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Problems With Flipped Houses | Zillow Blog

Home flippers buy dilapidated houses, fix them up, then sell them again as quickly as possible with the intention of making a tidy profit. ?Flipped houses look shiny and new inside, but what?s going on underneath all the new drywall, carpet, and paint?

Very few home buyers seem to trust flippers, and with the cheesy ?repairs? or ?cover-ups? done over the years, it?s easy to understand why. ?Most of the quick and dirty home flippers take the same shortcuts when flipping houses. Here are the tell-tale signs of a flipped house:

Interior

The interior of the home looks great. ?The kitchen has all new or re-painted cabinets, stainless steel appliances, granite counter tops, and a tiled floor. ?The first floor bathroom has been completely re-done, and a second floor bathroom was recently added, or possibly a basement bathroom. ?They look great. ?All new carpet, paint, light fixtures, outlets, and switches throughout the house. ?Possibly all new windows as well.

When looking at flipped houses, you might notice poorly designed kitchens (i.e., cabinet doors / drawers that are blocked by other cabinets), nail holes that aren?t filled, appliances installed without an outlet to plug them in to, and loose / unsecured countertops or base cabinets. ?Bathrooms will often have vanity cabinets that are way too small for the space because the flipper bought the ?special buy? vanity, top, and faucet combo on sale at whatever home improvement store that was nearby.

The handrails are new, but they might come right out of the wall if you pull on them.? Sometimes they are only attached to drywall.

Electrical

There is a brand-new circuit breaker panel installed in the basement, which replaced the old 60-amp fuse panel. ?The new panel has a state electrical inspection sticker on it, and everything looks great. Actually, there aren?t many electrical problems on flipped houses. Even the worst home flippers usually know better than to mess with the electrical; they don?t want their houses to burn down.

Heating

The home has an old, unsafe heating system at the end of its life expectancy. ?The flipper has documentation from ?their guy,? saying the heating system is safe. ?You should be suspicious.? Many times, heating safety check forms aren?t worth the paper they were written on.? Furnaces and boilers can create high levels of carbon monoxide that the heating contractors say are fine.? Make sure you have the gas company do their own test on the systems.

Another possibility is that the heating system was completely replaced. ?If so, that?s great, but check the furnace?s blower fan for drywall dust. ?There?s a good chance that the flipper had the blower fan running while they were doing their drywall sanding, and the interior of the furnace is completely caked in drywall dust. ?The photo below shows a close-up view of a furnace?s blower fan blades covered in a thick layer of drywall dust.

If the home was originally heated with a boiler, the home flipper most likely pulled out all of the pipes and radiators and converted the system to forced air; this is usually far less expensive than repairing or replacing the existing system.

Air Conditioning

If the house is being sold during the winter, the AC is very old and may not be functional. ?If the house is being sold during the summer, the AC is brand new and keeps the house very comfortable.? There isn?t much in between those two extremes.

Structure

This is the item that home buyers are most concerned about, especially on a flipped house, but honestly, there aren?t more structural problems on flipped houses than with any other house.

Plumbing

The water distribution pipes will either be in acceptable condition or they?ll all have recently been replaced; no issues there. ?There will be major problems with the drains though; nobody has lived in the house yet, so nobody knows about the leaks and clogged drains. ?The old steel drain lines are often clogged at the kitchen sink, and possibly at other locations.

New plumbing fixtures often leak when they?re filled with water and then drained; it?s not unusual to find several leaking drains at flipped houses.

Sometimes floor drains, basement showers, or even basement sinks back up with water when the plumbing fixtures at the upper levels are filled and then drained. ?That?s exactly what was happening with this new basement bathroom sink at a flipped house (video below).

Tiled shower floors are also notorious leakers at flipped houses. Be aware.

Roofs

The shingles on the roof are in bad shape. ?You?ll find patched sections of shingles or shingles that are badly deteriorated and at the end of their life expectancy. ? Replacing the roof covering is an expensive project, but it won?t make the house sell for any more money, so flippers leave the roof alone if it?s not leaking. ?I can?t say I blame them.

Insulation

The insulation in the attic hasn?t been touched for a long time ? it might even be original, and it will need improvement. ?Flippers don?t get any return on their investment for new insulation, so don?t expect anything to be done here.

Exterior

Shoddy workmanship abounds at the exterior. ?The original wood windows were replaced with vinyl inserts, but the old wood at the exterior is still rotting away and has been freshly painted, or someone did a quick and dirty job of wrapping the windows with aluminum and left a lot of rotted wood still exposed.

The basement windows have been replaced with whatever size window was close, ?and the flipper used clear pine or plywood to make up the difference in size. ?This is sloppy workmanship, at best.

Some of the siding repairs may even be comical; During a recent home inspection, we saw a hole in the siding that was repaired with a coffee can lid.

There is a thin layer of new wood chips surrounding the house, but nothing has been done to correct improperly pitched soils around the house that can lead to a wet basement. You?ll want to re-grade right away.

The chimney has a lot of missing mortar and cracks in the crown. ?You?ll need to hire someone to repair the chimney to help prevent the deterioration from getting worse.

Conclusion

If you just finished looking at a flipped house and you didn?t find any of these issues, buy the house! But, make sure to take a closer look. ?These are the defects often found at flipped houses, but keep in mind, these are broad generalizations. ?Some flipped houses aren?t in nearly this good of shape, while others are pristine. There are plenty of good contractors who do excellent work, but it?s the rest of ?em that give home flippers a bad name.

If you?re buying a flipped house, the items you should pay the most attention to should be the exterior, roof, insulation, and drains. ?Individual results will vary.

Related:

What Do Water Stains on Windows Mean?

