Things You Are Wise To Do Before You Dip To Buy A Flipped Home
Are you considering purchasing an older home that has been remodeled by an investor? If so, you may have heard the term "flipping" at some point. Perhaps your interest in buying this type of home is piqued because you have seen television shows that broadcast the process from start to finish. There are a few things you should do before you consider buying this type of home.
Make an inquiry regarding the investor's flipping track record.
This does not mean that you have to go around your city asking everyone you know or everyone involved in the real estate industry about the investor. You will likely find that many of these investors are eager to answer some questions about their history themselves.
For example, it is wise to know how long they have been flipping homes and the approximate number that they have flipped. You can also inquire about whether they perform the renovations themselves or hire outside work. You can use this information as a potential indicator of shoddy work. For example, if you are considering a purchase from an investor who performs his or her own remodeling and usually hires two additional people, then flipping a high number of homes in a short time span could mean that the remodeling work performed is mediocre at best.
Check the home for signs of a rushed remodel.
Ensure that the doors and cabinets open and close completely. You should also look for gaps between areas such as tile and between vanities and the walls. Unfinished tile and grout are also potential signs of shoddy work. Molding, baseboards, switch plates and outlet plates should not be installed crooked or uneven.
Verify that home improvement permits and paperwork were filed.
When homes are rehabbed, permits are required. These permits are filed with local governments, and the information becomes public record. This means that you should not rely solely on the word of the investor. The information may be found online, or you can visit the local government office that handles zoning and building permits. If you do not verify this information and the home has a safety code violation, you might be held liable if you decide to purchase it.
Hire a home inspector to perform an in-depth inspection.
When you think of a renovated home, you likely think that means the home is "like new." This may cause some people to think that an inspection is not necessary. The investor may have had an inspection performed, but it may not have been an in-depth one. Hiring your own home inspector will ensure that the appropriate type of inspection is performed, and it will aid in ensuring that anything your untrained eyes missed is documented, which may save you time and money.
Areal estate agent is a good resource to use for assistance when negotiating with investors who flip homes. Agents have experience and knowledge related to these types of sales, and they will be neutral parties with a desire to protect you and the seller's best interests.