With newly painted walls and new appliances, what's not to love in a flipped house, especially when they do it very well all the time on HGTV? Buying a flipped house can actually be exciting, but there are very critical things you need to equip yourself with to avoid future headaches.
A smart buyer must take these 5 tips to heart to prevent the flip from turning into a flop according to Trulia and Bankrate:
1. Get to know the sellers' reputation in the industry
If they have been around the industry and already sold several properties, you can surely find a bunch of their previous clients who could tell you about their credibility and their experience. If they are serial flippers, there's a big chance your real estate agent or home inspector know who they are so you might also want to hear about what they have to say.
2. Get a full-disclosure policy or something similar
If you live in Texas, which is a "full-disclosure' state, then you can definitely get one before you consider buying a particular flipped house. This policy requires the seller to inform buyers of each and every relevant detail about the house, such as all the changes they have made. Otherwise, if your state doesn't have the full-disclosure policy, you can request the owners for a written and detailed report of the changes that were done to the property - don't forget to have them sign it. Also, prospective buyers should be provided with permits or documents relating to works and upgrades, so ask for those as well.
3. Don't immediately fall for the shiny façade
Know the difference between a new bathroom and one that was just reglazed. It is not necessarily a bad thing, but you wouldn't want a reglazed house that was built more than 50 years ago. The surface may look spic-and-span, but there is a great probability that the piping circuit is rotten or is already beginning to. Also, when checking for plumbing and electrical system, do not forget to ask for the paperwork for proof.
4. Go for a professional home inspector, it's worth it
While it's good to have trust, it's also very important to verify. To make sure the sellers flipped the house and did a good job instead of just a surface job, it would be wise to get a professional home inspector to help you find out; every homebuyer should, all the more if it's a flipped house. Essentially, the inspector could pinpoint what were done improperly. Make sure to only hire one who is licensed, accredited, insured, and who's been in the business long enough.
5. Try the amenities as if you actually live there
When having a tour of the house, it's a good idea to walk in as though you are already living in it: test the toilets if they flush, turn switches on and off, run the faucets, and turn up stove burners. If you discover a problem, you can either request to have it fixed or bargain for a lower buying price.
