There is no shortage of aspiring house flippers, thanks to shows like Flip or Flop, Property Brothers, and many more. Did you know there’s a show on HBO called Murder House Flip, where they buy and remodel homes where infamous murders took place? Talk about a reality TV twofer!
There’s certainly nothing wrong with flipping houses or buying a flip house. When done well, bringing distressed or neglected properties back to life is a service to communities, and brings more inventory to the market.
The problem lies in the fact that buying and flipping houses is basically unregulated. Just like being a roofer in Texas, you can just decide you want to flip houses and do it. There’s no license or special abilities required. So you don’t really know if you have a Property Brother or somebody who watched a few videos as your flipper. Not only that, but you also have bad actors who are in it for a quick buck, will do the bare minimum for the best profit margin, and try to conceal anything that might drive away a buyer.
If you are considering buying a flip house, it behooves you to have a thorough home inspection ahead of that purchase. Here are some examples of why:
Passing The Major Repairs on to The Buyer
This is a pretty major issue that potentially caused previous foundation repair, and now the brand new flooring is cracked, not to mention the constant muddy yard, and high water bills. Given the year of the house, they might be looking at cast iron pipes, so it could be pipe replacement in addition to foundation repair. Something like this is harder for a house flipper to recoup, so they’d rather pass that cost along to the buyer. This doesn’t mean you shouldn’t buy the home necessarily, only something to take into account in the cost of buying a flip house.
Incorrectly Installed Systems
Neither the antenna removal or the drip loop installation were done correctly here, opening up the service mast, the wires, and the attic below to water damage, and costing the new owners needless repairs. Hopefully, they can get this repair negotiated into their contract ahead of the purchase, or at least, now they know and can get the repairs done before anything is damaged.
Using Incompetent Contractors
This isn’t technically a house flip, but I included it because hiring contractors to complete your home renovation is similar to buying a flip house. Guess what? You also don’t need a license to be a general contractor in Texas. Do you know who does require a license, periodic license renewal, and ongoing education to keep it? Realtors and home inspectors.
If you are having a major home renovation involving knocking down walls or adding on rooms, get recommendations from licensed pros who work with contractors all the time. Make sure you use a contractor who hires licensed professionals to complete the work, and files all the proper plans and permits. And, have a home inspector check the work, just like you would on a new home.
