Are you buying a flipped home from an investor? Then you should know you need to protect yourself!
Investors who buy homes after a foreclosure and fix them up is a popular real estate investment strategy in South Florida. If done properly, this can work out very well and can result in a great profit for the investor and a reasonably priced, newly-renovated home for the buyer.
However, the buyer needs to be extra cautious and take the dangers of buying a foreclosed property and construction in general.
The first thing you should do is to review the title insurance commitment and make sure that the foreclosure was performed properly and all issues have been cleared up. Go to the designated city and county offices to verify if all permits were properly obtained and closed out, both from the latest renovation and from the previous owners. Make sure there are no code enforcement issues and that the homeowners’ association fees are all paid up and the renovations are all in compliance with community guidelines.
If there are any additions to the home then you need to pay closer attention to those and make sure they are all up to code. After the renovation has been completed, ask for proof that the contractors and subcontractors were paid in full.
Afterwards, have the property inspected by an inspector and make sure all renovations were properly done with quality materials and no problems were given a Band-Aid fix. If the home sat empty for months during the foreclosure, it’s best to watch for mold. Asking the neighbors questions regarding the home’s history is also a good way to single out any potential problem areas.
If you are looking to invest in South Florida real estate, trust in the expertise of the Great Florida Homes Team!
Tags: flipping houses in South Florida, Great Florida Home, Joy Carter, south florida economy, South florida home renovations, south florida news, south florida real estate, south florida real estate update