A Portland Realtor's Ultimate Guide to Buying a Flipped House

When purchasing a flipped house, it's essential to be vigilant and watch out for potential warning signs. A flipped house is one that has been bought, renovated, and then put back on the market, often at a higher price. While many flipped homes are beautifully renovated and structurally sound, some may have been hastily repaired to maximize profit. Here are some warning signs to look out for:

1. Inconsistent Quality of Work

One of the first things to check is the quality of the renovation work. If you notice inconsistencies, such as uneven flooring, sloppy paint jobs, or poorly installed fixtures, it could indicate that the renovations were done quickly and cheaply. Take a close look at the details, including baseboards, countertops and tile installations.

2. Permits and Inspections

Always ask for documentation of permits and inspections. Your Realtor can help you do this research. Major renovations, such as electrical, plumbing, or structural changes, typically require permits. If the seller cannot provide these documents, it may mean the work was not done up to code, which can result in costly repairs down the line for you.

3. Water Damage and Mold

Water damage and mold are significant issues that can be covered up with a quick coat of paint. Look for signs of water damage, such as stains on ceilings and walls, musty odors, or warping in floors and baseboards. Don’t hesitate to check under sinks, around windows, and in basements or crawl spaces.

4. Foundation and Structural Issues

A flipped house might have cosmetic upgrades that hide more severe structural issues. Look for cracks in the foundation, uneven floors, or doors and windows that stick. These could be signs of underlying problems that need professional evaluation.

5. HVAC, Electrical, and Plumbing Systems

Older homes often have outdated systems that need upgrading. Check the age and condition of the HVAC system, water heater, and electrical panel. Ask when these systems were last serviced or replaced. Inadequate or outdated systems can be major costs in coming years and can lead to high utility costs and potential safety hazards.

6. Poor Ventilation

Improper ventilation can lead to moisture buildup and mold growth. Ensure that bathrooms and kitchens have adequate ventilation systems. If you notice condensation on windows or a general damp feeling in the house, it could indicate ventilation issues.

7. Quick Turnaround

Be wary of houses that were bought and flipped in a very short period. A quick turnaround can be a red flag that the renovations were rushed. Research the property’s history to understand how long the current owner has had it and the nature of the work done.

8. Unresponsive Seller or Agent

If the seller or their agent is reluctant to answer questions or provide documentation, consider it a warning sign. Transparency is crucial in real estate transactions, and any hesitation to share information could indicate potential issues.

9. Hire a Professional Inspector

Always hire a professional home inspector to thoroughly evaluate the property. An experienced inspector can identify problems that might not be visible to the untrained eye. Ensure that the inspection covers all major systems and structures of the house.

Buying a flipped house can be a great investment if the renovations are done correctly. It can be ideal to move in and not have to make any immediate upgrades. However, it’s crucial to conduct thorough due diligence to avoid potential pitfalls. By watching out for these warning signs, you can make a more informed decision and ensure that your new home is a sound investment.