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What are red flags when buying a flipped house?

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| 1,709 views|Buying|Updated 3 years ago

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Zoltan PeresztegiReal Estate Agent2 months ago

Pull the recorded deed and the permit history side by side before you write the offer, and look at the gap between what was done and what was permitted. That single comparison tells you more than any walkthrough. The thread has covered permits, so here is how to use them properly. Start with the deed at the county register of deeds. It shows when the flipper bought the house and, in most cases, roughly what they paid. Say they bought it 70 days ago for $180,000 and they are asking $340,000. Now you know the budget. Subtract carrying costs, closing costs on both ends, and their profit target, and ask yourself whether the rest of that number could possibly have bought a new kitchen, two baths, HVAC, flooring throughout, and paint. Usually it could not, and now you know where to look. Then pull the permits. What you want is not "were there permits," it is "does the permit list match the work I am looking at." A permit for a kitchen remodel but nothing electrical, next to a kitchen with six new recessed lights and a new circuit for the range, tells you the electrical was done without inspection. That is the pattern. The specific inspection add-ons I would insist on, beyond a standard general inspection: Sewer scope. Nashville has a lot of older clay and cast iron laterals, and the lateral is the homeowner's problem from the house to the main. A flipper does not dig up a yard for a pipe nobody can see. This is the single highest expected-value $200 you will spend. A separate electrical evaluation. You are specifically looking for a Federal Pacific Stab-Lok or a Zinsco panel. Both are known fire hazards, both are still in service in a lot of mid-century housing, and neither gets replaced in a cosmetic flip because it is not visible from the kitchen. Insurers ask about them too, so this one can affect your ability to get a policy. GFCI protection at kitchen, bathroom and exterior receptacles. This is cheap to do correctly and takes ten seconds to test. A flipper who skipped a $20 device also skipped other things, so treat it as a proxy for care rather than as a problem in itself. Roof and attic, from inside. Look at the underside of the decking for staining, and look at whether the insulation was replaced or just fluffed up over the old stuff. Then the visual tells that hold up well: - Fresh paint on foundation walls, basement walls, or crawlspace framing, exactly where water staining would otherwise be visible. - Brand new flooring butted against original trim with a caulk gap, meaning the floor went in over something rather than instead of it. - Doors that do not latch and windows that stick, in a house that was otherwise "fully renovated." That is movement, and paint does not fix movement. - Anything in the crawlspace or attic that is visibly new sitting next to something visibly untouched. Two asks that cost you nothing. Request the contractor list and any lien waivers, and request a full list of work performed in writing as part of the seller's disclosure. A legitimate flipper has this and hands it over. Someone who dodges the question has told you something. And one on timing: if they bought it recently and you are financing with FHA, ask your lender about the FHA 90-day resale restriction before you get attached. That can end a deal on the calendar alone. I am a real estate professional, not an inspector or an electrician. Hire the specialists. The $600 you spend on a sewer scope and an electrical evaluation is the cheapest part of this purchase. I am Zoltan Peresztegi, and I work in Los Angeles and the South Bay, so Nashville is not my market, but if you want an introduction to a strong Nashville buyer's agent, I am glad to make one. Zoltan

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Mary WassefReal Estate Agent4 months ago

A flip isn't automatically a bad thing. In fact, the first home I purchased was a flip in Houston's Historic Norhill neighborhood. It was done exceptionally well by someone who genuinely cared about the community and wanted to create a home he could be proud of. The quality of the workmanship showed, and years later I still think it was a great renovation. Unfortunately, that level of care is not always the norm. In my 23+ years as a Realtor, I've found that the biggest question isn't whether a home is a flip—it's whether the person doing the renovation was focused on quality or simply on making a quick profit. Some potential red flags include: Fresh cosmetic finishes hiding older major systems. New paint covering signs of previous water damage. Cheap materials or inconsistent workmanship. Doors and cabinets that don't align properly. Flooring installed unevenly. Missing permits for major work. New finishes but old roof, plumbing, electrical, or HVAC systems. A very short ownership period combined with a dramatic price increase. I also encourage buyers to ask what was actually renovated. A beautifully remodeled kitchen is nice, but I'd also want to know: Was the electrical updated? Was the plumbing replaced? Were foundation issues addressed? Was the roof repaired or replaced? Were permits obtained where required? This is where inspections become especially important. A thorough inspector can often distinguish between a quality renovation and one that focused primarily on cosmetics. Some of the best homes I've seen were flips completed by builders, contractors, or investors who cared deeply about their reputation. Some of the worst were beautiful on the surface but had significant problems hidden behind fresh paint and new countertops. The goal isn't to avoid flipped homes. The goal is to determine whether you're looking at a thoughtful renovation or simply an attractive cover-up. Mary Wassef Founder | Broker Circa Real Estate Top Producing Houston Realtor | Luxury & Historic Home Specialist Five Star Professional Award Recipient (15+ Years) | Luxury Home Marketing Guild Member | PRNEWS Award Winner Serving Houston Heights, Woodland Heights, Sunset Heights, Norhill, Garden Oaks, Oak Forest & Spring Branch

Keith Jean PierreReal Estate Agent5 months ago

Key red flags when buying a flipped house include rushed, poor-quality renovations, lack of permits for structural or system changes, and superficial cosmetic fixes (paint, flooring) used to conceal underlying structural, plumbing, or electrical issues. Prioritize professional inspections and verify all renovation paperwork, as quick turnarounds often signal safety-neglecting "speed flips." Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Kevin NeelyReal Estate Agent6 months 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

Amanda CourtneyReal Estate Agent9 months ago

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.

Chris YochumReal Estate Agent3 years ago

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.

Lynne PruellReal Estate Agent3 years ago
Semi-Pro47 Answers

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.

Melissa AbramovichLoan Officer3 years ago
Novice1 Answer

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?).

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