Buyer Beware of that Fix and Flip!
Recently, a client referred her daughter to me for a home purchase. I was elated to help this young lady purchase her first home. And because she is the same age as one of my daughters, it was even more special.
The home that she selected is a "buyer beware fix and flip." This type of home is typically bought as a foreclosure by investors, cleaned up and painted, and relisted for sale. There is little disclosure with this type of purchase and it is "caveat emptor" deluxe.
We processed the sale of this "buyer beware fix and flip" and all went according to plan, including coordinating funds for a new roof. This was a foreclosure, fix and flip type home that was being resold by an investor. On these types of homes it's a good idea to inspect everything with the idea you are learning about the home because there is no one to tell you about it. I have an awesome home inspector who goes above and beyond, climbing into 150 degree attics, walks tile roofs, and uses extra care with foreclosures.
My previous blog detailed that it’s imperative to inspect these homes to the NTH degree, and this inspector inspected it. These homes are “As Is” and we have no history from an owner, no keys, not a thing to tell us how the home was maintained, or IF it was maintained.
Today, I heard from my buyer two weeks after closing that she plugged in the soft water system and inadvertently caused a flood. Imagine not knowing that there was a hole in the line in the ATTIC of the home!!
Needless to say there is a lot of damage. My heart goes out to this young lady who had no idea that the soft water system would leak though-out the attic when she plugged it in for this "buyer beware fix and flip" home.
This soft water system is outside the scope of the inspection and not included in the report or the remarks. It’s difficult to explain the exact lesson here, except to say that buyers need to be cautious with anything related to water in a home. Review your inspection carefully before altering anything in a home. And make sure you have good homeowners insurance and a home warranty plan.