So Whom Do You Trust at Flip Time?

By
Real Estate Agent with Bill Cherry, Realtor 0124242

 

 

 

There is a 1960s home in a Dallas suburban incorporated city that had been owned by a family since it was built.

 

Recently the children of the couple who began their family's life there contacted a broker, who along with her husband, have been buying, remodeling and then reselling homes in an upscale area of Dallas known as the M Streets.

 

The  home needed to be sold because the owners could no longer live there.  The children asked the broker if she and her partners would buy the house.  They did.

 

Over the next couple of months, the broker and her partners renovated and updated the house.  Permits with the city were pulled for the work that required them. Those items were done by licensed sub-contractors.

 

The house renovation was completed at an expense the broker told me was in excess of $100,000.

 

Within a couple of days after the home was put on the market, the broker had multiple offers, a couple of which were in excess of the listed price.

 

The winning contract optioned the house and hired a licensed home inspector to evaluate the condition.  The inspector found many deficiencies remained, a serious number were code violations that the city building inspector had not noticed before the work was approved.  Many of them were addressed at new work done by the licensed sub-contractors.

 

The most serious ones were electrical issues, even with the complete new service that had been upgraded. 

 

The buyer decided not to exercise the option to purchase because of the enormity of the list.

 

The combination of the incompetent work of the licensed sub-contractors and the inability of the building inspector to condemn the work, for whatever the reasons, caused the loss of the sale.

 

This is another example of why it is always best to have a licensed home inspector go through a home before it is placed on the market. 

 

It reduces the chances of surprises.

 

 

 

BILL CHERRY
Realtor-Broker
Since 1966

Keller Williams Dallas Premier

Direct: 214 503-8563

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Topic:
Real Estate Best Practices
Location:
Texas Dallas County
Groups:
All Thing's Texas
Addicted to Active Rain
Advice for Sellers
Advice for Buyers
Tags:
flippers
licensed home inspectors
city building permits

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Rainmaker
719,234
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Yes Bill Cherry, A seller should always want a home inspection for the very reasons you mention.

What I find interesting is that in previous posts you were lamenting "flippers" not utilizing licensed professionals. Well, it seems that it doesn't make any difference.

Bill Roberts

Jun 07, 2015 11:42 PM #1
Rainmaker
519,855
Morris Massre
Pembroke Pines, FL
Real Estate Instructor Broward County Florida

I don't even know if that would have helped.  Every inspector has their own opinion. Maybe the contractor they hired was lame?

Jun 08, 2015 02:38 AM #2
Rainer
445,273
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Realtor / Author / Advocate/Short Sale

Bill, YOU are so right!   We have asked many fix n flippers to get home inspections done, prior to and after contractors have finished their work.  So many errors have taken place, too many to list here.  Message is, DO IT RIGHT!

Jun 08, 2015 02:39 AM #3
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

I suggest it's a 3 step process.  You're a flipper:  You should pull premits, you should use reputable licensed sub-contractors, you should have a licensed home inspector to study the property and make a written report on it before you ever decide to put it on the market.  

Jun 08, 2015 05:55 AM #4
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BILL CHERRY

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