How to tell when a flipped house is a flop

If you’re thinking about making a down payment on a house that’s been flipped, here are a few precautions you should take. You don’t want to find out months or years after moving into your dream house that the wiring isn’t up to code or that the basement has a serious mold problem.

• Confirm that the developer used a licensed contractor. Sometimes amateur real estate investors will try to fix up run-down houses themselves, often resulting in shoddy workmanship.

• Ask to see all building permits relating to the property and confirm that any upgrades to the house passed inspection. It’s important to confirm that renovations were done according to the building codes specified by your municipality.

• Hire professionals to inspect the house for termite damage as well as mold and water damage. It can be difficult to recognize these kinds of problems underneath the shiny new features installed to sell the house.

Newly renovated houses may be equipped with brand-new floors, fresh coats of paint and the latest appliances, but make sure to investigate potential risks. In some cases, the house’s like-new appearance may mask serious structural problems that the developer failed to address in the interest of turning a quick profit.