With their recently painted dividers and new appliances, what's not to love in a flipped house? Purchasing a flipped house can be a good thing; however, there are some things you must keep in mind when buying one.
Here are some tips by Trulia and Bankrate:
Research about the seller. If they have been long enough in the business and have sold several properties already, you can look for their past customers who could give you an insight about their experience with the seller. Your land specialists or home auditor might also know them, and you can get an idea on how they work through such people.
Get a full disclosure policy. This approach requires the seller to inform buyers of every relevant detail about the house such as all the changes they've made. If full disclosure is not available in your state, you can ask for the proprietors for a comprehensive report on the renovations that were done to the property; don't forget to let them sign it. You should also have a copy of the documents detailing the upgrades.
Hire a professional home inspector. This is essential so you'll know if the sellers didn't simply make a "surface job." A home inspector can help you determine if there's something wrong with the house and those that were not done correctly. Remember to get a home inspector that's licensed, accredited and insured. It's also important that he has enough experience in the field.
Check out the flipped house's facilities. When examining the house, try to act as though you already live in it: test the toilets if they flush properly, turn switches on and off, run the faucets, and turn up stove burners. If you find something wrong, you can either demand to have it altered or negotiate with the seller for a lower price for the flipped house.
