10 Warning Signs That Someone Incompetent (or Unethical) Is Flipping a House
If you’re looking for a new home, chances are you’ve visited a few “flipped” homes—properties that were recently purchased, quickly renovated, and just as quickly put back on the market. Even in the current real estate crisis, home flipping remains a popular business model, with 67,817 homes sold in the first quarter of 2024, accounting for nearly 9% of all homes sold during that period.
Flipping is popular because it can be very profitable, generating an average income of $73,492 per project. But those profits depend on quick and efficient upgrades, and some flippers may push their limits and end up cutting corners, while others may simply be out to rip you off by trying to cover up some completely shoddy work.
In any case, there are some common aspects of any renovation that may indicate incompetent or unethical work. When inspecting a home that you suspect is a scam, check for these red flags.
Glued sinks
Typically, an undermount kitchen sink is installed using a combination of adhesive and metal clamps to hold it in place. Sometimes a sink is installed using just adhesive if the clamps aren’t absolutely necessary and the installer is worried about the countertop cracking or not having enough room to attach the clamps properly, but either way they usually use a powerful, professional-grade adhesive.
On the other hand, an unethical home flipper can use any old silicone-based adhesive to glue the sink into place, skipping the clamps simply to save time and labor. The sink will hold up for a while and then suddenly fall over – probably when it’s full of dirty dishes. When checking an overturned kitchen, open the cabinet under the sink and look for metal support clips. If you don’t see them, it could be a sign that the flipper either didn’t know what he needed or intentionally missed a step.
Fans that don’t exhaust air anywhere
Ventilation and exhaust fans are typically found in bathrooms, above ovens, and other places where ventilation is required and need to be vented outside, but they can simply be attached to the ceiling and connected without any connection to external ventilation . In other words, they will release steam from the shower into the ceiling, where it can slowly promote mold and damage to the wood frame of your home. It’s worth making sure that all exhaust fans are venting properly and not just getting sucked into cavities behind drywall.
Painted baths
If the flipper’s home has a unique, classic bathtub—or the flipper wants to save a few dollars on a renovation—they may decide to refinish the tub rather than replace it. In theory, this is fine, since bathtubs can certainly be repaired and last for many years – as long as the work is done by a professional. In fact, refinishing a bathtub is not easy , since it must withstand almost constant exposure to water. Even successful DIY renovation projects usually only last a few years.
To refinish a bathtub, it must be properly cleaned, stained and prepared. If the flipper is just painting the bathtub, it may look fine while you walk around, but will peel off almost as soon as you start using it. In an upside down house, look closely at the planters. Look for small cracks, stains around gutters and plumbing fixtures, and blisters in trim. Ask questions if you see any signs of undisclosed repair work.
Updated outlets that hide old wiring
The easiest way to save money on flipping a house is to leave all the hidden things – plumbing and electrical – untouched and simply cover them with new fixtures. An unethical flipper may replace old, ungrounded outlets with new, modern ones and simply fail to connect the ground – or, worse, connect the ground to the neutral wire (known as a “counterfeit” ground). This may be dangerous, but will not cause an error when testing the outlet. It’s worth unscrewing a few outlets and taking a quick look at what’s going on in the walls – if the outlets are new but the wiring is old, be suspicious and consider getting an electrician to take a look during the inspection process.
Hidden floor damage
One trick that desperate flippers will try is to simply cover up the problems with new flooring. Flooring is expensive, and you can put carpet or vinyl flooring over damaged wood, cracked tiles, or other problems. Fresh carpet or boards will look good, and you may not spend enough time on them to notice deeper problems until after closing. Another trick flippers sometimes use is to rip off the bad flooring and throw cheap flooring over the damaged subfloor to save some time and money.
There are a few signs you can look for that a cheap new floor is hiding a big old problem:
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Different floor heights. If you are constantly walking up and down as you go from room to room, this could be a sign that the old floors have just been filled in.
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Sagging and soft spots. If the new tiles already have cracks or if parts of the floor feel soft when you step on them, this may indicate that the new floor was installed over a damaged floor or that the subfloor is rotten.
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Spaces . If new vinyl planks are peeling, it likely means a poor installation and may also be a sign that the floor underneath the vinyl is damaged and uneven.
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Unexpected carpet. Is there only one room in the house that has new carpet or other flooring? Be suspicious and see if you can look underneath it.
Free finishing
When the turnaround time runs out, the trimming job usually suffers because it is the last step in the remodel. If you walk into the kitchen and notice that the toe tabs are missing or the house has no door trim, you’ll immediately become concerned, so some flippers will stick this trim on in a quick and cheap way – like double-sided tape, caulk, or any old glue. It will look fine for a while, but moisture in the kitchen or bathroom will eventually cause it to simply come off. When looking at a renovated kitchen in an upside down house, it’s worth giving it a little tug on the trim. If it has been installed correctly, you will not be able to move it out of place without much effort.
No sealant
Similarly, carefully inspect the kitchen and bathrooms. In particular, pay attention to the sealant or lack thereof. Caulking is usually one of the last steps when completing a bath or kitchen remodel, and you may not notice you missed it if you’re not looking for it. Any “change in plane” (where horizontal and vertical surfaces meet) or gaps should be sealed with a suitable sealant. Otherwise, moisture, crumbs, and other debris will get between and inside your items, leading to rot, mold, and other problems.
Unconnected HVAC vents
As with fans, one way an unethical (or hasty, inexperienced) home flipper might try to slip past is by skipping an important step associated with central heating and cooling of a home: they might install vent and return ducts for the system and never connect them. Everything looks good and when you turn on the air conditioner it comes on but the air never gets into your rooms. During a walk-through or inspection, check the system to ensure air is flowing.
Poorly placed gutters
If your upside down home has a new roof, pay attention to the location of the gutters. Installing your roof yourself or hiring subcontractors instead of using a reputable roofing company can rush through the installation of your gutters, leading to situations where your gutters leak water throughout your home or directly onto your windows and doors. This is obviously the exact opposite of the purpose of gutters, but the bug won’t notice you unless it’s raining heavily, so try to inspect the house in a variety of weather conditions.
Hidden pests
You can imagine the horror that desperate home flippers feel when they discover termite or carpenter ant damage in the home they just bought and they don’t have the budget for thorough treatment. Signs of termites and other pests can be easily hidden—paint is often all you need to hide minor termite damage for a few weeks, enough to pass an inspection—and home inspectors aren’t always thorough and may not look for fresh paint or move heavy furniture to see what might be hidden.
If only one part of the house has recently been painted, take a closer look at it. If the area under the paint is rough and damaged, it could be an attempt to hide a civilization of creatures that the flipper didn’t know how to banish. You can also look for insect droppings (some termites leave droppings that look like grains of rice or sesame seeds), piles of sawdust, skins or eggs, as well as traps and poisons hidden in cabinets or under appliances.