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Buying a Portland home? Search all homes for sale
Today, it's common to see properties on the market that have been flipped. Most of these properties are in good condition, but there are six things you can do to protect yourself when purchasing a flipped property.
- Ensure the flipper used permits. Check with your local jurisdiction to investigate which permits were pulled on the property. Sometimes, permits are still open on the property or permits weren't pulled for repairs that required permits. Knowing what permits were pulled indicates whether or not repairs were up to code.
- Be aware of updates. The seller and the listing agent should provide a list of updates that have been made to a property. Double check with your Realtor to check previous listings on the MLS. If the property was previously listed, you can confirm which updates were made.
- Calculate the seller's finances. Determine what the seller paid for the home and any remodeling costs. Sometimes, low margins indicate repairs were not made up to code. For example, we had a property that was bought for $420,000 and listed at $459,000. Do the math on the renovations. If the seller isn't making much money on the property, that's a red flag.
- Pay attention to workmanship. Work quality is extremely important. Don't buy a flipped property only to have things fall apart on you later.
- Conduct a thorough home inspection. Ensure the inspector understands that the property has been flipped. The inspector may want to pay closer attention to particular things.
- Google the seller's name. From simple searches, we sometimes find complaints, lawsuits, and other red flags that cause us to move on.
If you have any questions, give us a call or send us an email. We look forward to hearing from you.
