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Before You Buy a Flipped Property
A flipped or rehabbed home often attracts the eye of buyers. Everything looks so new! But you need to be aware of what might be lurking underneath...
Have you recently fallen in love with a "flipped" home? Does the idea of moving into a cleanly renovated space excite you? To see an old home tuned up with brand new appliances, gleaming marble countertops, and fresh wood floors can make other homes seem shabby by comparison, but be careful before you make the leap. There are some precautions you want to take before you close.
"Flipped" or "rehabbed" homes are homes which real estate investors buy in order to renovate them and sell them for a profit. Sometimes these homes have been secured after short sales, foreclosures, surviving relatives, or even at auction. For real estate investors, part of the profit depends on how fast and affordably they can renovate the property. In seller's markets, there's even more pressure to make sure a home is ready to sell, fast.
While there's nothing necessarily wrong with a flipped house, you will want to make sure you know a bit about the home's history. Naturally, you'll want to do all the due diligence you'd normally do when buying a home, but it can be useful to dig a little deeper. Here are some questions to ask:
1. What shape was the home in before it was renovated? Was it just outdated? Vacant? Trashed by squatters? Find out the state of the home when the flipper purchased it.
2. What deficiencies, damage, or other defects did the home have when the flipper bought it? Ask for a list of issues, if possible.
3. Who did the work on the house during the renovation? Contractors? Handymen? Did the flipper do the work personally? Are there invoices which detail the work completed and the money spent on the repairs? Were the appropriate permits secured?
4. Was anything left "as is"? What sort of issues were deemed too small or not vital to the renovation?
5. What was the legal history of the transfer of ownership? Short sales and foreclosures might have legal obligations on the flipper or other liens.
You shouldn't shy away from a flipped home you love, but don't go into the situation blind. I have experience working with buyers who have purchased flipped homes, and I'd be happy to help you navigate the questions. Let's talk!
Contact Me:
Laura Key
310-866-8422
My New Favorite House in Hancock Park
Call Me for More Details 310.866.8422
I see a lot of homes daily, so when I came across this beautifully restored home located in Hancock Park my heart leap. For the past two years I have driven by this beauty on my way home, but one day I saw a fellow agent placing a "For Sale" sign outside beside the lovely rose garden! I rushed home to look up the details and saw it was going to be an open house. That Sunday my first agenda was to see this house and what I found made me fall in love more.
- 8 bedrooms 8 Bathrooms
- 12 foot ceilings
- 3 Floors
- Private nooks
- Garage with additional living/working space
- Rose Garden
- Porch
- Mature tree in the front yard
- Apx SF 6000 on a 9470 Lot
This home has history, it was been LOVINGLY restored to it's original glory and no detail was spared. This home is one that you simply must see and in my opinion is priced perfectly.
The time is perfect to purchase your new home! Text LKHOMES to 87778 to find your next home FREE! My app gives you DIRECT access to the SoCal MLS. No more fluff, no more outdated listings....just homes at your fingertips! Call me today! 310.866.8422