Important Considerations When Purchasing a Flipped Home

Many modern entrepreneurs make their livings flipping houses. This means that they buy homes that are in need of a little work, fix them up, and place them back on the market at a profit. In theory, this practice benefits everyone. The neighborhood in general benefits from the improvement in the appearance and desirability of the property, the buyer benefits because the home is in good repair, and the flipper benefits because he or she has made a profit by performing honest work. However, flipped properties are not always as desirable as they seem, and those interested in home buying Kingston should exercise a reasonable amount of caution when considering the purchase of one.

One of the first things that a potential buyer should do concerning a flipped property is to research the prior condition of the house and yard. Many flipped houses have been vacant for a long period of time because they have gone into foreclosure and are therefore owned by banks. Houses that sit empty often have serious problems, such as rodent infestations, mold, and burst pipes. They may also have been subject to vandalism or have even been lived in by transients. Homes that have sat empty for a period of time may also have foundation issues. Flippers who want to move the property as quickly and cheaply as possible may take shortcuts such as simply painting over mold to conceal it rather than completely removing it.

Buyers should also research the flippers to ascertain whether or not they have a good reputation. If they have worked locally for any length of time, area real estate agents will be able to offer some insight into the quality of work that they produce. It may even be possible to speak with people who have bought houses from the same flippers.

Another serious consideration is that certain lenders may balk at loaning money for the purchase of flipped homes. Other lenders may have stricter requirements for flipped homes, such as having two independent home inspections rather than one. Anyone who is considering buying a flipped home should discuss the situation thoroughly with both their real estate agent and lending officer at their financial institution before coming to a definitive decision. It is possible to get good deals on flipped houses, but buyers should still approach these transactions carefully.