We’ve had a lot of clients to ask us about flipped properties. Well, there are a couple of key things to know. Essentially a flip property is a property that was once a fixer. If you go for a fixer-upper, you're committing to improving the home, which takes time and money. If you buy a foreclosed property in an auction or from a bank, you could get a better price for the home to complete repairs. Remember that if the previous owners couldn't pay the mortgage, they probably couldn't pay for the upkeep either -- so you might have to deal with deferred maintenance or other neglected issues.
If the home was in distress, it needed some work done. Generally, a construction team or real estate crew came in and basically gave it a facelift or remodeled the property and put it back on the market for sale. Basically, they take a property that is not as desirable, they flip it by remodeling it, updating things and put it back on the market for general buyers to be able to purchase. Now, the main things to look at when you're looking at these types of homes are the "details.” When you're looking at the homes, a couple of things I like looking at our crown molding if the home has it or baseboards. Usually, those are going to be items that can tend to be thrown together a little bit quicker, they may not have the quality workmanship there, and those can be indicators of what's going on throughout the property.
There are a lot of different levels of a flip property as well. There's going to be a home that may have just had a light facelift, maybe had some paint or maybe doing the flooring and some landscaping while other homes are completely remodeled top to bottom. They'll remodel the kitchen, all the bathrooms, the bedrooms, they may even do an addition or expand rooms. The main point that they're trying to do as a contractor is trying to make a product that's beautiful at the end. They want to make sure it has nice floors that are attractive, make sure that the kitchen looks very homely, and overall, bring the house into the 21st century with the upgrades and updates that it has. Now, remember you when you're looking at these homes, if you are seeing concerning things in the details, there may be bigger issues. If you're seeing the floors that are not seemed together all the way that may have little gaps in them, little things like this will really be a huge indicator of what's going on with the home
If you are looking at a flip property or even considering doing a flip yourself, make sure that you're looking at the details, and make sure give me a call, because I can talk to you a little bit more about what to be aware of throughout the process!