Home flipping is, once again, a growing trend. After hitting a high point in the early 2000s and falling alongside the housing market, the practice of buying a home, fixing it up and reselling it within the year is gaining momentum in cities across the U.S.
But while some bold investors may make home purchases and subsequently spend their days renovating the house, house flipping isn't for everyone. It's a lot of hard work with no guaranteed return on investment.
However, given the popularity of this practice, homebuyers looking for the perfect abode may come across a flipped house in their search. At first, it might look perfect. All the work has already been done, it has a trendy design and probably has a new appliance or two.
Don't assume your flipped find is the finest option, though. There are plenty of things that could go wrong when investing in a rushed flip or one that just wasn't executed properly.
Before finalizing the purchase and taking out a residential mortgage, double-check these aspects of the property:
Did you know that you need to speak with city officials before making structural changes to your home? More importantly, did the crew who flipped the home know?
Ask the seller for records of finalized permits, Zillow suggested. If you don't receive them, check with the city. Any permits that were taken out should be public record. Check to be sure they were signed off on, too.
Depending on where you live, there could be rules regarding a wide range of home features, including addition sizes, how additions are used and the style of lighting inside the home, according to CNBC.
The water heater is an important appliance that every home must have. It's also an expensive one. Ask to check out the water heater when you tour the home. Keep your eyes open for a few things:
If all signs point to a need for a new water heater, include this request in your contract, U.S. News & World Report suggested.
Don't overlook the small things when touring a home. Make sure the outlets have power running to them, the light switches work and the faucets all dispense water.
Further, ensure that outlet and light-switch plates are flush with the wall and parallel with the floor. Check both hot and cold water on all faucets and shower heads. Finally, inspect the piping when the water is running. If it's leaking already, there will certainly be work to do.
Buying a flipped home can be great - as long as the contracting work wasn't a flop. Beyond your own careful detective work, be sure to hire a trusted inspector to identify any problems you might not know about. If all looks right, feel free to claim the home as your own.
Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2015 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.