A Flip That Might Flop -
It never ceases to amaze me what I'll find during home inspections and todays inspection was no exception. Everyone knows that our housing market, like most markets around the country, is moving quickly for anything under $300,000. While interest rates start to "inch" up and inventory remains half of what it should be, buyers are forced to make quick decisions.
Due diligence has never been more important than when you're purchasing a home that is being re-sold as a "flip," a home that was purchased as a distressed property, remodeled, then resold at a profit. At every turn, we (John Elson, Inspect it 1st) break out our magnifying glass to "unearth" what might be a defect, flaw, or some sort of history on the property. This home inspection proved just that, a detective project for a Flip That Might Flop.
Part of selling a home in Arizona is providing the Sellers Property Disclosure Statement. It is required by law to provide everything you know about a home during your ownership and at the time you purchased it. Repairs, changes and modifications are SUPPOSED to be listed. This is your "GET OUT OF JAIL FREE CARD."
That being said, not everyone discloses what they know about the home they've purchased and are now selling, including quick resell homes, aka "FLIPS."
This home is a FLIP that Might Flop. What I mean is that the information provided about the history of the home is zero and there are numerous defects. Researching old listings I can tell you that the garage used to house the laundry room, but it now includes the Master Bedroom and a Bathroom. The back porch is now a Family room that used to have a window air conditioning unit on one wall.
These types of changes should be disclosed, but aren't always. It's always a good idea to get a thorough home inspection and infrared thermography is very helpful as well.
With these images, and leaning up against a wall, we happened to catch that a piece of insulation is missing in what used to be the garage, but is now a master bedroom. There is also a chunk of insulation missing where the window air conditioner used to be. Working as a team, my home inspector and I provide as much data as we can. Reviewing my laptop at the home for old listings, old information, and any data that might help to "unearth" defects is critical to a home purchase.
We've also since learned that the extra ductwork added and square footage is not sufficiently cooling the master bedroom, bathroom utility room much less the family room. We need a larger HVAC unit, among other repairs for electrical, plumbing, roofing and comletion of some of the changes.
Negotiations are ongoing and I'm hoping to pull this together for my buyer as I hate see a Flip that Might Flop.
If you're interested in buying or selling a home in the Phoenix Metro Area, give me a call.