Flipping An Investment Property? An Inspection Can Make or Break Your Deal

Since the start of the $ 8,000 tax credit and its extension to the end of April 201o, the flipping market has quite popular in the Philadelphia area.  Some realtors and other investors that I’ve talked to over the past few weeks, have expressed that first time home buyers that are qualified for the tax credit, are finding it difficult to find desirable properties.

It’s that home price range between $ 80,000 and $ 200,000 where buyers are seeking homes that they would like to move into without doing any work to the homes at all.  Homes for sale in “move-in condition” seem to be just a bit difficult to find.

Also, advice to the investor that is flipping the home, do a home inspection when your property hits the market.  Home inspections can often make or break a deal.  If possible sellers should have one done ahead of time so any additional repairs can be made and a home can be in its best possible condition.  However, often a seller does not do a home inspection first and is caught off guard by a list of repairs presented in the due diligence portion of the contract process.

Also, make sure that your home inspector is a member of

The most common home ailments that show up in the home inspection process are:

• Faulty electrical wiring
• Roof damage
• Plumbing issues
• Poor drainage

Yes, these problems can occur in recently rehabbed homes.  If you and your contractor have done a thorough rehab, then your flip investment property should come through with flying colors.   These are issues that can add up to a potential home buyer walking away if a seller is unable to step up and make the repairs or commit the money to make the repairs. 

Examine these aspects of your home yourself, if you and your contractor know everything is in good condition and the work that has been done to your home has been completed by your contractor then you can rest easy, otherwise be prepared to make additional repairs in order to sell your home.