home buying ... a flip?

[minniebee]

We've been looking for a house in our new city for several months now, and have been frustrated with the lack of inventory of homes that fit our criteria.

A house came on the market yesterday that we're interested in. The house looks nice and has many of the features we're looking for. The size is right. We like the lot/yard. The location is great. The price is great - it's considerably below our budget. There are a few updates/upgrades we would like to make, but we could easily put some money into the house given the low purchase price. The changes we would want to make are all cosmetic, and are the cheaper things to change. The expensive things (kitchen/baths) are already done to our liking. It's also on the low end price-wise for the neighborhood.

The thing we're not sure about it that it's clearly a flip. It was last sold in Sept 2011 for about 1/3 of the price that homes in that neighborhood have been selling for.

I don't know what to think about that. If it sold for such a low price, the house must have had major issues. I'm not sure a home inspection would be enough to make us comfortable that any problems have been remedied and not just covered up with new drywall.

I asked our realtor if he would advise us to buy a flip, or if that's something to steer clear of.

Would you buy a flip? Why or why not?

Do you know anyone who has bought a flip ... any stories either good or bad?

[SusanBAnthony]

No. Not unless I knew the person doing the work, and trusted them. There is just too much major major damage that can be hidden.

We looked at a flip that had a water leak disclosed in the basement this past summer (the driest summer in forEVER) that they had painted waterproofing paint and then finished the basement. That was it. and this whole town has wet basements, so yah right was that going to be sufficient as soon as it actually rained! After I heard that I had zero interest, even though the house was beautiful and it seemed really well done. That, and they used plastic doors (someone on here corrected me, they have some official name other than plastic, but wtf, they are plastic!). I just don't trust someone renovating for profit and with no vested interest in the long term quality of the house.

[pitterwoo]

I can't imagine considering it because we would rather DIY our own project house. However, I might consider a flip depending on what you can find out about the previous condition and who did the flipping. I saw in your other post that it's a 2001. That a house that new had a ton of problems scares me, but I don't have any personal experience living in a home about 10 years old.

[MrsAxilla]

Just because it sold cheap doesn't necessarily mean it was in bad shape. Maybe it was in foreclosure or sold at auction or something. We bought a flip and we're really happy with it, even though we're pretty sure the bathrooms have major issues.

We were very apprehensive for all the reasons you mentioned, but this house was just the one, KWIM? We got a warranty, of course, and also got copies of all the receipts and contracts and such. We haven't had anyone out to check the bathrooms yet, but whatever is wrong will be covered under the warranty.

[Deleted]

I would never buy a flip personally. Perhaps you could talk to some neighbors near the house to get their opinion on the house history, etc...That is what I would do or try to dig up the original listing with photos -- your realtor should be able to find them...Or if you still think you really want it, I would have 3 different inspectors on the house --- I know you pay more but it might save you thousands in the long run.

[emisi]

Dec 17, 2012 3:02:04 GMT -5 @switzerland said:

I would never buy a flip personally. Perhaps you could talk to some neighbors near the house to get their opinion on the house history, etc...That is what I would do or try to dig up the original listing with photos -- your realtor should be able to find them...Or if you still think you really want it, I would have 3 different inspectors on the house --- I know you pay more but it might save you thousands in the long run.

This, definitely. We bought a flip, and while I love the house, they definitely cut a lot of corners and didn't really know what they were doing. For example: the siding was stapled on instead of nailed, and only stapled to the foam backing! One good windstorm and it would be gone. THey also reversed the hot and cold in the kitchen. If you go for it, get a REALLY GOOD inspector. Flippers tend to not care about the quality of their work, they just go for the cheapest bid and try to make things look pretty.

[Deleted]

We bought a flip. We did a little bit of background research on the woman and her business who did the remodeling on the house. She was legit and so was her work. I'd say if the house has what you need and a layout you want, go for it. Just make sure you have a great inspector who can tell if you if the remodeled work was done correctly and to code (you can ask your local government if the previous owners pulled permits) or if not.

[hausfrau]

Dec 17, 2012 8:32:57 GMT -5 emisi said:

... If you go for it, get a REALLY GOOD inspector. Flippers tend to not care about the quality of their work, they just go for the cheapest bid and try to make things look pretty.

From the experiences of my friends that own flipped homes and from my mom's family who were all builders at some point, you would definitely need to have a really thorough inspection and really consider the quality of the work and the materials that went into the house.

I wouldn't disqualify a flipped house, but if there were other options for us, even if it meant us doing the work in a home, I would probably choose that route first.

[sailorgray]

Our house is a flip. Sure, there are some issues that we've had to fix, but I wouldn't blame that on the flip and they were no big deal. I think that you are going to take a risk when buying a home whether it's old, brand new, a flip, a home the seller lived in for 20+ years, etc. Just have a good inspector.

[vanillahip]

Nope. I would never buy a flip, but that's mainly because I know what it takes to flip a house and I'd have a good idea of the profit margin and that would just piss me off lol. I'd MUCH rather buy a cheap POS and fix it myself!

[wawa]

it's not like buying a house where the previous owners lived for 20 years is some promise of top notch work...people can seriously half-ass anything, flip or not. Get a really good inspection. Ask lots of questions.

2011 should be recent enough that you can call your county/city offices and ask about permits that were pulled and find out who actually did the work - so in some ways that's actually a plus.

[minniebee]

Update ...

We found out through our realtor that the house had major mold issues. Bad. They basically had to gut the whole house.

The house has been tested, and shows no signs of mold or moisture problems at this time. But, our realtor still said he would not advise pursuing the house. It's now public record that there was a major mold issue in that house, and that means the house will always carry a stigma that could hurt resale value when we want to sell it.

[kballerina]

Bummer!! So sorry.