PH Real Estate - Pros and Cons of Buying a Flipped Home

Flipped homes or remodeled houses can be a good bargain, if you know how to choose the best one. With the increased prices of homes, it gets harder and harder to purchase a house of your own. If you can’t afford a brand new home, relax and take a deep breath. There are other alternatives that you can choose from. A good alternative for buyers who have insufficient funds is to find a flipped home. To help you with this endeavor, here are the pros and cons of flipped homes.

Pros

• Cheaper

Understandably, most flipped houses are more affordable than new ones. The reason boils down to the fact that old houses are subject to wear and tear. The older they get, the cheaper they become. Sounds familiar, right?

But obviously, there will always be an exception. These are the historical houses. The older they get, the more valuable they become.

• New environment

You’re in a new environment and this can mean a new beginning for you. You have to adapt to your new surroundings and choose to be happy.

If you have a family, your children may also welcome the new environment. This is applicable when they have had bad experiences in your old home. At any rate, you can always start anew and look forward to a bright future.

• Location of your choice

You can also select a location that you prefer. There are countless of remodeled houses that you can choose from. All houses grow old wherever they are. So, expect the mushrooming of flipped houses in any location of your choice. Yet, the general rule that houses found in strategic locations are more expensive is also true for flipped house.

Albeit they are old and flipped, if they are located near business establishments, schools, and hospitals, they can be expensive as new houses too. You have to take into account all the key aspects of the flipped house before finally choosing your perfect home.

• Design of your choice

You can ask the flipper to design your house according to your preferences. This can be done if the house is not renovated yet. In this case, the renovation should be done under your supervision.

If the renovation is already done, then you may have to do your own separate flipping to design your home. You have to cooperate with an architect/engineer or an interior designer to be able to do this.

The downside of doing the flipping after you have purchased and moved in to the house is that the environment will be chaotic. You may want to do the renovations under your supervision before you move in to provide your family more breathing space.

• You can flip the property yourself

You can buy the renovated house, improve it further, and sell it at a higher price. This can only apply when you don’t have plans to live in the house. But, if this was your original plan, you should strive to render quality work to build your name and reputation as a flipper.

This is a profitable business, as well, if done competently. Keep in touch with professional flippers and learn the business from them.

Cons
As for the cons, you can consider these:

• The house may be flipped improperly

The home flipper may have remodeled the house haphazardly, performing cosmetic changes only. Some damaged portions of the house may have been painted to hide the defect. In this connection, it’s crucial that you research the reputation of the flipper.  He must have excellent track record in house renovations before you buy his ‘product’.

If you’re not sure about the reputation of the flipper, you have to inspect the house, together with a reliable inspector, before deciding to buy it. Scrutinize carefully the walls, roof, the water pipes, the electrical wirings, the rooms, the baths and every suspicious-looking area of the house.

• The house can be too old to renovate

The house may have undergone multiple renovations and thus, the repairs are taking their toll on the house. When a house is flipped so many times, the tendency is for the interior and exterior to become incongruent.

The designs are no longer in harmony with one another. It’s like an old cloth-bag being sewn several times. The basic fabric won’t hold all the parts of the bag anymore because it has been worn out. You can prevent this from happening to you by asking about the history of the house.

You can ask the agent these questions:

• How old is the house?
• How many times was it renovated?
• What were the renovations or remodeling tasks that were performed?
• A house that is 5 years old and below can still be a good option for you, but houses older than 10 years can be problematic; much more with 20 year old and above houses.

If the house has been renovated several times, inquire who the flippers were. There is no issue about the number of renovations, provided that the renovation was a quality job. But if the flippers have poor reviews and are not listed, most probably, their flipped houses would be in question.

• Conclusion

If you want to own a home but you don’t have sufficient funds, buying a flipped house can be the solution for you. But, choosing the best renovated house can be a problem, at times, if the buyer has no clear guidelines on what to look for. If you’re one of these buyers, you can refer to the pros and cons listed here, and use the tips provided.

The major thing to remember is to inspect the house thoroughly to search for damages that have to be repaired, before moving in. This will ensure you a safe and secure house to live in.If you have detected damages, inform the flipper immediately, so he can repair it before it gets worse.

In instances when the flipper doesn’t repair the damages because you have already purchased the house, you can report him to the authorities or agencies concerned.

Tags:    Tips on Buying a Flipped Home