Tips for Flips

With local values soaring, the “flips” are ever prevalent in Kensington and Talmadge. While every investor who flips properties are not the same, there are some common themes to be aware of if you should choose to purchase one.

When purchasing a flipped property, it is important to keep in mind that the seller, or “flipper” is there to make a profit. While the home you see may present as practically brand new, know that it is not. An investor will cut corners where they can in order to maximize their profit. If something is working but not brand new (such as a 30 year old furnace) and not visually apparent, many times they won’t address it prior to marketing, and often they won’t address it during the sale. Many times this does not become apparent until someone (an inspector, usually) has crawled under the house and explored the attic and roof. When buying a flipped property, you are purchasing a cosmetically upgraded home, but not necessarily structurally upgraded.

Always be on the lookout for permits on any newly added sqft and/or when bathrooms are added. Most investors are smarter these days and are pulling permits when carving out an additional bathroom in these older homes, however every once in a while I come across those that have not. It’s important to make sure that integral parts of the home such as bathrooms are permitted. After all, you are paying a premium for this additional feature and you want to be sure it was done correctly and with permits so you don’t have an issue when you go to sell it in the future.

Request a list of all items that the investor repaired/replaced so you are aware of what they touched and did not touch during their renovation. This will help you better understand the history of the home.

I have sold many flips in my time and am here to help guide you through the process. When buying any property, you will always find needed corrections. It is always my goal to assist my clients learn as much about the home as possible during the escrow process so that they are making an educated decision about their purchase. Feel free to call me any time to discuss how I might help you at 619-944-2798 or email me at Megan@MeganB.com.