It’s hard to miss all the Flip/House Makeover shows on television. Some of the transformations are incredible, but some transformations seem ‘too good to be true.’ Okay, maybe they are ‘true,’ but are the makeovers good enough to last in the long term?
Around the country, newly renovated homes are wooing prospective buyers. Be mindful of the big picture, step back, and remember that the home you’re searching for is a long-term investment. While futuristic appliances and gleaming hardwood floors may seduce you into making a quick offer, understand that there’s much more to a home than what lies on the surface.
Investors who renovate homes want to maximize their profit as quickly as possible. While many are upstanding individuals, some will cut corners to boost their returns. Sometimes, when a home is renovated, an investor will do a “Lipstick Flip.” A “Lipstick Flip” means fixing up what’s cosmetic and leaving the rest as-is. Paint, flooring, appliances, fixtures –all may get a tune-up. But this doesn’t necessarily take into account foundation issues, leaks, plumbing problems, and work performed without permits.
Foundational and mechanical problems are a significant concern, but we would like to caution buyers that cosmetic changes need to be inspected for quality. It doesn’t take much to have a new DIY floor present problems. Just take a quick look at the quality of the products used and the renovation details before getting ‘wowed’ by the fresh new paint.
Once buyers close on a home, they’re responsible for the home. This includes issues that may be costly to repair or remain simply unsafe for habitation. It’s vitally important you take the necessary steps to protect yourself before signing off. Here are some tips to prevent the headache and heartache of a bad “Lipstick Flip” home:
- Do not waive the inspection. In addition to the usual areas, have inspections for exposed wiring in the attic and mold. Include a termite inspection.
- Request a comprehensive list of all work completed.
- Ensure the work on the home passed inspection and is up to code. Request a copy of the certificate of occupancy.
If the seller balks at these requests, it may be necessary to pass on the home. If issues come up during the inspection, you may change your mind about the house, or you may negotiate for repairs or closing credits, depending on your agent’s advice.
Don’t worry, not all flipped homes are money pits. Prescott has many homes to offer. Some are recently renovated, some are simply beautiful. But as a trusted real estate group, we like to be certain our clients don’t get burned! Let us use our years of experience and help you look for your next home: 928.775-0400