Be Cautious When Buying A Flipped House

  Рет қаралды 7,542

Jeb Smith

Jeb Smith

2 жыл бұрын

Are you a home buyer looking to buy a house and considering a flipped house? What are the pros and cons of buying a flipped house? Buying a flipped house as both positives and negatives and as a first time home buyer it's important to know what to look for when buying a home. In this video, we discuss the things that you have to do when buying a flip.
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Jeb Smith (huntington beach Realtor/orange county real estate)
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Пікірлер: 73
@Techpodshed
@Techpodshed 2 жыл бұрын
I'm a drywall contractor, I'd never buy a flipped house, I see what get covered lol
@olfab1
@olfab1 2 жыл бұрын
We purchased a flipped property in the middle of the hot market in Phoenix. Went through the inspection and nothing major came up, plus we had a brand new AC and roof, which was reassuring. We loved the layout, number of rooms and huge backyard. In comparison to the old never updated more expensive junk we saw selling in nicer neighborhoods, we decided to go with the flip. But you're right about all the little details that could drive you nuts, it happens to us every day, they did cut the corners. Before we moved in, we brought in a licensed contractor to add a couple of things we needed. He charged us top dollar and did an even worse job than the flippers. My conclusion is that flip or fixing it yourself, you are going to run into problems. May as well have somebody else go through the stress. Maybe perfection exists, but it will be for a very high price point.
@spurs5677
@spurs5677 9 ай бұрын
No you just didn’t do it yourself . If you actually do the work it’s worth it . If not don’t bother just buy a new home. You just waisted your time
@snickerdoooodle
@snickerdoooodle 4 ай бұрын
Your situation sounds exactly like ours. Home was obviously flipped but inspection from the most thorough local company came back clean. New roof, new AC, all looks really good. But it's when you move in that you notice stuff like a bodged electrical job, paint on every piece of functional hardware, missing the proper trim pieces between hard floor and carpets, etc. I still think we got a much better deal than any other house we were looking at, but it can definitely hit you hard with how cheap these people are lmao
@ashleympg
@ashleympg 2 жыл бұрын
We dodged a bullet. Recently became interested in a flipped property done relatively nicely, however it had many of the issues you're mentioning. You could see where the kitchen door frame was cut on one side to accommodate the refrigerator door open, New XL luxury shower door hit the toilet when it opened. There were many other details that made the home less than ideal. We ended up walking, and I'm so glad we did. It was going to be hard to leave our low interest, 15 year mortgage anyway. Now we sit here thankful for what we have!
@JebSmith
@JebSmith 2 жыл бұрын
🙏
@CoCo_Moody
@CoCo_Moody 2 жыл бұрын
Thanks for the tips. This was informative. I viewed a flipped home before. It looked great on the inside. However, crawl space door was painted shut. My realtor got it opened. Moisture and Mold!!!
@JebSmith
@JebSmith 2 жыл бұрын
Glad it was helpful! Yikes. Never good.
@EvaVas03
@EvaVas03 2 жыл бұрын
Same here just had an inspection and it rained the basement filled with water during the inspection. Glad this happened.
@snickerdoooodle
@snickerdoooodle 4 ай бұрын
All really good advice. We just bought a flipped house knowing there's definitely stuff to "un-flip", but the #1 thing i checked as soon as i bought it was the electrical. Good thing too, because they had no idea what they were doing!
@JebSmith
@JebSmith 4 ай бұрын
Best wishes as you continue to make the property your own. Thanks for watching and sharing your thoughts.
@Vanuhe
@Vanuhe Жыл бұрын
My left ear is pleased .. while right ear rested ..
