Buying a Flipped House: 3 Tips

how to buy a flipped house

A flipper, in real estate, is someone who buys a property, renovates it, then puts it right back on the market in hopes of making a profit. Some buyers assume that a flipped home will therefore be free of problems. But there are reasons why you shouldn’t make such assumptions. Here are three tips for buying a flipped house.

1. Get the home inspected. Get a home inspection to check the contractor’s work. Were things done to code? Did the contractor cut corners or do the bare minimum because they were under a tight timeframe to “flip?” It’s worth paying for a home inspector to check the house from top to bottom.

2. Double your due diligence. When you assume that buying a recently renovated home means you have nothing to worry about, you may not do the necessary due diligence on the contractor’s work. That can be a costly mistake.

Did the contractor take out the necessary permits for the work? If so, were all the permits signed off on? If you aren’t given copies of all of the job cards or finalized permits, ask for them. If you don’t get them, look them up online or go to the local building department. Any permits taken out or applied for (and officially signed off on) are public record. Bottom line: Never close on a home without making sure all permits were cleared. Otherwise, you could be on the hook for illegal or bad work.

3. Find out who the flipper is. Ask your agent to if he/she is familiar with the flipper. Are they experienced contractors with a history and good reputation in your local town/community? A flipper with a solid reputation should have nothing to hide. They should be open and free with disclosures and provide you with all documentation and warranties. A good flipper wants you to be happy, too. They don’t want calls from you or attorneys a year later with complaints about their work or liability issues.

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