A “flipped” home is one that has been purchased, renovated or remodeled, and is now listed for sale for a higher price than what it was initially purchased for. Most often, these homes are bought by investors that are able to buy the home for a good price (often below market value), fix it up, and sell it for a profit If you feel that buying a flipped home is a good option for your family’s needs, there are a few key points that you should consider.
Tip #1: Research the previous condition of the home.
If possible, find out what the condition was of the flipped home before it was purchased and renovated. Flipped homes are often purchased as bank owned properties, which usually means they were vacant for a time, which sometimes means there are some issues that need to be tackled upon purchase. If you can find out who the investor was or what company flipped the home, you’ll be able to determine if the quality of workmanship is good. Find out if this is their first home that has been flipped and/or what type of materials they generally use in their homes so you know what you’re getting into. Your Realtor will have experience with flip companies and can give you information as to their reputation.
Tip #2: Consider your financing.
If you’re considering buying a flipped home, talk to your mortgage representative beforehand. Sometimes, lenders and certain types of loans require that a flipped home be owned for a certain amount of time before they will lend money to a buyer. If you have specific questions about what loans you qualify for, a mortgage professional can help you get that squared away before you fall in love with a home.
Tip #3: Check for permits and get an inspection.
Many times, renovations on a home require permits or certificates of compliance. Do your research and see if the flipped home has permits on file and when they were obtained. Again, your Realtor can help you check into this.
In addition, any time you buy a home, it’s wise to get an inspection. It’s very important to get an inspection on a flipped home, as the inspector will be able to point out any defects or problems with the home, which can save you lots of money and frustration later down the road.
Purchasing a flipped home can be a great purchase for a buyer. But, as with any big purchase you’re about to make, it requires a little research. Ask those important questions and talk to your Realtor as well as your mortgage professional.