@JoeyRose26
@JoeyRose26 Жыл бұрын
I do believe there are flippers out there that do it right. I wish I would have thought to research on buying a flipped house. Your video unfortunately is so true and I paid cash for a disaster. I was totally naive thinking I was getting a great deal with everything “looking” like I was moving in to a brand new house. WRONG! Let’s just say I fell in love with the staging as you mentioned. Within weeks it slowly all started to all come crumbling down. The list is endless! I will mention that I am 68 and live alone. First my drains, toilet, and shower all started backing up. My son came over and snaked so much crap, literally from the tiniest “new” toilet ever. Helped until I bought washer and dryer. Before I new it the toilet and kitchen sink overflowed everywhere! Causing the bathroom flooring, which was the cheapest fake wood flooring to come apart from the base flooring. Like walking on huge air bubbles! Two thousand dollars later and you can imagine the rest being this house is a hundred years old. Started the dryer blew the breakers every where! Thinking it was the used dryer and three dryers later a electrician found it was the electrical box hooked up wrong! More $$$. Now the roofs leaking due to the thaw here in N Michigan. There are no electrical plugs in the dining room and only two in the living room. The basement has none but lots of black mold. No door is straight with gaps and main door the door handle is ready to full off. Oh I forgot there was no access to the old iron pipes for repair inside and outside entrance was sealed shut so my son had to tear down a wall to get in. The shower handle is falling off and the shower never gets hot while the kitchen sink’s hot water will scald you. There’s no balancing act and we have tried everything! My ex husband had a profitable Heating, Plumbing and Cooling Business while we were married and has tried to help with what I could afford. The windows, not all are horrible, sealed shut and areas where cold air comes in. The list is endless including no towel bars or mirror in bathroom but with one of those cool rolling farm doors that go off track and slides open when your on the toilet facing the dining room table 😮 For future buyers don’t let the fancy stainless steel refrigerator or stove with top grill fool you. Which has a dent here or there. Don’t let the cool wood counters fool you when you realize quickly are not protected and water stains and whatever are there to stay. Sorry this is so long but it has been a year and is going on the market in two weeks with pretty much everything fixed that can be fixed for now. I hope this might help and I wish I would of known 🧐
@angelmika2010
@angelmika2010 2 жыл бұрын
I wish I knew this information a year ago. My husband had to relocate to another state and the house we bought was a flip. Months after buying the home we started to notice little flaws. I researched and noticed the investors never pulled permits on any repairs done to the home. He completely gutted and remodeled the home with no permits and now we can tell and have to get things done correctly so we won’t have any serious issues later. Thank you for sharing this information.
@JebSmith
@JebSmith 2 жыл бұрын
Sorry to hear that, unfortunately, it happens a lot.
@25mL
@25mL 2 жыл бұрын
@@JebSmith Don't the agents/sellers have to disclose unpermitted work?
@rudedog3529
@rudedog3529 2 жыл бұрын
@@25mL Yep.... In Cali, the CAR Disclosure goes in detail. Best defense is to have a home inspection co. go over it.
@Rob_G716
@Rob_G716 2 жыл бұрын
Basically almost every client that I have completed a loan for that bought a flip turned into disaster after they closed. Sure, are there good flips done right, yes! however, its a gamble.
@JebSmith
@JebSmith 2 жыл бұрын
Life is a gamble 😳
@Jameson77777
@Jameson77777 2 жыл бұрын
I was under contract for a flipped home that was beautifully remodeled from top to bottom. I paid for the usual inspection & added the mold & radon inspections. Inspection came back with extensive mold throughout all the walls & on every floor! It also came back with high radon readings. I backed out of the deal & didn’t care I lost out on the 1k I spent for the inspections. It was relisted a few days later & went under contract right away. I always wonder if the issues were disclosed to the buyer.
@mohammedsaleh5363
@mohammedsaleh5363 2 жыл бұрын
In California seller has to disclose these new findings to buyers.
@JebSmith
@JebSmith 2 жыл бұрын
They should have been disclosed........Key word is "should"
@OBI-KONOBI-ISRAEL
@OBI-KONOBI-ISRAEL 7 ай бұрын
The thing is this … it’s common info for buyers to shop around for perfection in homes. I look for the essential things such as roof, heat, infrastructure, radon testing, ect. Add on are not a big deal and the designs and fixing them are not either people including I will buy with the understanding that certain small things need to be fix not everything is worth running away from.
@snw1721
@snw1721 2 жыл бұрын
Pure Truth! I dodged a bullet as well. Home looked beautiful until inspection came in and the issues were endless, including hazardous wiring!
@JebSmith
@JebSmith 2 жыл бұрын
😳
@Techpodshed
@Techpodshed 2 жыл бұрын
Even licensed General contractors hire non licensed pirates lol
@JebSmith
@JebSmith 2 жыл бұрын
😂
@SKarsten90731
@SKarsten90731 2 жыл бұрын
My wife and I love going to open houses, to get ideas, to see what houses in our market are selling for. I saw a TV above the fireplace. After looking closely it was cardboard, no outlet no cable ran to it. I had another selling agent ask me to leave on a flipped house. The craftsmanship was so bad I was telling my wife all the crap work the flipper did. My agent called it “lipstick on a pig”. Even with my background I still have home inspections done. Money well spent.
@JebSmith
@JebSmith 2 жыл бұрын
Agreed 💯
@LoveLife-gv8jg
@LoveLife-gv8jg 2 жыл бұрын
Ms. Hills videos led me to you. Great content. Valuable information. Thank you My husband and I are in a war over purchasing a "used" prop vs. A brand new flipped home. The newer home has less character...I hate those laminate floors but the layout is to die for! The older home needs paint, and new cabinets🙄 I'm leaning towards the older home because of the neighborhood and schools
@JebSmith
@JebSmith 2 жыл бұрын
Thank you....... Yes, agreed that older homes have more character. Location is key
@adntigger71015
@adntigger71015 Жыл бұрын
Go older. At least you can make the changes yourself and oversee the quality. Good luck (if you haven't bought already)!
