Dangers of Buying a Flipped House or Distressed Property

Late night TV and internet ads induce people to do things that are apparently stupid and house flipping may be one of them. There is no potentially vile, evil, financially destroying or dangerous place than a bad flipped house or distressed property in my opinion. Good people with good intentions may unfortunately get sucked into the vacuum of hell.

A novice or a rotten person may buy a cheap house (usually) in poor condition, puts cheap lipstick on the pig and sells it to unsuspecting buyers. It's cosmetic and you don't see the structural and mechanical band-aids. Any of these homes are recommended to be tested for mold and only inspected after a period of heavy rainfall.

You need to know the sales history of any property. Unfortunately people spend more time choosing a personal computer than a home and spend more time choosing a car than a mortgage.

"If it looks to good to be true it probably is"

It's not hard to surmise if the house is a flip house from the tax rolls. With these homes you never ever want a cheap, weak, unknowledgeable inspector but the smart ones know better and may commonly avoid them. Catch-22.

One inspector in Houston indicated in the last eight flipper houses he did the buyer walked away every time. Others indicate the same results and still others have more colorful opinions. But you'll probably use the inspector picked out by the agent on a list and almost everyone in the transaction gets rewarded.

If you decide to buy your "good deal" then require a bond from the seller in the full amount you are paying that can be used as a one year warranty (or more).  Termite damages could be rampant and concealed by the flipper. Unless you open up the walls you will never know what damage is behind them. A termite inspection does not mean there are no termites. You are at great financial risk if you do not protect yourself and really research any property. You also don't know if the seller got caught up in a flip house deal and is now bailing out. Sales history is important. Not everyone moves for the good ole' job transfer, smaller or bigger home. People do make mistakes.

Disclaimer: Not all flip houses or distressed properties are bad. Some might be in habitable condition for the limited time of the inspection. Our flip house inspection fee starts at $1,250.00 for up to 2,000 sq. ft. We don't inspect flip houses over 10 years old or flip houses in the unincorporated areas.

Do Not Underestimate Flipped Properties

http://flippingjunkie.com/2012/the-dark-underbelly-of-flipping-houses

http://www.handsonhomebuyer.com/blog/buying-a-flipped-house-dont-flip-out/

http://www.businessweek.com/the_thread/hotproperty/archives/2007/04/anyone_have_an.html

http://www.reallyrottenrealty.com/realestatecareers.html