Is it okay to buy a house that was flipped?

Question

I have been in the real estate market for awhile and I'm wondering if I should steer away from houses that have been flipped? I've been extremely cautious, but I have looked at a few open houses that was flipped by a specific realitor. The houses they rebuilt look nice and most updates include electrical, plumbing, and roofing. It is a concern if these updates were updated correctly, but if I hire an independent inspector and the house passes, should it still be a concern if the house was done correctly or could i rest in peace?

Lastly, if a house has been flipped, is it by law (in ohio) the contractor must warrantied/guarantee the work?

thanks.

Answer 1

No reason to steer away from them. Typically, an investor/rehabber will have done an adequate-to-good job rehabbing. That all depends on the contractors, of course. But an investor (a smart one, anyway) will try to match the quality of other new/newer houses nearby. So, in more upscale places, it may be granite countertops and stainless steel appliances. In less upscale places, it can be formica countertops and regular appliances.

A rehabber will have tried to do it inexpensively, so the new windows probably cost about $200 apiece, not the $300 or more you might have ended up spending. But anything that has to meet code (electrical, plumbing, roofing, major structural changes) that has, in fact, been inspected should be OK from a code standpoint.

You should certainly have a home inspection done, as you asked about. But that's the case for any property, new or older, rehabbed or not.

I don't know what Ohio law provides.

However, you might also consider getting a home warranty. They cost about $400, and while they're not great, they do protect against major repairs.

Answer 2

I am an investor in Gainesville, Fl. It's a perfect time to buy, especially if it's been a flip. Most flippers got caught in the upswing and are desperate to sell, even at a loss. The good news is that the house is in great condition, and the seller will probably loose money.

I believe that work done for a homeowner is only warranted to that homeowner.

Answer 3

You should approach a "flipped" property the same way you would approach any other property.  An inspection will be helpful.  You might also check with the local municipality to ensure repairs were properly permitted.  If you can contact another owner who purchased a repaired home from this seller and get a recommendation, that might also help.  I do not believe that a contractor is required warranty repairs here in Ohio, but if you ask, they may offer a warranty anyway.

Answer 4

IN my area, only contractors of new construction are required to warranty their work, and even that is a pretty flimsy warranty in regards to enforcement.  What you are going to rely on here is the seller's disclosures.  

If the work was done with quality in mind, it should be fine.  If the flip was done with the eye exclusively on the bottom line, the workmanship could be shoddy, and you will regret the purchase.

Make your offer contingent upon you approving a home inspection.  What you pay a good home inspector is money well spent.

Answer 5

I'd do it.   You do not get any contractor guarantee unless you have it in writing from each contractor... you'd have to get that from the seller.  

You must be tempted to do a flip yourself.  I did 2 and 1 one was big success.

Answer 6

I'm in MI and only builders for new construction are required to warrenty some aspects of their work.

As far as flipping houses; if it the house was a foreclosure (Fannie Mae and Freddie mac in particular) it could be required the property has to be owned for 3 months before being flipped or resold.

When you find the right house have it inspected and ask the seller to provide copies of the building permits, then you should be okay.  Buying a home is a big investment and with any investment there are always risks.