floor collapse.

May 17, 2014 01:56 AM
William Johnson
Retired - La Jolla, CA
Retired

Hi Elizabeth, 

If any of the dry rot or termite damage is in exposed reachable areas, even if covered over, it can be seen in uneven paint finishes etc. I use a very small skewer that is used to secure the loose parts of a turkey before cooking. It is long enough and thin and strong enough. When I see these uneven areas, touching even lightly, the skewer will go in very easily . The probes used by pest inspector mar finishes even when there is no wood rot. Give it try sometime to retest some areas. On one house I found over 20 areas missed by the pest inspector. And when he came back, he found several more using my method that I couldn't reach. I gave him the skewer since there are so many in the pack that sell at Thanksgiving time. A little putty in any marks and while not 100% is better than the alternative.

May 17, 2014 04:08 AM
Lynn B. Friedman CRS Atlanta, GA 404-617-6375
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear William -
This statement of yours may come at the beginning but is the winner - "...gloss overs creating what looks at first to glance to be a completely done over property but in fact it was just cosmetically addressed."

That is an important reason to always insist the Buyer gets a Home Inspection from a qualified person like AR's own Jay Markanich in the Washington DC area.

Have a happy day -
Lynn

May 17, 2014 12:12 PM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Hey, William, that goes for people, too!!!  Check out what's INSIDE, thoroughly, as beauty is only skin deep.

May 18, 2014 07:02 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

William,

I agree with you. When I work with buyers, I always explain the difference between cosmetic repairs and costly repairs that are inevitable. Investors are smart. They are in it for a profit. To buy a home and live in it... well, that's another story, isn't it. 

May 21, 2014 04:23 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Good advice.  Some flippers do great jobs and allow FHA & VA buyers to purchase homes that they otherwise wouldn't be able too - some "put lipstick on a pig" as they say. -Kasey

May 22, 2014 01:31 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

The beauty of a flipped house is often only skin deep.  The electrical and plumbing are frequently in their original condition.

May 23, 2014 05:33 AM