What are red flags when buying a flipped house? I've seen some houses that clearly were quickly and cheaply flipped. Or some that look good, but I'm still concerned that it's poorly done and cosmetics are just covering problems.
Asked by Reagan | Nashville, TN| 05-15-2023| 1,562 views|Buying|Updated 2 years ago
Flipped houses can be excellent purchases or expensive headaches depending on the quality of the work and what was done before the cosmetic layer went on. Knowing what to look for protects you.
In Hernando County and throughout Florida, the red flags that matter most in a flipped house are: fresh paint and new flooring on top of structural issues that were not addressed, new fixtures installed without pulling permits (particularly electrical and plumbing), a timeline that suggests the flip was rushed (permits pulled and closed within 60 to 90 days with a full gut renovation is a warning sign), and an uncooperative seller who cannot or will not provide permit records.
Other warning signs include: patched drywall in unusual locations that may be covering water damage or mold remediation, caulk over caulk around tubs and showers suggesting ongoing moisture issues, a new roof installed without building department sign-off, and HVAC equipment that is new but improperly sized for the square footage. The most protective step is to hire a home inspector who specifically has experience with post-flip inspections and who will look behind the cosmetic work rather than just reporting what is visible. Pull the permit history from the county building department before you make an offer. Any major system work without a permit is a red flag that deserves a direct answer.
Kevin Neely & Kaitlynd Robbins | K2 Sells, Keller Williams Elite Partners
Look past the fresh paint and staging.
No Permits: If they moved walls or added a bathroom but there are no permits on file with the city, run.
Inconsistent Finishes: New cabinets but old, ungrounded electrical outlets? That means they spent money on what you see and ignored the safety systems you don't see.
"Lipstick on a Pig": uneven tile work, doors that don't close right, or gaps in the trim suggest the work was rushed by amateurs.
Flippers are looking at the bottom line profit and often spending extra money to replace roofs, electrical, plumbing or fixing structural issues are not top of mind. Look at these items primarily. Flipping a home often is focusing on making it look esthetically nice.
Often flipped houses will have the cheapest materials installed, flooring, appliances, cabinetry, lighting, etc. Poorly done carpentry work include but not limited, trim, walls. Often you will find a home freshly painted with a strong oil based primer which could potentially indication mold was in the property and further testing should be done. Uneven floors accompanied often by vertical cracks on wall and ceilings point to foundation issues. Freshly painted basements and/or carpeting should proceed with caution, there could be foundation/structural issues. Check for expansion foam in basement walls, sill plate. Check prior listing of the home to see what was done or not done.
I would always recommend an inspection, but as you are walking through a flipped property, take special note of the materials used, the quality of the workmanship, and details like moulding (does it match up or is it roughly pieced together?), mechanicals (do they turn on and off?), the roof (are shingles lifting or buckled?) and plumbing (does the water turn on and off? Leaking faucets?).