Ask yourself, “Should I buy a flipped home?”

Ask yourself, “Should I buy a flipped home?”

There are a lot of different types of “house flippers” out there these days. Unfortunately, the way some of them flip houses makes you really ask yourself, “should I buy a flipped home?”  When it comes to analyzing the process, it’s really simple. Investors buy houses dirt cheap, fix them up, and then sell them for a profit. As any business owner will tell you, it is necessary to keep costs as low as possible—along with getting the most money out of whatever it is that you sell—if you want to make any money.

Apply this to flipping a house for profit, and you get people buying the house for the least amount of money possible—meaning the house is most likely in great disrepair—then getting the necessary work done for the least amount possible, which means they are taking the lowest bids and then selling it to you for the maximum amount they can get from you. So you tell me: Should you buy a flipped home?

If you do consider buying a flipped home

there are some very important things you must do in order to protect your interest:

  • Do your homework. Check to see how much it was purchased for by the person selling it to you.
  • Find out exactly what work was done. Ask if they got permits. Is the home in a historical district? If so, did they get the proper city approvals? Ask for before-and-after or progress pictures. Pretty much everybody takes pictures of everything they do these days, so if they aren’t hiding anything from you then they shouldn’t mind sharing them with you.
  • Get the home thoroughly inspected. A home inspector is a good start, but you need to pay a plumber, an electrician, an HVAC technician, as well as a roofer—at the bare minimum—to do a thorough inspection of the home you’re considering purchasing.
  • Other considerations. Invest in a structural inspection of the home and a home energy audit.

All these things will cost you money, but they are prudent and essential if you are considering buying a flipped home.

Rictor Contracting does not work for home flippers, mostly because we take a lot of pride in our work and value our spotless reputation with the Better Business Bureau. But, we want to make sure your home-buying experience is satisfactory and you find the home that suits your needs best. Although our specialty is custom home building in Phoenix, we do manage quite a bit of remodeling projects for homeowners. If you happen to purchase a flipped home and are unhappy with some of the work that was done, we’d love to help you remodel the space.

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