An issue I have run into this week in Santa Cruz area is that 90 day flip rule. Something to remember. It has come up twice for me this last week.
It’s very exciting to find a home that has been renovated and is basically “move-in-ready”. Many homes have been purchased by investors and then fixed and are being re-sold in a very short amount of time.
This is really important to know! Listen: if you have less than 20% down you most likely won’t be able to write an offer on a property until 90 days after the last sale date, especially if the list price has increased over 20%.
Furthermore, if you have 20% down or more many banks most likely will require two appraisals. That means extra costs to you and possible extra time.Some banks reimburse you for the second appraisal, some do not.
Of course all banks have their own rules about “flips”- but make sure you check on the last sale date if you suspect the home you have just fell for is a “fix-n-flip”. Your agent can help with that. Check with your lender as well to find out their particular rules.
90 days on the market is a long time nowadays…It’s very disappointing to fall in love with a home and realize you can’t write an offer.