Here's the Scoop on Flips
What to look for and what to avoid..
As anyone who’s searching for a home knows, it’s nearly impossible to find a move-in ready home that’s still affordable. This is why flipped homes are on the rise. However, there are “flipped homes” that claim to be remodeled and the remodel is purely cosmetic, leaving the buyers with work still needing to be done on the home. So why should you care if it’s a “flip” and how do you sort out the good from the bad?
The research is not very difficult and is very worthwhile to invest time and energy into if you’re considering buying a flipped home. I’ve compiled a list from my own knowledge as well as an article that covered all the bases I didn’t. You can find the article information at the bottom of the page (Article Title: “Nothing Wrong with Buying a Flip As Long As It Is a Good One” By: Glenn Setzer)
So first off, why should you be concerned if the home is a flip? Either way you’re getting a good home right? There are several reasons why you should be aware if you’re buying a flip and a good or bad one at that. If you think the home is a flip, take a drive to the county land office or registry of deeds where real estate documents and past records are kept. The deed that is included in these records will tell you what kind of history the home has; who has sold it, for how much and to whom.
Often times the past seller of the home can tell you a lot about the home’s history. Was it sold by a broker or an individual? If the home was sold by a construction company or an independent contractor there is a vastly different “expense ratio for any work they did on the property” than a non-builder. Meaning if it’s sold by one of those companies that buys up houses, they may have deeper pockets and aren’t so “forgiving” on lower offers.
Check out their websites, their testimonials, past deals they may have made and posted, what do their advertisements look like? Etc. This will give you a better idea if this is a company that is out to make a hefty profit or if they legitimately sell affordable remodeled homes. Now knowing the history of the home and the company who had sold it last you can better estimate an offer that’s fair.
However, there is a strong stigma among buyers to immediately red X any flip they see. Why? Well, there are very good reasons to avoid flips that are from sellers who just “put lipstick on the pig” so to speak. So time to get your flashlight and clipboard of checklists and hire an inspector. Make sure this inspector is experienced and very thorough. They will easily be able to tell if problems in the foundation of the home are actually repaired or simply covered up. It’s also a good idea to insist the inspector to pull the electric box and check for signs of corrosion, damage or shoddy wiring like an aluminum wiring. He will also be able to tell if there’s been any flooding under the house and in the attic.
What kind of appliances are we looking at? They may be new, but they could also be the middle range appliance from Wal Mart that will break within a few months. Do they have a factory warranty? These are both good questions to investigate.
There are plenty of great flips out there mixed in with the bad. Do your research, trust your instincts and always get an inspector. I’m Lynn Tardibuono and I “certify flips” in Sonoma County. I have specific “flippers” who I represent and they actually do the work to make sure the house is truly move-in-ready or turn-key and I work to make these affordable for you! For more information on my certified flips check out our website listed below or give me a call.
For the article click this link.
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link!