@Techpodshed
@Techpodshed 2 жыл бұрын
I'm working on a 1.4 mill rehab house, general contractor didn't care if bath wall had no insulation for sound. Buy a 2 mill house flip And you taking a dump and the sound going through wall lol But I installed the insulation
@Techpodshed
@Techpodshed 2 жыл бұрын
No no no make sure all your exterior walls are insulated! All that heat loss and cold coming in. Make sure attic is re insulated!
@daniellemuffler3948
@daniellemuffler3948 2 жыл бұрын
Here in south east Florida investors are not even bothering to remodel, etc.
@JebSmith
@JebSmith 2 жыл бұрын
Hahaha, some don't have to
@xoxo_kiyla
@xoxo_kiyla 2 жыл бұрын
I'm looking in the area and notice this as well. House is purchased for $200K, gets new 'wood-like flooring' and goes back on the market a month later for $300K🙄 It's incredibly frustrating.
@rossgossman6530
@rossgossman6530 2 жыл бұрын
Google maps… street view. Also look under the house… crawlspace.
@JebSmith
@JebSmith 2 жыл бұрын
💯
@MrABS369
@MrABS369 2 жыл бұрын
Jeb, we came across a property very close to our current residence that had extreme potential for my family and it was on the market for about 10 days. I think we were the first to actually go view the home with our realtor. Long story short, based on the Redfin description and info, it smelled of a flip to us before even seeing it (asking over $150K of the purchase price made just under a year ago). But # of beds/# baths and overall home size was very intriguing. Renovations looked good from pics so we asked for a viewing. Once there, we could see where it didn't come close to a home for the price point they were asking. Let alone no homes in my area are even priced that high. Wall light fixtures were missing covers, mirrors barley fixed to the bathroom wall, closets with no poles, stair banister not fully extending the stairway, paint trim poorly done, no cooling upstairs while it was very cool downstairs. The kicker was finding an inspection report in the kitchen that deemed the property NOT READY FOR OCCUPANCY, done two days before we visited, but 14 days after the property had been listed on the market for sale...🤔 That was a sign for us and a saving grace in case we were inclined to move forward even though there were things we didn't like. How can a property be listed for sale but failed the inspection? Someone could have very well been hoodwinked into making an offer (and still can be as the property hasn't changed) and not knowing all of the details especially with so many people waiving contingencies and inspections. But my wife and I have set standards and good eyes, and won't let the details go over our heads when making this very important first time purchase for our family. Also on that home, I recognized the contractor who was responsible for the work and not surprised by the shortcuts made as my parents knew them very well, years of history. We dodged a bullet but also just disappointed in what could have been especially with location and description of the property. We still have faith that things will fall our way soon. Preciate all that you and Josh do for the community bro...peace and love 👌🏿
@JebSmith
@JebSmith 2 жыл бұрын
Well that sucks........but sounds like it could have been a lot worse. The right one will come along soon. You're welcome!
@katieweiher
@katieweiher 2 жыл бұрын
A clear flip giveaway IMO is a dishwasher that opens up in front of the sink, meaning that you can’t stand at the sink and have the dishwasher open at the same time.
@yuliskarodriguez7892
@yuliskarodriguez7892 2 жыл бұрын
Very good information! Thank you!!
@JebSmith
@JebSmith 2 жыл бұрын
🙏🙏🙏
@karimaferras9083
@karimaferras9083 2 жыл бұрын
Thank you for the valuable advise. It’s very unusual to find a highly moral realtor in San Diego. Will definitely contact you for real estate transactions. Thank you
@JebSmith
@JebSmith 2 жыл бұрын
I know a few if you need them
@gravity-zero2917
@gravity-zero2917 2 жыл бұрын
Investors are gonna hate u for leaking their secrets 😆 thanks for the reminder and keep up these contenets...👍
@JebSmith
@JebSmith 2 жыл бұрын
Thank you.
