I recently saw that flipped properties accounted for 8.2% of U.S. homes sold in the second quarter of 2022 – that’s the third-highest level since 2000! With that in mind, I thought I’d reach out today with a bit of advice regarding flipped homes.
Over the past few years, I’ve noticed that more and more people have been inspired by the “Fixer Upper” mindset, but not everyone puts in the work to make sure these cosmetic upgrades are high quality.
If you’re currently considering a flipped house for your new home, here are a few things to be on the lookout for:
- “Lipstick” flips. Look at details like paint, cabinets, tiles, and flooring – if they’re looking more DIY than pro, it may be a sign that the flippers are inexperienced and just trying to make a quick buck.
- Inflated prices. People flip homes to make money and therefore price the house to make a profit, but it’s up to you to decide if the flip is worth the price tag. Search online to find out what the home was priced at pre-flip to know how much you’re really paying to get that remodeled kitchen.
- Cutting corners. Time is money, especially when it comes to flipping houses. Unfortunately, this means that some flippers will cut corners on both quality and safety. Contact your local building department to ensure the flippers pulled proper permits and that the final product passed inspection.
- Major issues. Especially when it comes to older flipped homes, sometimes those pretty renovations can be covering up big problems. As you should with every home you’re seriously interested in, make sure you have an inspection done by a professional before putting in an offer.
While there is a lot to consider when you’re interested in a flipped house, I also don’t want to discourage you from them. They can be a great way to get a like-new home for a much more affordable price!