What is a Flipped Home?

A flipped home is a property that has been purchased, renovated, and sold for a profit within a short period, usually nine months or fewer.

A Longer Definition: Flipped Home

Flipped homes are properties that real estate investors buy inexpensively, repair and renovate, and then sell at a higher price for a profit. The flipping sequence typically finishes within nine months.

Flipped homes can attract buyers because of their upgraded features and modernized aesthetics.

Renovating a home to flip it may include minor cosmetic changes, such as new paint, flooring, and fixtures, and major renovations including overhauling kitchens and bathrooms, updating electrical and plumbing systems, and making key structural changes.

For first-time home buyers, flipped homes can be appealing because they appear to require fewer immediate repairs and improvements and can feel like a move-in ready home – and many times that is true. Sometimes, however, flipped home renovations are poorly performed and that can pose a risk.

As with all home purchases, buyers should commission a home inspection by a licensed home inspector as part of the due diligence process. A home inspector can conclude whether the flipped home is in sound structural condition.

Flipped Home: A Real World Example

Imagine a first-time home buyer who wants to make an offer on a flipped home.

The previous owner, an investor, had purchased and renovated the property rapidly, giving the home a fresh and appealing look. The buyer is drawn to the home’s fresh aesthetic appeal and its move-in-ready status.

However, as part of the home inspection, the buyer finds small indications that some renovations of the home were done in haste. A few floorboards are found to be creaking. The bathroom paint jobs are found to be sloppy. The kitchen hardware is low-quality.

Luckily for the buyer, these are only minor issues.

The home inspection shows that the home’s structure and major components, like its plumbing, electrical system, and roof, are well-built and in excellent rehabilitated condition.

The buyer and seller discuss the issues found, and the flipper agrees to repair the floorboards and repaint the bathrooms.

Common Questions About Flipped Homes

What are the signs of a poorly flipped home?

Signs of a poorly flipped home include uneven floors, hastily applied paint, doors or windows that do not fit properly, and other indications of rushed work. These signs may suggest that shortcuts were taken during the renovation process.

How can home buyers ensure the quality of renovations in a flipped home?

To ensure the quality of renovations in a flipped home, buyers should hire a professional home inspector. This inspector should thoroughly examine the property, focusing on the quality of workmanship, electrical and plumbing systems, and structural integrity.

What extra steps should be taken when buying a flipped home?

When buying a flipped home, in addition to a standard home inspection, it is advisable to get an additional assessment from a specialist, like a structural engineer, especially if major renovations are suspected. It’s also crucial to verify that all renovations had the necessary permits and complied with building codes.

Should buyers be wary of newly installed features in a flipped home?

While new installations in a flipped home can be appealing, buyers should be cautious to ensure these are not merely cosmetic improvements hiding underlying issues. Quality and proper installation of new features such as appliances, flooring, or roofing should be confirmed.