A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Buyer Beware:
House Flipper warning
I was
reading today that Home flipping sales declined nationwide both
quarter-over-quarter and year-over-year, hitting their lowest level since the
second quarter of 2009.
This brings me to a buyer warning when it comes to purchasing a home that is
being flipped.
I remember a
few years ago myself and my partner at the time listed a home that was
re-modeled by a flipper. The home looked beautiful from first glance, but as I
started to go through the home I found many defects that were in need of
repair. The strangest part was that there were light switches that had nothing
connected to them. They seem to be there for looks alone. We ended up having
many of the defects repaired and then sold the home, but this situation is not
unusual for homes that have been flipped.
If you have
read any of my blogs you know that my business now is Property Management in
Orange County Ca. and I am also a California Licensed General Contractor that
has built Spec homes, so I understand the building industry and am a big fan of
builders in general. I always correct people who put down contractors, because most of the
time their complaints are do to unlicensed workers not licensed contractor and
here lies the problem with many house flippers.
Going back
to the home, that I sold, that was owned by a flipper. His sole purpose was to
buy the home, make it look good and sell it for as much money as possible.
Building or remodeling homes was not his passion and he had no care that the
people who bought his home will be satisfied.
I met a builder a few yeas ago in
Rancho Santa Fe California. This is a very affluent area near San Diego. He
built many spec homes in the area and always stayed in touch with the people who
bought his homes. Even when people needed their homes repaired they called him.
This was his passion and the homes he built were like his children, it is a
beautiful thing to see.
Many home
flippers are just like my old client, they have no passion for building they
just are looking for a way to make money. I am not against people making as
much money as they can. Every builder is in business to make money, but if you
don’t care that the home you build or re-model is a quality product and if you don’t care that the home you build or re-model is going
to be satisfactory to the buyer, then this is an ingredient for a disaster
and could be a money pit and years of legal issues for both parties.
My warning
for Home buyers who are thinking about buying a home from a flipper. Make sure
the flipper is a Licensed contractor or make sure the main investor is a licensed
contractor and has experience in the flipping business. Find out other homes
they have flipped and go talk to the buyers of the other homes. If people are
happy with the homes they bought they will be very happy to talk to you. Stay
away from the (LLC)limited liability company flippers, that says to me they are in the business quick and
will be out of the business quick. Remember guarantees are only as good as the
person or company who gives them.
Your home is
the largest and most important investment you may ever purchase, be very diligent
when purchasing any home but be extra suspicious of the home being sold by a
flipper. Think of it this way, you go to a neighborhood butcher shop to buy a
steak, that shop has been there for years and the butcher knows his customers
and wants to make sure they are satisfied, so they will come back. Then you buy
a steak from a man coming to your door selling steaks from his truck. Which
steak has a better chance of being a quality steak? The steak from the butcher,
that has been there selling steaks in the neighborhood for years, or the guy in
the truck who you will never see again?
As with
everything you purchase “Caveat Emptor “ buyer beware. Do your
due diligence and enjoy your new home.
A.D. Cantelmo Property Management
Our Business is Property Management in Orange County Ca.