What's Behind Those Pretty New Walls

Hi Margaret,
There are a lot of Do-it-yourself flippers out there.   It's scary. “Lipstick on a pig” immediately came to my mind!  A beautiful renovation can make a buyer fall in love at first sight, but new flooring, fresh paint, and sparkling countertops don't tell you what's lurking behind the walls.

Absolutely right. Researching what was done, and how, is so important. As Carol indicated, it could just be "lipstick on a pig!"

Good morning Margaret. When we were looking to escape the city for the suburbs we looked at many townhomes that were flips. It was easy to spot the do-it-yourselfers but harder when some of the work ws done by professionals. The big question was "is all of the work permitted?". And when they stumbled to answer, my reaction was "next"! Enjoy your day.

Good Tuesday morning, Margaret. This is good information to share with prospective home buyers.

Hello Miss Margaret Rome Baltimore 410-530-2400 

"The question is what was actually done behind those beautiful new walls."

I've guided many buyers through this process.  Often a "flip" consists of cosmetic renovations only ... the quality speaks volumes. 

Margaret these are excellent questions to ask, and suggested precautions to take.

I remember that years ago one of our members was a home inspector who posted about his adventures. In one he told about walking around his own neighborhood and stopping to visit with a flipper who was working on a house. The man actually bragged to him that no one would notice the rot around the windows after he finished installing new trim. 

And then guess what? He got the job of inspecting that house for buyers! 

Goes to show - if you're going to be a crook, don't brag about it! 

Good evening Margaret Rome Baltimore 410-530-2400 so very true, what could be behind the walls or under the slab. I just had an agent ask me about a house that sold for $50,000 and now it was for sale for $289,000. Go and behold, the house had a sinkhole issue when purchased. It has been renovated and updated and it appears that there is nothing wrong with the house. The agent is doing is research and will be providing what he finds to the buyer. It is now up to the buyer to decide if he wants to move forward with an offer.

The flippers are still abound. They have the tendency to agree initially. When it comes to purchase they want to go through a low ball movement to get out of a commitment. 

Good evening Margaret,

As a buyer's agent it is important to ask these questions and receive invoices and warranties to pass on to the buyer. There are investors who have good contractors and there are those that try and do the work themselves. Permits are always an issue and need documented. We can go on line to the City of Austin to check for permits and if they are closed out or if they were ever pulled. A home inspection is a must!!

  Hi Margaret Rome Baltimore 410-530-2400 

             I see at least three comments above that use the classic term "Lipstick on a Pig".   Sometimes that lipstick is easy to spot, but at other times a savvy Flipper / Investor / Renovator can do a good job of hiding "what's behind those pretty new walls".

    When a Buyer has a serious interest in a property,  I look at the chain of Title (easy to do in Leon County Florida, using the Property Appraiser's website, OR ask one of my contacts at a local Title Office to take a look at it for me (which they will do gratis, thank you).    I will also take a look at MLS, and even Zillow, to see when/if this house was previously for sale.

     When I see a recent sale or sales, I want to dig in further.  WHO was the person or entity that bought this property for a low price, and is now asking a significantly higher dollar amount?   Some Flippers use the same name on anything they buy, others are more savvy, they create a new LLC or Corporation and take ownership in that name.  Nice try, but I can spot it every time!

      Some Flippers are above board, they bring the essentials up to Code (wiring, plumbing, roof, HVAC, foundation).  My brother is a licensed Building Contractor, he has bought many a broken down house, then spent the time and money to do it right. 

    But far too many others have bypassed those expensive items.  All they have done is install new carpet, new paint, new countertops, and throw in some expensive top of the line kitchen appliances.

      Do your homework before making an Offer on that property!   If "what's behind those pretty new walls" is old, outdated, or especially if so-called repairs were done by unlicensed Good Old Boys, walk away!

Some investors only want to hire the contractor with the lowest bid. It may be low because he cuts corners. There is an old saying that should be remembered about fast and cheap or slow and priced correctly.

Margaret, A beautifully renovated home can be an excellent purchase, but fresh finishes should never substitute for proper due diligence. Permits, documentation, qualified contractors, and independent inspections help buyers determine whether the quality behind the walls truly matches what they see on the surface.

Sometimes what’s behind the walls gonna be more interesting than the actual wall and you definitely made this pretty entertainingg!

A fresh renovation can look great, but the real value is in the work you cannot see. Permits, documentation, proper inspections, and qualified contractors matter far more than new paint and finishes.