Key Takeaways
- Flipped homes often feature new renovations and modern aesthetics.
- Always get a home inspection to uncover potential hidden issues.
- Flipped properties can offer move-in-ready convenience for buyers.
- Check for quality workmanship to avoid future repair costs.
Article Summary
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.
Flipped Home: Explained in Plain English
Flipped homes are properties that real estate investors buy at a low price, repair, renovate, and sell at a higher price for profit. The flipping sequence typically concludes within nine months.
Flipped homes can attract buyers because of their upgraded features and modernized aesthetics.
Renovating a home to flip may include minor cosmetic changes, such as new paint, flooring, and fixtures, or major renovations, such as 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. They can feel like a move-in-ready home, and many times that is true. However, sometimes renovations in flipped homes are poorly performed, which can pose a risk.
As with any home purchase, buyers should commission a home inspection by a licensed home inspector as part of the due diligence process. A home inspector can assess 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, purchased and renovated the property rapidly, giving it a fresh and appealing look. The buyer is drawn to the home's new aesthetic and its move-in-ready status.
However, during the home inspection, the buyer discovers small indications that some renovations were done in haste. A few floorboards creak, bathroom paint jobs are sloppy, and the kitchen hardware is of low quality.
Fortunately for the buyer, these are only minor issues.
The home inspection confirms that the structure and major components, such as the plumbing, electrical system, and roof, are well-built and in excellent rehabilitated condition.
The buyer and seller discuss the issues, and the seller agrees to repair the floorboards and repaint the bathrooms.
Common Questions About Flipped Homes
Get answers to frequently asked questions about buying flipped homes and ensuring renovation quality.
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, such as a structural engineer, especially if major renovations are suspected. It is also important 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.