Is Your Deck Safe?

How To Choose a Home Inspector

Reuben Saltzman, Structure Tech Home Inspections, Minneapolis, Minn., is a second-generation ASHI Certified Inspector whose experience with home remodeling and construction began at age four when he helped his father steam wallpaper. He has worked for Structure Tech since 1997 and joined ASHI in 2004. Visit his blog at www.structuretech1.com/blog/.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

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Things that should be considered before leasing a commercial real ...

For any investor new-fangled or knowledgeable one, when you invest in a commercial property you really want to make sure that it will maintain its worth for a longer period of time. No disturbances on the in and out of financial expenses that it would really work out as you have planned it. Definitely, it is really important to choose the right commercial property especially if you are planning to put up a long-term business.

Investors have so many choices to choose from when one is looking for a long-term investment. That is when commercial real estate lease enters the picture. It is considered as one of the best investments that an investor can own.? Typically, these commercial properties are used for their business and usually serve as the foundation of their business. Even if most investors are having a really hard time in making up their minds whether they are going to lease or own the property because of financial matters that needs to be considered they still have to remember the important things that needs to be think about in buying or renting a property.

One of the best things to do in finding the best commercial real estate lease is checking the property listing.

It should first come in hand for them to be sure of its worth. One of the best sources of information is the internet. It provides all the necessary data that you are looking for with regards to this matter. You can easily have plenty of options to choose from all you have to do is visit many sites There are different types of commercial real estate properties that is accessible and you have to broaden up you?re alternatives so you could have the best choice.

One of the things that need to be considered is the accessibility of the place to consumers.

It is important to find out if the place is capable of making money so you?ll be able to know if your business is doing well. Eventually this would let the possible tenants think as good lease property that they should acquire. This would enable you to increase the rent owed from your tenants, so that their fees will continue to cover the costs that you?ve compensated. You should at least put up all the options that need to be reviewed in order for your business venture to be successful.

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The following article was written by Steve Gilbert MP and published on the Liberal Democrat Voice Website.

In 1952 a flood ripped through the Devon village of Lynmouth wrecking scores of homes, taking the lives of dozens of people and costing millions in rebuilding work. In 2010 Cornwall was hit by flash-flooding with hundreds of homes and businesses devastated across the south of my constituency.

In the 50-odd years between the two events most parts of our country were hit by floods at some point. Over five million people in the UK are now at risk of flooding from rivers or the sea in the UK, and severe weather events such as freak storms can cause flash floods that devastate communities (such as Boscastle in 2004) within a few hours, making many more of us vulnerable. Furthermore, the risk of flooding is set to increase in the coming years, as climate change takes hold.

Where flooding does strike, it?s only when the devastating flood waters recede that the full impact becomes clear, both in terms of the damage to lives, homes and livelihoods, and in terms of the financial impact. The 2007 floods alone cost the UK economy ?3 billion. One thing that gives us some peace of mind, however, is our household insurance. Of course, we can never replace the people, the memories or the mementos that the flood waters wash away; but insurance gives us the comfort that buildings and furniture can be replaced and lives can be slowly rebuilt. 135,000 householders and 35,000 businesses claimed on their insurance following the 2007 floods. Now imagine a world in which large numbers of people living in flood risk areas can?t access or afford to pay for flood insurance: that?s precisely the scenario facing many parts of Britain, notably Devon and Cornwall.

Next year the ?Statement of Principles? ? the agreement between the Government and the insurance industry that means insurance firms must offer cover for flood risk areas ? runs out. The Government and insurance industry argue that the Statement of Principles is unsustainable, saying that it distorts the market and doesn?t reflect the risk that some areas face. The ending of this agreement means that the country is likely to move to a market-based insurance system for flooding, where people and businesses will have to pay higher premiums which more accurately reflect their risk of flooding.

While renewing the Statement of Principles isn?t an option, the reality of leaving it all up to market forces is that hundreds of thousands of low-income families in high-risk postcodes will struggle to find or to afford flood cover, leaving them in the horrible situation of being at high risk of flooding but unable to take the responsible approach and make sure they?re insured.

We know that there is a link between flooding and deprivation. Without a workable solution agreed and in place within the next year, insurance prices will rise, pricing families on low incomes, like many in my constituency, out of the market and leaving them worrying every time heavy rain is forecast.

Since it?s virtually impossible to sell an uninsurable house, house prices in the worst affected areas would plummet, trapping the vulnerable and those on low incomes in new areas which are likely to emerge as what the Environment Agency calls ?deprivation hotspots?. And, in the event of a flood hitting, lives will be utterly destroyed as families and businesses lose everything without the recourse to funds for rebuilding.

This is not acceptable, but we are running out of time to make sure that it doesn?t happen.

We need to find a mechanism which continues to ensure that flood insurance is available, affordable and fair. That?s why I am arguing for an insurance premium cap ? a limit to the amount homeowners and businesses are expected to pay for flood insurance. Put simply, this would act as a safety net for the people and communities who need it. If the cost of insuring a property is above the cap then the insurance industry and Government would work together to pool the risk and target support.

The key question is how to set the threshold for such a pool: if it?s too high, it will still price those on lower incomes out of the market; if it?s too low, it will both make it less attractive for insurers to offer cover outside the pool. That would result in the pool being too large and act as a disincentive for property owners and communities from investing in flood resilience and prevention in their own properties.

One thing I am clear about is that it?s not acceptable for us as a society to pull the ladder-up from those who could be hardest hit. We must ensure that flood insurance is both widely available and affordable and that any new flood insurance regime protects the most vulnerable.

Steve Gilbert is Liberal Democrat MP for St Austell and Newquay

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