Flip with Caution! Avoid a Nightmare!
What is a flip? A flipped house is usually a house that has been foreclosed on or short sold by a bank and remodeled by an investment buyer.
While these houses can be a great purchase, buyers should carefully examine and do their “due diligence” when purchasing a “flipped” home. People who flip homes are not exempt from making disclosures about the house. Disclosure rules vary by state, but there are steps to take to avoid trouble later.
Items to ask about include condition of home prior to flip, were permits obtained for work done, and was the work done by a licensed contractor. You should also ask if the contractor can provide the receipts for the work done so you can review them.
Investigate which defects were corrected and which ones were not corrected.
Ask the seller if they know any material facts about the property that you, the buyer, should be aware of.
Do not be afraid to purchase a flipped home. Just make sure that you get all the facts before signing that agreement of sale. Once satisfied, then you are ready to move into your new, beautiful remodeled home!
-Marie Roman RE LINC Real Estate Group, LLC