Remodels, upgrades and flipped homes are supposed to get more attention this year. That means stacking a record year on top of a record year.  

That’s good news on some fronts. But it also raises a warning flag because the number of complaints about poor–quality work complaints – and sometimes outright fraud – are unfortunately becoming more common in this part of the housing market. 

Flips traditionally account for about one out of every 10 local sales in the years of ATTOM Data Solutions analysis. And the average prices were attractive to buyers looking for a break at high prices. Here’s the latest price averages flip prices. The latest report shows the median flipped price was $272,000 in the Johnson City metro area and $225,000 in the Kingsport-Bristol metro area.  

But you don’t have to look hard to see that a flip or major upgrade can be not-so-good of a deal. Just check out the complaints in the media or on social media. There are even some high-profile legal action examples. 

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 have made flips a romantic adventure to fantastic changes and real estate riches. But much – or most – of what is seen on these programs is oversimplified or scripted. It may be called reality TV, but much of it is entertainment, not reality. 

There’s no doubt about it. Buying a flip or contracting for a major upgrade can be a smart move. But it involves extra due diligence to ensure you’re getting the deal you hope you’re getting. 

Here are some pointers from local flippers and Realtors® who have seen the good, the bad and the ugly of this side of the market. Local building officials mirror the need for caution. They say they are seeing a record number of flips and upgrades with code violations and other issues. Kingsport has added a portal to its website, where consumers can type in an address and see what permits have been issued for it. It can be accessed at https://king-trk.aspgov.com/eTRAKiT/ 

Here are some things real estate insiders say are important for consumers to put on their flip sale or remodeling punch list. 

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. Are they satisfied, or do they have an issue? The same goes for a contractor bidding on an upgrade. 

If it’s a flip, get a list of what has been done. With it, you can get a hands-on impression of the quality of the work. 

Buyers should also hire an independent home inspector. A licensed, accredited, and insured inspector will go over the property and give you an itemized list of the findings. 

Flipped homes and upgrades 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.