House Flipping & Remodels VS Building Code in Dallas

[escanlan]

Originally Posted by Sunbather

In reality, I expect a lot of these homes to sit on the market for a while or get sold to someone unsuspecting / someone who gets starry eyed by the finishes and ignores their home inspector.

But the bigger question is: Is this the generally accepted culture in home buying in Dallas? Is this merely the result of the rapidly increasing prices we've seen in the last several years bringing every armchair house flipper out trying to make a profit who doesn't understand or doesn't value the structure/MEP in these homes? Do people just bypass the permitting process or have greedy/lazy listing agents who don't review the homes they are selling before they list them? It's a rather frustrating trend that seems to apply to (honestly) most remodeled homes I see on the market here. It takes all of 15 minutes in some of these homes for the red flags to start flying.

The reasons are many but the main one being a combination of the highlighted above, the vast majority of buyers not being knowledgeable about the building and the issues that can be present with a flip, and investors/flippers who were taught "Lipstick On A Pig 101" instead of how to properly renovate a home. For so many investors/flippers it is all about finding a 3/2/2 home they can buy cheap enough to put in a few thousand dollars into "Pretty" and sell it for some large amount over what the total investment was. They were taught "You can't get rich doing it right!". Doing it right means raising the sale price above the others who are doing it wrong which means a longer hold time and possible lack of a sale.



In my time inspecting homes I have worked for many investors/flippers and ran across one who really did it right all the ay! For him though it was more of a hobby and he made little profit off of it as a result. He would rather put his name on a properly renovated house than make it rich. Hey Bruce Y. if you're still around I do remember you!!


As for building codes they are a bare minimum set of standards to build a safe and habitable home. They can be easily exceeded but that comes with a cost. What you seem to be seeing is most likely a lack of investor/flipper actions in actually applying for proper permits for their work. I encountered that many, many times inspecting for both investor/flippers and buyers of those homes. Again this is something that buyers are not sufficiently aware of and are not being schooled in. Buyers are relying at least on their Agents if they have one and hopefully their Inspectors if they choose to hire one. Unfortunately many do not hire the latter and only find out after they own the mortgage that the work was not properly performed.

[TeamLynn]

It's a cost factor. Most buyers are not willing to pay for quality, they want to pay for shiny.
It's not just plumbing and electrical...it's all other kinds of product too.
Even the new homes have their issues.

[BigDGeek]

Originally Posted by loves2read

The flippers are just as bad about watching HGTV as the buyers...

True, but I think they watch it to figure out what their uninformed, Pinterest-addicted buyers are looking for. That's what I'd do if I was flipping houses.

[KXM]

I've been reading this thread - very interesting. I live in a rent house in the Casa Linda area - closer to the lake. I've been here 17 years and finally decided to buy the place from the owner. The house isn't bad but the owner put an addition onto the back that is an absolute piece of crap. He used day labor. I am going to tear it off and put a two story addition onto the back. I also am going to replace all the plumbing, wiring, HVAC, ductwork - all the guts of the house. The interior needs updating but that's not my priority until all the other stuff is done. I don't intend to flip it. I'm going to live here until I croak. My question is, can anyone advise me on how to find a really good contractor that does good work? I'm paying cash for all of this and I want it done right. And a really good, tough inspector. I'm not a HGTV type buyer. I want stuff to work and once I pay for it all, to not have to pay for it again anytime soon.



I also go around and look at the flips in this area. I get alternately amused and enraged. The greed in this area is simply off the chain and yet very little is selling. There are 3 houses listed within a block of me at $800K and they are not new.


In the past few years, I would get 10-12 flippers knocking on the door every spring or sending junk in the mail but this year, none. I find that very interesting.

[Cd225]

Originally Posted by KXM

I've been reading this thread - very interesting. I live in a rent house in the Casa Linda area - closer to the lake. I've been here 17 years and finally decided to buy the place from the owner. The house isn't bad but the owner put an addition onto the back that is an absolute piece of crap. He used day labor. I am going to tear it off and put a two story addition onto the back. I also am going to replace all the plumbing, wiring, HVAC, ductwork - all the guts of the house. The interior needs updating but that's not my priority until all the other stuff is done. I don't intend to flip it. I'm going to live here until I croak. My question is, can anyone advise me on how to find a really good contractor that does good work? I'm paying cash for all of this and I want it done right. And a really good, tough inspector. I'm not a HGTV type buyer. I want stuff to work and once I pay for it all, to not have to pay for it again anytime soon.

I’d suggest talking to Bella Vista Company. They’re on Garland Road, at around Tavaros or Ocalla. If it’s a job they’re willing to do, they’ll do it right.

[EcoDeb]

Buyers need to ask for those GREEN stickers given by the City or County PERMIT Department and Building Inspector. Until lenders and appraisers start to differentiate between non-permitted flips (btw going to the studs requires you bring up to today's code, done enough of those new child-proof reciepticles) and those of us who do it up to par and then some, it will be the same old same old. This is why I will no longer FLIP homes, I get everything inspected, very proud of my large piles of green GO tags My last house will be up for sale this fall, I don't sell them cheap, but know I have a very HAPPY, satisfied customer who doesn't have to guess whats behind the walls or outside the walls. I've done all that for them!