At this point, we all have a bit of an HGTV obsession, right? There’s nothing like seeing people turn old, run-down homes into stunning, updated homes that make us all whip out our wallets. In the span of what seems like 30 minutes, the houses go from drab to fab, which makes home flipping seem like a piece of cake.
These flipped homes often seem to be the house of your dreams, but are they? Let’s examine the pros and cons of buying a flipped home.
Advantages of a Flipped Home
The most obvious appeal of a flipped home is that it’s newly renovated, which means it’s most likely to have a modern, up-to-date feel with the latest in home trends, styles and appliances. This means it’s most likely move-in-ready, so you don’t have to do your DIYing to update the home.
The homes are usually competitively priced because the fixer-uppers or real estate investors are flipping the house to make money, so they want to sell it quickly, so it’s worth their investment.
Disadvantages of a Flipped Home
Home flippers are doing it to make a profit which can sometimes mean homes are flipped quickly, leaving the houses in poor condition. While they may be shiny and bright with the latest styles, the shine may be hiding cut corners.
One of the risks of buying a flipped home is that the flipper may not have filed the correct permits for the upgrades they put into the house. Or the new deck they installed off the back of the house may not be up to code. If they didn’t, you would be responsible for bringing the home up to code on your dime, potentially costing you thousands of dollars.
Like any home you may be buying, you’ll want to do your due diligence before you take the plunge. Make sure to verify the contractor, review permits, work with a third-party home inspector and be skeptical. When buying a flipped home, it’s all about being informed. If you’re researching before purchasing a flipped house, you can take advantage of a flipped home’s benefits while avoiding a lot of the risk.
No matter what type of home you’re buying, make sure you have an Ally to help you through the mortgage process. We’ll be there along the way to make the process as easy as possible. Give us a call at 877-448-2745 to get started today.