With fresh paint and brand-new appliances, what’s not to love?
The latest rage is buying, renovating and selling of houses. Television and the internet provide a fun filled exciting look at renovating a house. But making quick money flipping houses is not something that comes easily for a layman. We have encountered houses that are cosmetically pleasing but not structural sound. What can we do to protect our clients?
Your buyer may be a perspective flipper or a purchaser of a renovated house. Either way, they must be protected. One of the biggest mistakes a buyer can make when purchasing a recently flipped home is skipping the inspection process. It can be tempting when the buyer sees that everything is new or the investor says why bother when he plans on tearing the kitchens and bathrooms out. A layman cannot predict and find issues like a qualified home inspector
HIRE THE RIGHT INSPECTOR: Your inspector should be licensed, have many years of experience and be familiar with the renovation process.
Home inspections are not warranties and we cannot see behind finished areas. A thorough home inspection is your best bet in avoiding a financial flop.
Here’s a checklist that will help your buyers in this process:
- Who was the flipper? Has he/she flipped previous houses? What is his reputation and credentials?
- Check that all permits were filed for all systems installed and for all major repairs, roofs, etc.
- Is the basement finished? If so, check for permits.
- Who were the contractors that worked on this flip? What is their reputation and credentials including proper licensing.
- Gather all receipts and warranties for all major work completed.
- Hire the correct inspector. Accompany him on the inspection and thoroughly review the report provider