@Techpodshed
@Techpodshed 2 жыл бұрын
Nice new drywall and paint but under the sheetrock sometimes dry rotted and mold
@JebSmith
@JebSmith 2 жыл бұрын
🤦‍♂️
@alvinsingh9750
@alvinsingh9750 2 жыл бұрын
Can you do update video of your rental property or do some rental property videos. thanks
@JebSmith
@JebSmith 2 жыл бұрын
What are you looking for exactly? Email me at youtube@jebsmith.net
@vibhash3108
@vibhash3108 6 ай бұрын
Hi Jeb, Very educational video. Thanks so much! We have made an offer to buy a flipped house. Everything looked nice and updated including new roof, floor, dry wall retexturing, kitchen and bathroom remodeled, new hvac, flooring, all new windows. We got it inspected and inspector did not find major issues. Few areas of poor insulation, gfci not installed in few areas, slight levelling issues. We asked the seller for details or paperwork of roof and windows but they are not providing it saying workmanship warranty has expired. House was flipped a year ago and sitting on market for 6 months likely due to high price. Is it typical for investors who flipped to not provide details of work done? Like what roof etc. Is this fishy enough to back out? Also, what other things we need to do. We are getting structural enginner, roof specialist and plumbing camera inspection.
@JebSmith
@JebSmith 6 ай бұрын
Hi @vibhash3108, It's quite common for flippers not to provide extensive details of the work done. If the workmanship warranty has expired, it isn't likely problematic, especially since your home inspector didn't find any major issues. Given your home inspector's findings, your decision to bring in a structural engineer and a roof specialist is a sound one. Make sure you also check all permits and codes with the city to ensure all renovations were done up to standard. Your extra inspections should provide you with peace of mind and a thorough understanding of any potential problems. Monitor the plumbing camera inspection to ensure the sewer line is in good shape. If you're uncertain, maybe get another inspection to see if it brings up any other issues.
@vibhash3108
@vibhash3108 6 ай бұрын
@@JebSmith thanks a lot!
@vibhash3108
@vibhash3108 5 ай бұрын
@JebSmith thanks for the advise. Turns out that the contract did not get any permit for work on foundation, roof replacement, bathroom remodeling, interior remodeling. They could not provide details of work done so we backed out. Your video was very helpful and saved us potential trouble in long run.
@lucyv4416
@lucyv4416 2 жыл бұрын
It is an emotional buy… sigh so true for me
@JebSmith
@JebSmith 2 жыл бұрын
💯
@TexansForChrist
@TexansForChrist 2 жыл бұрын
Did my right ear suddenly stop working?
@JebSmith
@JebSmith 2 жыл бұрын
Did something happen with sound?
@katieweiher
@katieweiher 2 жыл бұрын
😆 I also had that concern. I think the video feed is the issue.
@Bandit673
@Bandit673 2 жыл бұрын
as an investor myself, Hes 100% right. for the most part I keep my rehabbed properties and rent them out. however, I've done a couple of flips, mostly to friends and family. An anecdotal tale, I bought a distressed property and across the street there was another one someone else had purchased. pretty much both full gut rehabs. I wound up talking to the guy who bought the other one and was trying to compare budgets. my total rehab cost was like 100k his was 50k. I was so confused until I saw he wasn't updating the plumbing, electrical, hvac, replacing the 20 plus year old roof. needless to say I don't think the family that purchased his house will be very happy with it in the long term.
@henryjohn972
@henryjohn972 2 жыл бұрын
Could be a flipped mess....Agreed...And I didnt watch the video yet....
@henryjohn972
@henryjohn972 2 жыл бұрын
"Great buyer beware video"
@henryjohn972
@henryjohn972 2 жыл бұрын
So so so true.....Your best video....
@henryjohn972
@henryjohn972 2 жыл бұрын
Like buying a used car.......Take Your time....Get it checked out....Worth every Penny so you dont end up with a nightmare....
@JebSmith
@JebSmith 2 жыл бұрын
🙏💯👍
@youtubecarspottersguide1
@youtubecarspottersguide1 2 жыл бұрын
cheap tasteless un permitted flip and run ask the agt see the org mls listing if there is one? see lot of flips they often paint over the termites
@JebSmith
@JebSmith 2 жыл бұрын
💯
@househunter1586
@househunter1586 2 жыл бұрын
Should say be cautious when watching this channel.
@Techpodshed
@Techpodshed 2 жыл бұрын
Fake will and dealer investor flippers Stop being scared and build new homes.
@lickalotlickalot2210
@lickalotlickalot2210 4 ай бұрын
I would never buy a flipped property! Why pay a profit to some stranger who had never lived in that house to care what quality to put in. Instead of this I could buy an old home nearby for much cheaper and use the money on renovating the house exactly to my style and the quality I picked! Oh and the profit is in my own pocket!
@JebSmith
@JebSmith 4 ай бұрын
Flipped properties, attract buyers who desire a move-in ready property or those who might lack the time or inclination for a full renovation project. Both paths have distinct benefits and one's decision certainly depends on personal preferences and circumstances.
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