Buying a Flipped House: Key Red Flags and How to Avoid Costly Mistakes

Buying a flipped house can lead to tens of thousands of dollars in unexpected repairs if crucial due diligence is skipped. Based on a firsthand account and expert insights, the core lesson is that a home’s pristine surface can hide significant structural and mechanical defects. The most critical step is to go beyond a standard home inspection, especially for a recently renovated property, to avoid the financial pitfalls of a poorly executed flip.

What Are the Red Flags of a Bad Flip Before a Viewing?

The first warning signs often appear in the property’s listing and purchase history. A key indicator is a short ownership period. If a home was purchased and relisted just a few months later, it was likely flipped. Another major red flag is an unusually long time on the market (Days on Market or DOM). As Jameson Tyler Drew, a developer and president of Anubis Properties, explains, "If the house doesn't look like a total wreck, is decently priced, but has been on the market for 90-plus days, that's a red flag that something in or around the house is wrong."

• Purchase History: Check public records for how long the previous owner held the title.
• Days on Market: A high DOM for a seemingly attractive home suggests other buyers have identified hidden issues.

What Should You Closely Inspect During a Walk-Through?

While new paint and modern appliances are appealing, it's essential to examine areas flippers may have overlooked. Focus on the foundation, bathrooms, and systems rather than surface-level cosmetics.

• Exterior Foundation: Look for disintegrating concrete, sagging stucco, or diagonal cracks in exterior walls. These can signal expensive foundation issues that are costly to repair.
• Bathroom Tilework: "If the tile work is starting to crack or there are gaps between the floor and walls, I usually prepare my clients for the worst," advises Drew. Poor tiling can indicate a rushed job and underlying problems.
• Systems over Style: Note the age and condition of the HVAC, water heater, and electrical panels. These are expensive to replace and are often minimally addressed in a flip.

Is a Standard Home Inspection Enough for a Flipped Property?

For a flipped home, a standard inspection is often insufficient. The real issue may be that you need the right professional for the job. Bradley Wilson, a licensed real estate salesperson, recommends a more rigorous alternative. "There are qualified home inspectors who offer what is called a 'Construction Defect Inspection,'" he explains. "This is a much more in-depth inspection, which costs two to three times that of a typical inspection, but is well worth the money." This specialized inspection delves into the construction's "nuts and bolts" and can determine if you need to hire an engineer, plumber, or electrician for a further specialist review.

What Due Diligence Can You Perform Yourself?

If hiring additional professionals is not feasible, you can conduct your own legwork to uncover potential problems.

• Research the Contractors: If you know the names of the companies that worked on the flip, look them up online and check their reviews on the Better Business Bureau website.
• Check Building Permits: Contact the local municipal building department to request the building permits for the property address. "If the square footage or property description for the city doesn't match what's in the MLS listing, you might want to move on," says Drew. Unpermitted work is a significant liability.

While a flipped home can be appealing, the potential for hidden defects is high. The most practical advice is to invest in a specialized Construction Defect Inspection. Always verify building permits and thoroughly research the contractors involved. Focus your scrutiny on the home's fundamental systems and structure, not just its cosmetic updates. By taking these steps, you can make a more informed decision and protect yourself from the financial burden of a bad flip.