Flips. You’ve seen them – houses, especially in transitioning neighborhoods, that have been completely re-done for the purpose of resale. Lately, I’ve had some intense experiences working with buyers of flips, and as always, we learn something new with every transaction
One deal involved a cute ranch, that looked wonderful on the surface, but hid all sorts of unpleasant surprises upon inspection. Even more unpleasantness arose when sellers were reluctant to correct defects. There was drama right up to the day of closing, and it continued for a week thereafter!
In another, the buyers were aware of a number of things that were obviously done sloppily or just plain wrong. It’s a great house and they wanted it anyway, so they bought it planning to correct the problems, and budgeted money for that purpose.
In the process of all this, I’ve picked up a few pointers.
Eyes Open Not all flips are as sloppy as the two I cited above, but in a flip there’s an excellent chance corners have been cut somewhere. This isn’t a reason to cross flips off your list. You just need to be aware of this and go forward knowing not to expect perfection.
Inspect!! Inspect everything and find out whether anything is seriously wrong. If the fundamentals (foundation, systems, wiring, etc.) are good, the house meets your needs, and you like the price, go for it! You can replace a tacky bathroom faucet or repaint the living room later.
Know Your Bottom Line If there are defects the seller needs to correct, know what you ultimately will or will not accept. Then go in and bargain hard – always remembering that civility works best – and know when to walk away if you can’t get what you want.
Budget If you like the house and you want to live there, and you are deciding whether you can afford it, think about what you will want to correct and budget for that. Cheapo kitchen cabinets are considered an aesthetic issue and the seller won’t replace them. So, if you cannot live with the cabinets, budget to make the change.
Of course, much of this applies to buying any existing property. With flips, what often trips us up is that they usually look so perfect. Successful flippers load up on the eye candy. Buyers fall in love with what they can see at their first visit and are shocked to learn that the ductwork is falling apart or the brand new roof is so cheap it will last 3 years at best.
Of course, the best tip I can offer is to link up with a good realtor. Especially one who can make you a nice cocktail while you go over your repair request list …