WAYS TO DETERMINE IF THE HOME YOU ARE BUYING IS A FLIP
The housing market is at the top of its game currently and sellers are putting their best foot forward. Even though there is a tight market at times, sellers are working hard to renovate and redesign key areas of their home. They need to make the home more appealing to buyers. It goes without saying that attractive infrastructure has a positive impact on the sale price of the property. House designs are changing and remodeling is a much more feasible option than buying a new home. These days, sellers are remodeling their home before putting it up for sale.
According to the U.S Home Flipping report released by the Property information company, ATTOM Data Solutions, during the Year-End 2017, there have been 207,088 condos and houses which have been flipped in the year 2017 and the number is the highest recorded number in the last three years.
Buyers prefer to move into a house that is in ready to stay condition so they do not need to put in much effort on renovations.
Take a quick look at the ways to determine whether the house you are purchasing is a flip or not:
- Track the property history –
If available as the seller of the listing agent for a “Statement of Condition”. This is by far the best way to determine if the property you are considering has been flipped or not.
You can also find the transaction records in your county assessor’s office. If you want to take a look at past sale records, it is best to check out sites like Trulia or Zillow. If the house has been sold to the current seller within the last year, then there is a high chance that the property is being flipped. The general timeline of a house flip is “closing to closing nine months.” Six to twelve months is the outer time frame to get the house ready for sale on the market.
Inspectional Service Departments of local governments will also have copies of building permits for the property.
- Inspect the house –
When you are physically inside a home it is easier to identify which aspects of the house were flipped on a tight budget. First spot to inspect is the front door. To ensure soundproofing, insulation, and security, exterior doors should be constructed sturdily. If the front door was flipped on the cheaper side, it is a good indicator that the rest of the house was also done on a strict budget.
- Check the windows –
After taking a walk around the whole house, come back to the windows and check if they open and close smoothly. If a flip has been conducted then it is probable the windows will be new. If you can, find out the manufacturer of the window and which kind were put in. It is a good idea to do your own research to find out if the windows were a cheap option or if they give the house energy efficiency.
- Check the kitchen and the bathroom –
Take a thorough look at the bathrooms and the kitchen because when a remodeling happens, these rooms are the first ones to be renovated. You can find out a lot about a flip through the details of a kitchen and a bathroom because the most improvements are done in these rooms.
From the perspective of a seller, it is obvious that their ulterior motive will be to crack the most profitable deal. On the other hand, the buyers are also seeking to invest in a property which will not only be reasonable but also have all the necessary facilities to suit their demands. Both the parties have the intention to reap maximum benefits from the deal they crack. Therefore, it is better to keep a tab of the market trends before signing the papers.