There’s no way around the fact that things are tough for a first-time homebuyer or someone shopping the affordable market. And yes, there are affordable home out there. In fact, 38% of the 692 homes sold in August were in the affordable price range – $100K to $225,000. 

Although today’s market is getting a little more buyer friendly, the affordable market is often more competitive than the move-up or luxury markets. That’s why some buyers are looking at flips. While it’s a fact that flips are attractive, buying one requires extra due diligence.  

The first thing we should establish is just what is a flip? 

Basically, it’s a property that an entrepreneur has bought, upgraded, and put back on the market. Reality TV shows made flips famous; however, some real-world flips don’t live up to the entertainment value of reality TV. 

Flips are a niche market in the Tri-Cities region – an important niche. They account for about 10% of total sales and the average sales price is in or just above the affordable zone. During the second quarter, the average price of one of the 111 flips sold in the Kingsport-Bristol metro area was $215,000. The average for one of the 61 Johnson City metro area flips was slightly higher – $261,000. 

There’s no doubt about it. Buying a flipped home can be a smart move. But it involves extra effort to ensure you’re getting the deal you hope you’re getting.  

Local building officials emphasize the need for caution because they are seeing a record number of flips with code and other issues. Kingsport has added a portal to its website, where people type in an address and see every permit that has been issued for a property and its status. 

Here are some pointers from local flippers and Realtors® who have seen the best of the good flips and the worst of the bad ones. 

Does the seller have a history as a flipper? Ask for the names of people who bought a home from the flipper. Talk to them.  

Get a list of what has been done. With it, you can eyeball the improvements, open and shut the doors, and get a hands-on impression of the quality of the work. 

The “what has been done” list is also the gateway to check that any necessary permits and or inspections were made. And don’t overlook the need to confirm that the folks who did the work had any or all of the licenses required. The seller should have copies – many do because it moves the process along, and they’re interested in selling the property as quickly as possible to recoup their investment. 

Buyers should also hire an independent home inspector. A licensed and insured inspector will go over the property and give you an itemized list of the findings. And if there’s anything even remotely suspicious, don’t hesitate to seek the next level of expert to check out the work. 

Flipped homes are an important part of the local housing market because they take homes where maintenance has been neglected, ones that are dated and need a facelift – or more – and get them back into the housing inventory. A good flip can mean a good deal. But a poor flip can be a money pit for buyers who don’t do some extra due diligence.