There seems to be some hesitation among home buyers when it is revealed that a home is a “Flip”. In one sense I agree, you do need to be cautious. On the other hand, I’ve seen many, many well done and fairly priced flipped homes.
Here’s the thing… Do Your Research! How long has the current owner owned the home? For what amount was it purchased and what condition was it in? How extensive was the remodel? What quality of materials were used? Who did the work and were they experienced? At the very least you should request a list of renovations and receipts.
Mortgages and Flipped Homes – Home Buyers Beware
Another consideration is that there are mortgage regulations in place pertaining to flipped homes. Depending on the difference between the original purchase price and the selling price, your lender may be required to request supplementary information and there could be particular time constraints. In addition, under certain circumstances a second appraisal may be required.
Keep in mind that depending on the extent of renovations, the home could be much more energy efficient than similar homes built at that time, and that completed upgrades may prevent you from needing common repairs and maintenance that homes of the same age would normally require.
The whole process is slightly more involved when you’re buying a flipped home, but if the materials and workmanship are superior, you may be buying a home that’s literally as good as new!
Video: Before You Buy a Flipped Home, Know This!
Video Transcript: Before You Buy a Flipped Home, Know This!
Welcome to Today’s Home Update, I’m Kelly.
Home Flipping is the process of buying a home, renovating it, and selling it for a higher price.
Many investors, known as Serial Flippers, buy multiple homes and flip them in quick succession. As home prices are rising, home flippers are returning to the fold, snapping up properties or listing already (completed) masterpieces they’ve been sitting on while prices were low.
If you’re looking at a home that (is being) flipped, keep the following in mind:
- The history: check the tax records to see how long the previous owner owned the property. If it was a very short time, do your due diligence to determine if the home was an investment opportunity or whether the owner may be leaving because something is awry.
- The flipper: if information is available on the home’s current owner, and they seem to be a serial flipper, check out any homes they have flipped in the past. How do their previous homes look? Were the buyers of these homes satisfied?
- The permits: if any structural changes were made, be sure they were properly permitted and that the necessary inspections were done.
Taking these steps will help ensure whether a flipped home is right for you.
Thanks for watching Today’s Home Update, see you next time.
For more information, Call or Text: 602-999-0952
eMail: golfarizona@cox.net
Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
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