You're not alone if you're flipping and flopping over buying a flipped house. Is it a good investment? Bad investment? Safe or risky? Our real estate agents know it's a tough decision. The fact is that some flipped properties can be beautiful opportunities, while others are poisoned fruit to be avoided at all costs. As with any real estate purchase, due diligence and a cautious eye can help you choose the former and avoid the latter.

Atlanta homes for sale are a hot commodity, and many investors are purchasing distressed properties, fixing them up, and selling them for a quick, tidy profit. Some of these individuals devote significant care and attention to every last detail in the process. Wary of potential legal consequences, these individuals go through the home and properly resolve critical issues such as leaking roofs and faulty wiring. They secure the necessary permits and ensure the work is done by qualified, licensed, and insured plumbers, electricians, roofers, etc. But, these individuals and the properties they renovate, restore, and remodel are not the norms.

Flippers can be amateurs. Inspired by television reality shows, home remodeling programs, and YouTube videos, these individuals purchase cheap properties hoping to make a quick buck. Because if Bob Villa can fix up a house, so can they. These individuals focus on cosmetic changes. They will usually slap a few coats of paint on the walls, upgrade the flooring, update the lighting, and the house is back on the market in no time at all. But, lurking behind the fresh paint and discount building materials, are costly problems just waiting to bite into the wallet of an unsuspecting buyer. 

Due Diligence is Critical

Due diligence is critical when considering any real estate purchase. First, find out if the house has been flipped. Your local real estate agent and/or title representative can show you the chain of ownership. Your agent is essential because they can spot problems with the paperwork and property that you may overlook. 

When inspecting the property, always ask:

• What work was done?
• Who did the work? 
• Can you show me the permits?
• What were the result of plumbing, electrical, roofing, foundation, etc., inspections?

If there's no official record of the work and the seller can't provide quick, honest answers to these questions, then it's best to walk down the road to the next property on your list.

If the paperwork seems to be in order, that's not necessarily a green light. You will also want to hire a home inspector to complete a thorough top to bottom inspection of the home. Yes, a home inspector will cost you a few hundred dollars. However, when you consider the potential costs associated with purchasing a lemon, it's a tiny price to pay for peace of mind and ensuring you don't fall into a money pit. 

Don't Hesitate to Dig Deep

Never hesitate to ask lots (and lots more!) questions! Georgia's home disclosure laws are far from ideal for buyers. According to Nolo, while state statutes don't require sellers to fill out a disclosure form, Georgia courts have ruled that home sellers must inform buyers about any defects in the home's condition.

Are you considering purchasing a flipped house in Atlanta? Contact us, and we'll be happy to help you find the ideal home for you and your family.