In any given price range, every property on the market will have pros and cons. But, when you buy a move-in ready home, you don’t expect to need thousands of dollars for hidden defects and surprise repairs.
Real estate experts say that’s happening to many people who buy flips, especially at lower price points.
House flipping is not new, but as real estate prices skyrocket, many more people have been grasping at opportunities to buy property, fix it up, and resell it as the values continue to rise. The profits have been the highest in 20 years according to reports.
At the height of the pandemic real estate boom, many buyers were waiving inspections and other contingencies in their contracts to make their offers more attractive, which is an especially bad idea on flipped properties.
One of the most obvious advantages of flipped houses is that they are newly renovated and are more likely to be modern and up-to-date in both style and appliances. Flipped houses are usually ready for immediate occupancy rather than waiting for the sellers to move into their new homes.
Buyers should be discerning, flipped houses may seem up to date on the surface, but shiny new finishes can sometimes mask shoddy work. Often, flippers don’t make sure to permit everything, which is another reason getting an experienced inspector to take a thorough look at the property is crucial.
A sloppy flip isn’t always obvious but finishes that seem off can sometimes point to more serious issues. Alterations that seem rushed on the surface could indicate bigger problems, like electrical work that isn’t up to code or plumbing that wasn’t installed correctly. Addressing issues like that can become costly.
Many house flippers are good at what they do, but it’s also possible that an investor is simply covering up old issues with cosmetic fixes. Remember, even if they have a passion for design or working on fixer-uppers, investors are flipping houses to make money and they want these homes to sell quickly.
With careful consideration and due diligence, buyers can take advantage of a flipped house’s benefits while avoiding the risks.
It’s crucial to work with a knowledgeable realtor if you’re considering a house that’s being flipped, an experienced agent probably has a better eye than the buyer. And a realtor can easily tell if the home is a flip by looking at the property records. If the home is back on the market just a few months after being purchased by a new owner, odds are good that it’s a flip.
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