Hundreds of homes within the Triangle are bought, refurbished and resold each month. This is a practice called “flipping,” and while it can bring in big bucks, it’s also a potential risk for homebuyers.
The average profit for Raleigh’s overturned home is $61,000, according to the latest data from real estate data firm ATTOM.
But there are growing complaints that flippers are cutting corners and inflating their profits.
When walls and floors are opened up during a major home remodel, inspectors can easily notice if something isn’t following the rules. However, if work is concealed without authorization or inspection, buyers may be forced to deal with potentially deadly hidden hazards.
“We live in an HGTV world where anyone can flip their house. I mean, that’s what they say on TV.
When you see a house transform in 30 minutes, you might think that anyone can flip a house.
“But you can’t believe what you see on TV all the time,” warned Wiesner.
“There are now more complaints about houses being turned over across the state, especially in rural areas of the state,” Wiesner told 5 On Your Side.
The North Carolina Realty Commission set the overall complaint record at 1,683.
“It’s the biggest year ever,” said Janet Torren, general counsel for the North Carolina Real Estate Commission.
Of course, the problem isn’t just with people watching the show and wanting to flip their house.
“I would say that the majority of remodeling complaints today are related to investors buying homes,” said Thoren.
But just because the house is flipped doesn’t mean it’s bad. They play an important role in the housing market.
“Demand can never be a problem, it’s rather supply, so fixing these homes can increase supply,” said Adam Colburn, owner of Oak and Arrow Home Solutions. I’m here.
His company just finished a house flip in Durham and spoke to 5 On Your Side about his process and how his company is trying to do these projects the right way.
Colburn says his company relies heavily on licensed general contractors to scrutinize workers.
“We bring in deals and get our bids on what’s done,” says Colburn. We need to make sure things are done right.”
Colburn says that doing the job right is the ultimate goal rather than making more money.
“We want to offer the highest quality products possible,” Colburn told 5 On Your Side.
Wiesner says there can be real dangers if people don’t follow these procedures.
For example, there is a house currently being renovated that is being investigated by the Licensing Board of General Contractors in North Carolina. A lot of new electrical wiring was done in the house, but none were permitted or inspected.
“Electrical work done without a permit or inspection may not have been done by a certified or licensed electrician and could burn down your home,” says Wiesner. said Mr. And closing those walls makes it harder to spot potential hazards.
“Someone is going to die,” Wiesner warned.
You don’t have to avoid properties just because they’re flipped, but there are steps you can take to make sure you’ve done the right thing.
- Check with your local inspection and permit office to make sure the permit has not just been taken out, it has been closed. In other words, the inspector approved that work was done on the code.
- If you have any questions, you can contact the inspector who approved the work.
- After you make the offer, Thoren says he will never give up testing.
These are things a real estate agent can help you with.