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.
With these six strategies, you can make a smart purchase decision!
If you have any questions, give us a call or send us an email. We look forward to hearing from you.
Enter our drawing for two tickets to the Portland Trail Blazers game! We’ll let you choose between the January 4th game with the Memphis Grizzlies or the January 8th game with the Los Angeles Clippers.
To enter, we ask you to forward this email to your entire database, such as a group of coworkers or family members you email frequently. Make sure to copy Steve@PortlandLifestyle.com on that forward email.
Now, let’s talk market statistics in the area. This helps buyers and sellers make smart real estate decisions! We use the S&P/Case-Shiller Home Price Index to compare how the market changes every three months.
Similar areas have experienced a 5.1% increase in home appreciation year over year. However, Portland increased nearly twice of that with a whopping 9.8%! It’s the city with the third-highest increase throughout the entire country.
Although our market was negatively impacted from the housing recession, our market is beginning to bounce back to normal -- and ever better than before.
If you have any questions about this information or real estate in general, give us a call or email today!
Since Halloween has recently passed, let's discuss a question buyers occasionally ask: "Has someone died in the home I want to purchase?"
There are some superstitious people out there who worry about that kind of event in a home. There are other adventurous people who seek out these properties.
Disclosure law in Oregon does not require the seller to disclose a death in the home. Many states in our country have similar laws.
However, if you want to find out, you can visit a website called DiedInHouse.com. This site searches public and private records to provide you a report on any deaths, fires, or drug activity on a property. Homes that are stigmatized can be less popular and sit on the market for a while. Some homes are even torn down, depending on what happened.
If you have any questions about today's video, give me a call or send me an email. I look forward to hearing from you!
