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Buying a home from an investor isn’t necessarily a bad deal. In fact, as long as all the improvements have been done correctly, there may even be some attractive benefits. For instance, they likely took care of what the house for sale needed, which may offset a slightly higher price. However, not all investors are so honest, so be prepared to ask your real estate agent some questions before making an offer on a flipped home.

What to Inquire About Before Buying From an Investor

Do the Investors Have a History?

Your real estate agent can find out whether the investor with the house for sale has flipped other homes in the past. If so, find out who the early buyers were and get in touch to find out whether they were satisfied with the purchase. If the house-flipper just made cosmetic improvements to get a higher sale price before, chances are they might try again.

Did They Use Quality Materials?

house for saleTo save money, some real estate investors use low-quality materials that must be replaced again in a few years. In fact, the seller may not finish some areas of the house and, instead, offer you a discount to cover the price of cosmetic finishes. This might sound good, but ensure it’s enough to pay for the materials you’ll want.

What Changes Were Made?

Even if your state laws don’t require sellers to disclose all the improvements they made, you can request a written description through your real estate agent. If the sellers hesitate or refuse to offer a full disclosure, you may want to keep looking.

Was the Work Done by Professionals?

Look under the sink to see whether old plumbing is grafted into new pipes, and open the electrical panel to ensure the work looks professional. If you see signs of a DIY project, like gaps between cabinets and poorly painted corners, there are probably other problems you can’t spot.

How Old Is the HVAC System?

Although the interior of the house may look perfect, many investors neglect the most expensive systems in the house. If the heater or air conditioning unit is near the end of its life, negotiate a discount to pay for a replacement.

 

If you’re looking for your dream home in the Minneapolis, MN, area, you can rely on EXIT Realty Nexus and their team of industry professionals to narrow down your options and find a place you’ll love. With the best training and technological tools in the industry, they’ll make buying your next home an exciting adventure. Visit their website now to start browsing houses for sale, get more real estate advice on Facebook, or call (612) 281-1033 to speak to an agent today.

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