I am sure that you watch those house flipping shows like I do. It’s amazing what a little creativity and hard work can do. On the shows they take a rundown house that’s been abandoned and turn it into a picture perfect home.
The Houston housing market has been on fire the last couple of years and there are no signs of it letting up. In March, as single-family home sales and pricing rose while housing inventory grew. Most sales took place in the $250,000 to $499,999 range, followed by the larger and more luxurious homes in the $750,000+ range. Houston is considered to be one of the leading cities in America in terms of home renovation and restoration because of the booming economy and beautiful suburbs like The Woodlands, Sugar Land, Katy, and Pearland.
But with all of those great deals on the market there is an even greater risk that there could be some hidden surprises in store for the new homeowners. CNBC’s Diana Olick recently reported on the real goings on in many home flips. Investors looking for a quick buck and TV show’s that make it look fun and easy are some of the reasons that people are flipping houses like its 2006 again.
While some well-intentioned flippers modernizing older homes with the latest building materials restoring diamonds in the rough to their past glories others are fixing up properties that have many issues while ignoring the small details with electrical wiring and structural design that could turn into a nightmare. Only after the new homeowners arrive and move in do they get a visit from the municipal inspector and find out that their homes are not up to code.
Homeowners looking to downsize after their children leave trade in the suburbs for a downtown flipped home that had been fully renovated. They thought that they were getting good as new but they really bought a lot of problems when the housing inspector came around 6 months later in the form of work that was performed without a permit.
Homeowners are encouraged to get an inspection when buying a flipped home. How else would they know if there are any pests, chimney, or structural problems? There are items that are commonly found during inspections. In fact we have walked into flipped homes to find significant chimney issues that could have been resolved if we had been called in earlier. Chimney repairs are easier to perform and homeowners mind the dirt less when the interior of the home hasn’t been remodeled yet.