Are you considering making an offer for a home that was flipped? If so, there are a few things you'll want to look into before you do. After all, most flipped homes require a lot of renovation work and the owners are in it to make a profit. The following are six things you should do before you buy a flipped home:
1. Do a little research on the seller
You might want to be wary when it comes to doing business with a serial flipper. Someone that seems to buy homes and flip them on a regular basis could be cutting corners, when it comes to fixing up their properties, in order to make a bigger profit. If the seller has a lot of experience flipping homes, then there's a good chance that your real estate agent will know about him or her, and will be able to provide you some valuable information regarding their reputation as sellers. If they're known for selling flipped homes full of shoddy work, you'll want to stay away.
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2. Have the home thoroughly inspected
Not only will you want to hire a professional home inspector to do a proper inspection of the property, you may also want to schedule more specific inspections for areas that the home inspector may not be as familiar with, such as roof, sewer line, chimney, termite and asbestos inspections. This may take a lot of time and effort, but it's important that you do your due diligence when it comes to buying a flipped home.
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3. Make sure the renovations were done properly
Ask the seller for a list of renovations that were done before they put the flipped home back on the market. You should also ask for the names of the contractors that did those renovations. Research those contractors to make sure that they are fully licensed and have good reputations within their industry. If the seller used an unlicensed contractor, it means they were trying to cut costs, which means they cut corners
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4. Determine the home's structural integrity
It is important to determine the structural integrity of the home. If the house is more than 75 years old, there's a good chance that repairs have been made to the foundation. If the house is that old and no repairs were done to the foundation, you need to have a structural engineer come out to inspect it. A poor foundation can not only cost you a lot of money to repair, it can also be quite dangerous.
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5. Find out if the plumbing or electrical systems have been replaced
Just because there are new lighting fixtures hanging throughout the home and there are beautiful new fixtures installed into the bathroom, doesn't mean there aren't problems hidden underneath. If the house was built before the 1950s, then ask the owner if the plumbing or electrical lines have been replaced. Otherwise, the plumbing could be rotting behind the walls while the electrical lines may not be up to current safety standards.
6. Check every feature as you walk through the house
Flush every toilet, run every faucet, turn on every light, and open and close every door and window. These may seem like small details, but if any of these features don't work properly, it means that the seller didn't pay as much attention to renovating the home as they should have.
If you're thinking about buying a flipped house, take your time investigating the house and the sellers to make sure that you're not being taken advantage of. Sellers that are flipping homes are doing so for a profit, not because they aim to live in them, which means they may be more willing to cut corners when it comes to renovations.
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