As you begin the search for homes for sale in the Green Bay area, you may come across what most people call a flipped house. This can be a great way to buy a house that is move-in ready, but there are some potential cons to consider, too.
Here's what you need to know before buying a flipped house in Green Bay.
What is a flipped house?
There are no technical designations that put a home in the "flipped house" category. Instead, this is a term coined to describe properties that were purchased by an investor, quickly renovated, and then "flipped" for profit shortly thereafter. A flipped house is one that was remodeled specifically to sell for profit.
You won't see a home advertised as a flipped house. Instead, to determine whether a property you are considering is a flip, look for clues like these:
When you look at the listing, you see that the home was purchased within the last year.
The most recent purchase or listing price is significantly less than the current listing price.
The seller is an LLC or corporation, and has multiple other properties on the market at the same time.
Strike up a conversation with neighbors when you go to a showing to learn more about the history of the home.
Remember, just because a home is a flip doesn't mean you should walk away. It is simply an indication that you should look carefully at the quality of the renovation and the true value of the property before moving forward.
Pros of Buying a Flipped House in Green Bay
There are some clear benefits of buying a flipped house, including:
There is no need to go through your own renovation process, as the home with already have brand new finishes in any renovated areas.
You can own a home that is move-in ready and feels brand new inside, while being located in an established neighborhood or surrounded by mature trees.
A flipped house provides the benefits of a remodeled home without having to live through the unpredictable timeline and expense of remodeling it yourself.
Flipped houses are often competitively priced, as investors want to quickly sell the property to move on to the next project. This might mean you get a killer deal on a newly renovated home.
You may be able to move in more quickly than with another home, if your financing allows for a shorter escrow period, as the home will be unoccupied and ready to close.
Cons of Buying a Flipped House in Green Bay
Before jumping into buying a flipped house, keep these risks in mind. While a flipped house can be a great way to buy the home you want, it pays to be skeptical and cautious. Some of the potential cons include:
Investors often prioritize cosmetic updates in the most noticeable areas, like kitchens and bathrooms, without addressing major needs under the surface. This might mean the home looks brand new but is in need of costly repairs in the less visible parts.
You might be paying for renovations that you will still want to replace because their are not your aesthetic preference. This is potentially a waste of money and bad for the environment.
Not all house flippers complete their renovations up to code. After you purchase the home, you would be responsible to bring it up to code if anything was not done correctly.
Tammy Emineth is a writer, blogger, and real estate marketing expert for over 15 years. As a former real estate agent, Tammy possesses the knowledge and expertise to produce content and relevant information about the real estate market and how to market real estate websites and brokerages.
