With the market being favorable right now, it's tempting to decide to "flip a house" or buy a house, renovate it and sell it for a profit. Or maybe you want to take advantage of home prices and renovate a home for you to live in. This is a plan that can go very well except for one thing: home renovation cost. Be very careful of the renovations before you pay your down payment on your flipped house. Taking this "flipping" strategy, you would have your pick of homes, but houses are disappearing off the market in as little as 24 hours. Homes are listing for over their asking price.
Many flippers are in a hurry to get their property on the market. They want to recoup their investments. This sometimes causes some home renovators to cut corners, like skipping permits, hire inefficient contractors, not check for mold and have less than perfect electrical wiring and connections. They might not even do lead or pest inspections before listing their property.
Here are some ways to ensure your home is reasonably close to code and make your home flipping experience as positive as possible:
- Invest in a good home inspector. Find out how long he has been in business. What qualification does the home inspector have and is his past work experience.
- Home disclosures will tell you when upgrades were done to your home. Part of the closing documents of the home you are renovating should include disclosures of work completed on the home. Make sure you give this information to your home inspector.
- Go to the building department. Make sure you find all the permits that were pulled on this property and see who did any renovations: was it the homeowner or the contractor? If your home is located in an unincorporated area the county will have this information.
- Know your codes. Does your tile have asbestos or paint container lead? Older homes standards have changed since the 1950's. Make sure the home renovations you plan on doing are up-to-code and are fixing items that might be out of code.
Home renovation can be a stressful process but is definitely worth it in the long run- whether you plan on living in the house or "flipping" the house. Call Steve Cury Construction to ensure a home renovation done right. We have over 20 years experience with the homes here in Palm Beach and know what to expect and how to get things done. Call us today: (888) 240-1192.