House flipping is hot again, with investors flipping property at the fastest pace in a decade. Yet behind their walls, that picture-perfect dream home could conceal a nightmare.
A flipped house is one that has been sold at least twice within one year. The eal estate site Trulia said more than six percent of last year’s home sales were flips—the most since before the financial crisis.
With flipped property soaring in popularity again, so are the risks associated with buying a lemon.
In the speed to fix-up a house and re-sell it at a profit, corners could be cut. Work could be completed without required permits, appliances or lighting could be installed without proper connections in the electrical panel.
In especially hot property markets, fixer-uppers that mask flaws are more prevalent. Because people are trying to turn around houses very quickly and if a market is hot, sometimes people forego the home inspection and that is never a good idea.
Some quick turnover homes have only had cosmetic fixes that mask mechanical or structural issues that even trained eyes may not be able to catch.
According to ASHI—which since 1976 has represented 8000 certified and vetted inspectors— a home Inspection is a professional, written opinion of a home. It is based on a visual evaluation and operational testing of the systems and components to determine current condition.