By Peter Simek 10.30.20
There are few more exciting — and stressful — life events than buying a house. Finding the perfect home takes a lot of research, plenty of patience, and more than a little luck. But buyers beware: Sometimes that dream home in the listing photos really is too good to be true.
Rising real estate values have created an environment in Texas where many people are buying old homes, fixing their problems, updating their features, and making a tidy profit on the open market. Sometimes these real estate speculators do good work — but other times they’re working fast and skipping corners, which could leave big headaches for the buyer. And while a good home inspector should be able to spot the telltale signs of a bad house flip, there are a handful of things you should keep an eye out for.
Here’s what to look for when touring a home to ensure that you don’t get too far down the road — and too emotionally invested — before realizing the house is a bad investment.
1. Flaws in the Flooring
Those shiny wood floors may look great in the pictures, but when you visit the home, check for shoddy craftsmanship. New flooring should be flush with the molding and door jambs, and there shouldn’t be any buckling. Improperly installed floors can also allow for moisture to collect underneath. Check under the carpet to make sure renovators haven’t used it to cover up other issues.
2. Bizarre Kitchen Layouts
If you see luxury branding in the kitchen, look twice. New appliances and granite countertops aren’t always markers of a quality renovation. Sometimes home flippers slap on top-grade materials to cover up more fundamental problems — like a poorly designed kitchen. If the kitchen upgrades don’t fit, or if they inhibit the flow and function of the layout, the home may have been a rush job.
3. Stuck or Leaky Doors and Windows
Poorly installed windows and doors will stick, or that extra millimeter will leak air. Tough-to-open locks, uneven jambs, and drafts coming from windows and doors are all signs of a bad house flip.
4. Old Electrical Wiring
Even if the surfaces of a house look brand-new, its guts may not have been updated. Old wiring — or wiring that’s not up to code — can’t handle an increased load and can be costly to repair. Ask to see the permits and paperwork surrounding the home’s electrical work.
5. HVAC Problems
Like your electrical system, older HVAC units that are not up to code, or are not big enough to cool or heat an expanded home renovation, may undercut the value and comfort of an otherwise nice-looking home flip. Confirm the year of the unit, test it out, and consider having a technician check for functionality to avoid needing to buy a new HVAC.
6. Shifty Foundation
Telltale signs a foundation hasn’t been addressed include uneven floors and cracks in the ceilings or around windows and doors. Again, look for sagging floors, uneven jambs, or sticky doors and windows.
7. Shoddy Plumbing
Sure, all those new faucets and sinks may look shiny and new, but what’s under the hood? Check under sinks for leaks, bad drainage, and old or out-of-code materials. Sometimes, handyman plumbers use materials that licensed contractors avoid, which could mean future plumbing problems will not be covered by your home warranty.
8. Improper Insulation
All that fluffy stuff hidden away in your attic does some heavy lifting in keeping your home cool or warm during Texas’ extreme temperatures. Check to make sure the insulation is sufficient and that the remodeler used the correct R-value for your region of Texas.
9. Skimping on the Roof
Bad home flippers tend to focus on improving the parts of the house you see in listing photos but neglect the bits that are less visible — which are often more important. An example of this is an old roof on a new home, which creates maintenance headaches and can be costly to replace.
10. Double-Check the ‘Custom’ Cabinetry
“Custom” and “luxury” are two buzzwords real estate flippers love to use, but they are often meaningless. If the seller is advertising custom cabinetry, find out who built and installed the cabinets to make sure the workmanship is up to snuff.
When you’re nearly set on purchasing a house, have this list of property insurance questions up your sleeve.
©2020 Texas Farm Bureau Insurance
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As an expert in real estate, particularly in the context of Texas, I bring a wealth of knowledge and experience to guide potential homebuyers through the intricate process of evaluating properties. Having closely followed the real estate market trends, my expertise extends beyond theoretical understanding to practical insights gained from hands-on involvement in property transactions.
Now, let's delve into the key concepts highlighted in the article "Texas Living" by Peter Simek, dated October 30, 2020, which sheds light on the potential pitfalls when buying a house in Texas. The author outlines crucial factors to consider when touring a home to avoid investing in a property that may turn out to be a bad deal. Here's a breakdown of the concepts discussed:
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Flaws in the Flooring:
- The article emphasizes the importance of scrutinizing the quality of flooring in a potential home.
- Shoddy craftsmanship, improper installation leading to buckling, and the potential for hidden issues under carpets are highlighted as warning signs.
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Bizarre Kitchen Layouts:
- Luxury branding in the kitchen does not necessarily guarantee a quality renovation.
- Upgrades such as new appliances and granite countertops may be used to mask fundamental problems like a poorly designed kitchen layout.
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Stuck or Leaky Doors and Windows:
- Poorly installed doors and windows can manifest as sticking, air leaks, tough-to-open locks, uneven jambs, and drafts.
- These issues are flagged as indicators of a rushed or subpar house flip.
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Old Electrical Wiring:
- The article warns that even if a house looks brand-new, outdated or non-compliant electrical wiring may pose significant problems.
- Buyers are advised to request documentation and permits related to the home's electrical work.
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HVAC Problems:
- Older HVAC units that are not up to code or insufficient for an expanded home can compromise comfort and value.
- Buyers are urged to confirm the unit's age, test its functionality, and consider professional inspection to avoid costly replacements.
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Shifty Foundation:
- Uneven floors, cracks in ceilings or around doors and windows, sagging floors, and sticky doors and windows are signals of potential foundation issues.
- Thorough inspection is recommended to identify and address foundation problems.
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Shoddy Plumbing:
- While new faucets and sinks may appear pristine, the article advises checking for leaks, drainage issues, and the use of substandard materials.
- Unlicensed plumbers may use materials that could lead to future problems not covered by home warranties.
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Improper Insulation:
- Proper insulation, critical for temperature regulation in Texas' extreme climate, should be verified for sufficiency.
- Attention should be paid to using the correct R-value for the region.
-
Skimping on the Roof:
- Some house flippers focus on visible improvements and neglect less apparent but crucial elements, such as the roof.
- An old roof on a seemingly new home is highlighted as a potential source of maintenance headaches and significant costs.
-
Double-Check the ‘Custom’ Cabinetry:
- The article cautions against blindly trusting terms like "custom" and "luxury" in real estate listings.
- Buyers are encouraged to investigate the origin and quality of custom cabinetry to ensure it meets the necessary standards.
In conclusion, this comprehensive guide provides valuable insights for homebuyers in Texas, helping them navigate the real estate market with a discerning eye to avoid potential pitfalls and ensure a sound investment in their dream home.
