Any opinion on flipped home?

[Narfcake]

Originally Posted by lemonegg

The mindset of someone who is renovating their house that they plan to live in for the next couple of years is different from an investor who just wants to get it done, get it on the market and sold asap.

Not always. I've ran into homeowners who were renovating their home, yet still went out and bought the cheapest materials (in price and quality) around. 60 cents/sq.ft. laminate flooring and 25 cents/sq.ft. vinyl tile ... they don't look that bad, right?

And I've ran into flippers who like SLC punk, did indeed spent more time and money into doing a better job because a quality job not only means a better sale, but knowing that they still did an honest day's work doing things right and that someday, their work will be someone else's home.

One time at a home improvement store, I struck up a conversation with a flipper. I was looking at porcelain tile; he was picking up travertine for the flip. As he put it - I spend $80 more on this (vs. ceramic), and it looks like I spent a thousand. A few hundred more for nicer stainless appliances (vs. basic white), and it looks like another thousand in upgrades. He summarized it with this - "I spend about 3-5 grand more than I need to, but I'm not holding on [my flip] for months either. Those ******* who do **** for upgrades don't sell - buyers aren't stupid."

[chet everett]

So much depends on the target. One of my buddies from way back has done some flips in neighborhoods so bad that he got away with installing used appliances in white becuase the stuff in other units for sale was still in the "harvest gold" , "fire orange" or "autumn brown" categories.

In contrast I have seen a few not quite clued flippers buy homes in upscale neighborhoods that should have been teard-ons. They foolishly spend money on 30" KitchAide SS range and matching 36" fridge only to see the whole place get torn down and the new place ultimately end up with 48" Viking range and about 60" of built-in subzero fridge and freezer...

Somewhere in the middle is where MOST "renovations prior to sale" happen and that mostly makes sense becuase the mainstream tastes and trends can often be a good value for both sellers doing the fix-up and buyers who are probably do at least a little cross shopping of new construction and/or thinking about making some renovations of their existing home instead of moving...

Originally Posted by Narfcake

Not always. I've ran into homeowners who were renovating their home, yet still went out and bought the cheapest materials (in price and quality) around. 60 cents/sq.ft. laminate flooring and 25 cents/sq.ft. vinyl tile ... they don't look that bad, right?

And I've ran into flippers who like SLC punk, did indeed spent more time and money into doing a better job because a quality job not only means a better sale, but knowing that they still did an honest day's work doing things right and that someday, their work will be someone else's home.

One time at a home improvement store, I struck up a conversation with a flipper. I was looking at porcelain tile; he was picking up travertine for the flip. As he put it - I spend $80 more on this (vs. ceramic), and it looks like I spent a thousand. A few hundred more for nicer stainless appliances (vs. basic white), and it looks like another thousand in upgrades. He summarized it with this - "I spend about 3-5 grand more than I need to, but I'm not holding on [my flip] for months either. Those ******* who do **** for upgrades don't sell - buyers aren't stupid."

[texdav]

If fixing it up with nothing major applies as fliped then most formally occupied have are flipped homes.

[CindyStrahota]

Due diligence in all areas is key...running the numbers for comps in the area, get an inspection by a qualified inspector and have your agent research the history of the house. Another good suggestion is to talk to the neighbors to find out the history of the house. If there is something major that happened to the house, they will probably know. See what your agent can find out about the "flipper" and if this contractor has a good reputation for doing good work. Perhaps you can talk to homeowners living in one of the homes they have flipped in the past.
In addition to having an inspector check out the house, bring along a friend or family member (or pay someone) with any carpenter/contractor skills, see if they will look at the house and give you an honest assessment about the quality of workmanship. Or find an inspector with experience as a contractor and ask a lot of questions during your inspection.

But bottom line is don't pass up a home just because it is a flip. I believe it is the investors that are going to turn this market around.

[khuntrevor]

I would buy someone's flip, before i engaged in a short-sale.