Here in San Diego, homes flipped by investors who used financing were roughly 56.4%*, and often times I am representing buyers who are purchasing homes within this category. My biggest concern is often the level of care done to complete the flip. I often see crooked electrical face plates, and I think if they’re willing to be so careless about something so easy to do correctly, what is behind these walls? Of course we have our inspection process to uncover any big issues, but the great news is that going into effect on July 1, 2024, sellers subject to the Transfer Disclosure Statement (TDS) who recently acquired title themselves within 18 months of accepting an offer to purchase must:

Disclose to Buyer any room additions, structural modifications, alterations, or repairs performed by a contractor.
Give Buyer the contractors’ names and contact info for projects of $500 or more
Give Buyer copies of permits obtained (or if Seller doesn’t have copies, give Buyer the contact information of contractor who has permit information).
Source: Assembly Bill 968

We are anticipating that the California Association of Realtors will update its Seller Property Questionnaire (SPQ) to include the new flipper disclosures, which is a great resource to a Buyer who is purchasing.

*According to PR Newswire

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