1. Who’s the seller?
You should be asking if the seller is an individual or LLC. People will use one-off LLCs to purchase a foreclosed home, renovate, and sell the property. But, when the buyer finds a defect in the property, the LLC was liquidated and has no assets. It no longer exists.
To tell the difference from a less scrupulous individual and someone who used them for a good investment, ask how long the LLC has been in existence. A longer track record means they stick around.
2. What was the scope of the renovation?
This is an open question that could get the owner talking about the property. You’ll learn about wall removals, major electrical or plumbing, or how old the roof and HVAC system are. Smaller rehabs will focus on paint jobs, flooring, and smaller renovations, so you’ll know how much money they put into it compared to its actual price.
3. Were permits used?
If they did any major work, it’s important to ask if there were permits and if there are copies. If they didn’t have the appropriate permits, that means they could very well have done substandard work.
4. Who owned the house previously?
Tracking the home buyer trail can help with any missed problems with the home. You want to know of every change that was made or not made, especially if the flipper was rushing to sell. They may not complete jobs if they are trying to sell quickly.
5. How long was the house vacant?
Knowing how long a house was vacant for will affect the future of the home. If it was empty for a long time, there’s room for flooding, leaking or freezing pipes, and vandals who may have destroyed a home. A renovation could have covered up a flooded or damp basement which unsolved would lead to mold growing and spreading.
6. Can we head outside?
Don’t forget the outdoors. Some problems in the yard will be a pricey fix. Make sure the fencing is good and, if there’s a pool, have an inspection done. Cracks can be expensive to fix.
For more questions, head to Realtor.com for the original article: http://www.realtor.com/advice/buy/buying-a-flipped-house-ask-these-questions-first/?iid=rdc_news_hp_carousel_theLatest
If you’re considering buying or selling a home, trust Linda Moore to get you the best offer: http://www.lindasellsmoore.com/