A flipper house is what you call a house that is sold by flippers.  Flippers are investors who buy a home, preferably in its original condition, at a price they hope is under market value in a desirable neighborhood.  And why do they have high hopes as that?  –Because they are going to remodel the home for the least budget as possible and also as quickly as possible to make it as good-looking as new.  They are then going to sell or flip it to an unsuspecting buyer for a bigger price.

Although this seems to be big and easy money for investors, remodeling a fixer and turning it over for a profit is a legal and accepted way to make money in real estate.  But you better be careful because not all flipper ways are legal.

Most investors may be honest, but as a buyer, you should still be precautious in buying flipper homes.  Make sure that the price you will be paying is in line with the comparable sales in the neighborhood.  If so, then it must be quite worth it to buy a flipper home with spanking new add-ons and appliances.  Just think that the extra money you will have paid goes to the service fee of investors who meticulously shopped for your home’s furniture and repair.

But just to be sure that you won’t be getting yourself in a losing deal, you might want to consider these guidelines:

Hire Your Own Agent. Hire a buyer’s broker to negotiate for you. Sellers generally pay your agent’s fee. A buyer’s broker will look out for your interests and represent you, not the seller.

Get a Home Inspection. Ask the home inspector to thoroughly investigate the plumbing, heating, electrical and mechanical apparatus in the home, including structural. Take along a home inspection checklist to verify nothing was overlooked.

Hire Experts Recommended by the Home Inspector. If the inspector suggests you obtain other reports such as a roof inspection, sewer inspection, HVAC report, chimney inspection, structural engineering report or pest inspection, follow the home inspector’s advice.

Carefully Inspect for Quality of Workmanship. Look for signs that the flipper cut corners or tried to save money by using inferior products or materials. Note any defects you find and ask for repairs in the purchase contract.

Check with the County for Permits. Not pulling a permit for work requiring a permit is common and not necessarily a deal killer. However, there is no guarantee that the work was performed according to code if the flipper didn’t obtain a permit.

Get a Home Warranty. With a home warranty plan, buyers are covered for one year in the event a system fails, electrical malfunctions or plumbing leaks. Home warranty companies charge a service call fee, but the repairs are free.