ROSIE ON THE HOUSE

Seven precautions you should take before buying a flipped house

Jul 6, 2017, 2:53 PM
(Public Domain Photo)...
(Public Domain Photo)
(Public Domain Photo)

A flipped house is one that is bought by an investor who does a series of quick remodels and then resells the house at a higher price, usually within a year or shorter.

The flipper’s usual objective is to spend as little as possible on the remodels and to complete the process as quickly as possible.

The amount of flipping seems to increase when the housing market heats up. That’s happening around the country – including Arizona.

An online real estate database, Realtytrac, reported about 8 percent of all homes sold in Phoenix were flipped in 2016. In other areas, such as California and Florida, the rate was 10 percent.

Should you buy a home from a flipper? Perhaps you may want to if it’s in a neighborhood where you particularly want to live or it has the view that you want or it has a great price.

But before doing so, here are some steps to go through:

1. Find out as much as you can about the seller-flipper and what his or her reputation has been in the real estate industry. There are builders and investors out there who do a good job and will back up their work to prove that.

2. Get an itemized list of what repairs and remodels were done on the house you want to buy.

3. Hire home and roofing inspectors with outstanding reputations to give the house a thorough going over and report back on any problems.

4. All plumbing or electrical work that was done on the property must be up to code and done with a permit. Any addition to the home needs a permit. You can go to the city or county planning department yourself to look at the permits just to be sure.

5. Insist that the seller fix or repair anything that doesn’t suit you in advance. Sometimes the seller will offer to include money in the contract for those repairs if you will do them later. In that case, you need to get estimates from contractors about what the repairs will cost.

6. Ask for manuals and warranty information for any new equipment that was installed, such kitchen appliances and heating and air conditioning systems.

7. Be sure that the title company checks on the property tax status of the house. Sometimes flippers “forget” to pay their taxes until they sell a house.

Above all, you need to be realistic about a house that seems overpriced and loaded with problems to fix.

For more homeowner advice, DIY tips and videos, and information about all the projects around your house, home, castle or cabin, visit Arizona’s largest collection of homeowner DIY advice and information at RosieontheHouse.com.

And if you are in need of a quality contractor you know you can trust, visit our list of Arizona’s very best contractors or service providers for your home improvement projects at RosieontheHouse.com – Arizona’s most-trusted referral network.

Tune in to KTAR every Saturday morning from 7-11 a.m. for the Rosie on the House broadcast!

Rosie On The House

(Microsoft 360 Photo)...
Rosie Romero, Host and Owner of RosieontheHouse.com

Complete these important but quick and easy kitchen maintenance tasks

Regular cleaning of your kitchen surfaces and appliances will make maintenance projects easier and required less often.
5 days ago
(Shutterstock Photo)...
Rosie Romero, Host and Owner of RosieontheHouse.com

See Spot run; see, smell and clean up Spot’s spots

Fifty-eight percent of Arizona households have at least one pet. So, how do you remove not only the stains they leave behind but the odors?
12 days ago
(Shutterstock photo)...
Rosie Romero, Host and Owner of RosieontheHouse.com

Selecting the right window treatments for your home

With so many options available, how do you select window treatments that best fit your needs?
19 days ago
(Shutterstock Photo)...
Rosie Romero, Host and Owner of RosieontheHouse.com

Barbecue grill maintenance is a year-round item for to-do list

If you haven't performed some TLC on your backyard grill in quite some time, we recommend performing the following maintenance before firing it up.
26 days ago
(Shutterstock Photo)...
Rosie Romero, Host and Owner of RosieontheHouse.com

Find out what efflorescence is and how to remove, prevent it

There are steps you can take to rid concrete, bricks and stucco surfaces of what could be deemed an eyesore - efflorescence.
1 month ago
...
Sponsored Content by Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
Seven precautions you should take before buying a flipped house