It’s a simple question to ask any Realtor, and the answer is readily available.
Ready? Here goes:
“What’s the sales history on this house?”
Most Realtors already know the answer. In this market, with increasing regularity, we are seeing remodeled homes being bought, fixed up, and then resold.
This is a normal part of the market, but in recent years a part of this practice has come to be called the “Pump and Dump” after the old boiler room jargon referring to stocks.
If your prospective property is a “Pump and Dump” your Realtors reaction will inform you right away.
I suppose this rather perjorative phrase casts an overly wide net. I’ve seen many, many homes that have been turned into Gems! So it is with a measure of caution that we type this.
Make sure that when you offer on a newly renovated home, (Or a new home for that matter!) that you can review the Contractors License and Bond, and that you see evidence of both building permits and final inspections. In the unfortunate event of a claim, you’ll feel much more secure in your property knowing that you’ve already done the research.