{"id":20353,"date":"2023-01-03T12:50:36","date_gmt":"2023-01-03T17:50:36","guid":{"rendered":"https:\/\/www.cubesmart.com\/blog\/?p=20353"},"modified":"2024-01-09T15:14:38","modified_gmt":"2024-01-09T20:14:38","slug":"buying-a-house-10-ways-to-spot-a-flopped-flip","status":"publish","type":"post","link":"https:\/\/www.cubesmart.com\/blog\/your-life\/buying-a-house-10-ways-to-spot-a-flopped-flip\/","title":{"rendered":"Buying a House? 10 Ways to Spot a Flopped Flip"},"content":{"rendered":"\n
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Everything looks great, but what’s under the hood?
Free Image via Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n

Buying a house is certainly not\nthe easiest thing any of us will ever do. With the amount of money, debt, and\nrisk involved, everyone wants to make the right choices \u2014 right out of the\ngate. New construction or vintage charm? One floor or two? Square footage or\nneighborhood? The choices seem endless, and it can be hard to know if you\u2019re\nmaking the correct one. <\/p>\n\n\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nIf you\u2019re thinking about buying\na flipped house, the stakes are even higher. Given flipped houses\naccounted for one in ten houses sold in the U.S. in the first three months of\n2022<\/a>, you just might come across one in your search that\nmeets all of your criteria. But before signing on the dotted line, do your\nresearch and learn all the tell-tale markers of a \u201cflopped flip.\u201d\n\n\n\n<\/p>\n\n\n\n

What is a flopped flip you might\nask? Any house that has been quickly and sloppily redone to sell at a premium. While\nnot all flipped houses are poorly\nre-engineered or shoddily renovated, the faster and easier it is for the\n\u201cflippers\u201d to get in and out of a property, the more money they make. When\ncorners are cut, quality and safety concerns are often close behind. Not to\nmention the lasting effect of strange (and cheap!) design and layout\nchoices.  <\/p>\n\n\n\n

Keep scrolling to first learn how to spot a flipped house \u2013 and a flopped flip!\nWe also cover all the flipped house dos and don\u2019ts\nto keep in mind throughout the purchasing process, and link to some other great\narticles on the topic. <\/p>\n\n\n\n

How to Spot a Flipped\nHouse<\/strong><\/h2>\n\n\n\n
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Flipped homes aren’t always done on the cheap, but here’s how to spot the bad ones.
Free Image via Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n

The first step in avoiding a bad flipped house is to learn how to spot a flipped house to begin with. Keep in mind that the sellers or sellers\u2019 agent are not necessarily going to disclose that information. You should be prepared to do some research on your own time and dime to understand the full picture of any house that makes your short list. <\/p>\n\n\n\n

