With inventory low and the market financially rewarding homes that have been remodeled we have seen many "flips" recently. As you can probably tell by watching television shows like "Flip or Flop" or "Flipping Vegas," flipping has become more than a one-time proposition. Companies have been formed whose sole purpose is to locate properties to flip. I get monthly (and sometimes weekly) emails from flippers looking for off-market listings that need work which, after remodeled, will give them a good return on their investment.
Is buying a flip always a good deal? The answer is, "It depends." The goal of the flipper is to buy low, cosmetically remodel and sell high enough to make a good profit. Polished hardwood floors, granite counter tops, spa bathrooms and the like are very appealing to buyers who either don't want to do the work themselves or don't have the vision to transform a dowdy property.
Buying a flip can provide the updated look and open concept floor plan but it is important to peek beyond the cosmetic to make sure the flipper didn't cover up a larger flaw. Proper inspections are the key to uncovering any problems that may be lurking below that gorgeous stainless steal shine. Foundation issues? Electric or plumbing problems? These may or may not have been addressed by the flipper but may not be evident to a buyer without the help of a professional inspector. Do your due diligence. Spend the money to inspect. Your realtor should be able to guide you to appropriate professionals that can let you know what, if anything, is hiding in the walls.
Shiny and new is attractive and a flip can be a good fit but be sure you go beyond the first impression and look deeper before you buy. Good advice for any home buyer, flip or not.
