Flipped House Questions
If you’ve ever watched HGTV, chances are you know what it means when someone says a home has been flipped. For those that don’t, a flipped house is one bought at a discount either because of the property’s condition or the seller’s need to move quickly. The investor then makes any necessary repairs or renovations and puts it back on the market for a higher price than they bought it for, reflecting the work they put into the house. If you are thinking about purchasing a flipped house, here are some questions you should ask before purchasing.
Do you get a home warranty?
Although a flipped house typically has new appliances, it doesn’t mean it has a new water heater, air conditioner, and furnace. Ask if the home will come with a home warranty. A home warranty is typically written for a year at a time and can help you save a lot of money if something breaks during that time. You can renew the warranty by paying for it yourself during your second year in the home.
Did the flippers have the right permits?
Ask if you can see the permits that the flippers used to update the house. This will help you ensure that the home is up to any safety codes and standards. You can also have an inspector check the property to make sure that the wiring is up to code and all changes were done correctly and safely.
What do the disclosures say?
If your state is a “full disclosure” state, the seller must disclose any defects of the property or anything that could influence the buyer’s decision. Ask your real estate agent to get a history of all the sales on the property. Look at how many times it has been sold, who owned it before the flippers, how long they owned it, and why they moved. After, look at the disclosures for any possible red flags.
What has been replaced and renovated?
Have your real estate agents to get a list of things that were repaired or replaced. While viewing the home, pay attention to the small details, such as crown molding or the tiling. If these aren’t done correctly, chances are that the flippers may have skimped out on the larger issues that will cost you money later.
How old are the windows and doors?
What about the basement?
If there is a basement, make sure to look at it. If it smells moist, it’s possible that flippers just painted to cover up any mold and moisture. A dip in the basement floor can be a sign of water protrusion. Before purchasing, make sure to have a radon test done.
What about the outside?
The outside is equally as important as the inside of a home. Check to see if the fence is in good condition. If there is a pool, make sure to have it inspected as well. You may have to get a separate inspector to do this. Any issues related to the pool can be costly to fix.