10 Ways to Spot a Flopped\nFlip<\/strong><\/h3>\n\n\n\n
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  1. Look up public records. <\/strong>Public records (and even websites like Zillow or Trulia) will quickly tell you the date the house was last sold and the price it was sold at. If the price is significantly lower than what it\u2019s on the market for, and the house has only belonged to the current owners for a short time, chances are you\u2019re dealing with a flipped house. <\/li>\n\n\n\n
  2. Check out the landscaping.<\/strong> Are there lots of young plants? Is the lawn covered in mulch? Many flippers will spend their time and money covering up an issue with quick fixes rather than solving it. If the landscaping seems like it was prettied up on the cheap, take a second look at what lies beneath the surface. <\/li>\n\n\n\n
  3. Pay attention to the floors and carpet. <\/strong>A multitude of sins can be covered up with carpet. Walk back and forth several times on any carpeted areas to investigate if there are any irregularities in the floor beneath. Also take note if any of the floors are uneven. While relatively common in older homes, this may be a sign of structural or foundation damage which is truly the hallmark of a bad flipped house! <\/li>\n\n\n\n
  4. Try out all the systems. <\/strong>Make sure to test the HVAC and alarm systems, as well as turn faucets on, flush toilets, and flip light switches. Sellers can sometimes want buyers to be so charmed by the outward aesthetics and shiny new appliances that they won\u2019t think to ask about the inner workings of the house. While your inspector should catch any issues, they often can\u2019t or don\u2019t. Take our word for it: we didn\u2019t know that the downstairs bathroom plumbing in our flipped house was directing hot water into the toilet until after<\/em> the purchase. Flush away!<\/li>\n\n\n\n
  5. Keep an eye on the improvements. <\/strong>People who\u2019ve bought a bad flip often lament the fact they didn\u2019t notice that every improvement made was just about as inexpensive as possible with very little regard to long-term use. Are the new windows just bright and shiny \u2013 or will they actually help you save on heating? Is the new garbage disposal the cheapest one available? Does the handrail on the stairs feel like it\u2019s about to rip out of the drywall? Keeping a close eye on the details is key to learning how to spot a flipped house.<\/li>\n\n\n\n
  6. Check the permits.<\/strong> Permits will tell you not only what was done to the house and when it was done, they\u2019ll also be a red flag for any new work that was completed without a permit. Speaking from experience as someone who bought a bad flipped house, be wary of flippers who pull one permit and hope that distracted buyers won\u2019t notice that it doesn\u2019t match the amount of work completed. You may want to think about having a municipal inspection<\/a> done to decipher if the work was permitted and signed off on properly. <\/li>\n\n\n\n
  7. Pay special attention to the kitchen. <\/strong>The phrase \u201cputting lipstick on a pig\u201d might have been created specifically for flipped kitchens. All that new cabinetry may be hiding some serious layout issues \u2013 or worse. Be sure to open up the cabinets and drawers to discover any potential issues. Also try to imagine yourself using the kitchen. Is there enough counter space? Can you open the dishwasher and oven at the same time? Are there convenient, grounded electrical outlets? Kitchen renovations are incredibly costly, so make sure you like the results.<\/li>\n\n\n\n
  8. Research the contractor. <\/strong>Before you get too far down the road of buying a flipped house, ask for information about the contractor or contractors who completed the work. You want to make sure he or she is licensed and has a good reputation in your community. Work overseen by inexperienced, unlicensed or untrustworthy contractors can create enormous problems. <\/li>\n\n\n\n
  9. Hire a reputable third-party inspector. <\/strong>If you suspect you might be dealing with a bad flipped house, the skill and thoroughness of your third-party inspector is critical. Oftentimes realtors refer the work to home inspectors they know and trust but do your own research to find one who has experience examining and assessing flipped houses. <\/li>\n\n\n\n
  10. Ask a structural engineer.<\/strong> If you aren\u2019t quite sure how to spot a flipped house, a structural engineer might be a good person to ask. They can assess what shape the house is actually in \u2013 without being blinded by all the shiny surfaces and new paint. Real talk: our structural engineer discovered that the joists in our house had been cut by unskilled workmen, which could have caused enormous structural and safety issues. Luckily, the damage was discovered before the purchase, so the sellers were on the hook to fix it \u2013 not us. <\/li>\n<\/ol>\n\n\n\n

    Shopping for a Flipped House: Dos and Don’ts<\/strong><\/h2>\n\n\n\n
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    Some ways to avoid a bad flip? Here are the Dos and Don’ts.
    Free Image via     Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n

    Now that\nyou know the top ten ways to spot a flopped flip, let\u2019s quickly cover the dos\nand don\u2019ts to be mindful of when you\u2019re buying a flipped\nhouse.<\/p>\n\n\n\n

    Do:<\/strong> Hire\nprofessionals to help identify any areas of concern.<\/p>\n\n\n\n

    Don\u2019t:<\/strong> Think\nthat your realtor and home inspector will be able to unearth all the aspects of\na bad flipped house.<\/p>\n\n\n\n

    Do: <\/strong>Go with\nyour gut. If it looks like a duck and walks like a duck, it just might be a\nvery poorly flipped house. If something seems off about the property, the\nhouse, or the sellers \u2013 it likely is.<\/p>\n\n\n\n

    Don\u2019t: <\/strong>Walk away\nwithout really examining the house and its history. If it is a well-made home,\neven the sloppy errors and omissions quickly made by a house flipping team\nmight not ruin it.<\/p>\n\n\n\n

    Do: <\/strong>Ask for\nall receipts, permits and paperwork related to the flip. And then personally\ncheck them against the work that was done. Don\u2019t expect anyone else to be as\nthorough as you.<\/p>\n\n\n\n

    Don\u2019t: <\/strong>Take the\nsellers at their word. It\u2019s a tough lesson learned, but there are a lot of bad flipped houses out there \u2013 created by bad\nhouse flippers. Verify everything.<\/p>\n\n\n\n

    Think\nwe\u2019ve covered it all? Think again! Buying a flipped\nhouse is complicated business. There are plenty more flipped house dos and don\u2019ts \u2013 along with what to\ndo if you\u2019ve already bought a flipped house \u2013 in the following articles:<\/p>\n\n\n\n