The Ethical Standards of Fix and Flips
A “fix and flip” occurs when a home buying service or real estate investor purchases a home, performs any necessary repairs and improvements, and then puts it back on the market for a quick sale. If you are looking for people who buy homes in Clarksville, TN, you want to be sure that you work with a reputable investor like the home buying specialists at Gateway House Buyers. It’s always better to work with ethical companies who will give you a fair valuation of your home and release it back into the market only after it has been thoroughly fixed.
Why Ethics Matter
There is a lot of value in buying houses to fix and resell. One online real estate marketplace claims that nearly 60 percent of users who bid on bank-owned properties plan to flip them shortly after purchasing them. This means there is a significant variance in the quality of fix and flips depending on who purchased the home with the intent to flip it. This commonly occurs at distress sales, which can be a result of a foreclosure or short sale, or an estate sale where the heirs are eager to dispose of the property without putting in work to fix it up.
Unfortunately, while fix and flips are legal in the United States, a few bad apples created a negative stigma surrounding this act after the housing crisis of 2007. A few highly publicized cases of fraud led to the general consensus that fix and flips are simply scams. Bad news tends to be big news, but the fix and flip market has surged anyway, and now, reputable companies like Gateway House Buyers are showing the rest of the world that fix and flips are not only legitimate, they offer a mutual benefit for the seller and the buyer.
Don’t Hide Problems, Fix Them
Fix and flip professionals are responsible for being forthcoming during home restoration and renovation. When a real estate investor sees a problem that won’t be noticed by a future homebuyer, they don’t hide it and proceed to market. Reputable home buyers address every issue including mold, leaks, crumbling foundation, broken trusses, fire damage, and more. If an investor is unequipped to handle the scope of a fix and flip, they have an ethical duty to reveal any lingering issues to future homebuyers.
Utilize a Seller’s Disclosure
A seller’s disclosure can be used to get more information about a piece of real estate from a seller. This is a common element in many real estate transactions because they help protect the buyer and the seller from any future legal action. If you opt to utilize a seller’s disclosure, you want to ensure that you have prepared a line of questions that will help reveal any possible issues with the home including leaks, fire damage, mold, etc.
Need To Sell Your House Fast?