How to spot a flip
As a professional home inspector, I have seen just about every type of "home" imaginable.
From near defect free, to completely uninhabitable, I have seen it and inspected it. Yep, I have the T-Shirt!
One common trend in hot real estate markets is house flipping. Most everyone knows what a flipped house is thanks to the TV shows popular several years ago. In case you haven't heard this term, Wikipedia says "Flipping is a term used primarily in the United States to describe purchasing a revenue-generating asset and quickly reselling (or "flipping") it for profit. Though flipping can apply to any asset, the term is most often applied to real estate and initial public offerings (IPOs)"
Why does this matter? You might want to know when you're looking at a Flipped home. Many times, a flipped home is in adeqaute condition, and is not necessarily any better or worse than any other property.
HOWEVER, sometimes a flipped house is not a home you want to purchase. A flipped home is generally a home that was remodeled in one form or another to provide as much profit as possible for the person that bought it, pre-flip. Sometimes, a flipped home has lots of lipstick, and very little substance. See photo below....
Key areas to look for: New floors, new tile, new light fixtures, fresh paint, modern styles in a home that is not modern. All of these items are standard fare in a flipped home. The reason these items are so often seen in flipped homes is because they are all relatively inexpensive to replace.
The problem is that the high $$$ items in the home are usually the same as before the purchase by the home flipper. The HVAC system is usually ancient, the roof is usually shot, water heater is worn out, and the electrical system predates the concept of house flipping.
How do you avoid these pitfalls? Simple: call me. I always look past the lipstick to see the PIG!
#HGTV #realestate #lubbock #midland #odessa
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