Seller resists basement inspection on $455,000 home flip with a past $10,000 water claim

After one homebuyer offered $455,000 on a single-family home, they quickly learned it had been flipped the month before for $100,000 less. 

With the inspection window closing quickly, the buyer went to Reddit's r/FirstTimeHomeBuyer to ask whether they could negotiate on items that stood out during the inspection.

Here's what to know

In the Reddit thread, the original poster said the seller was the listing agent's husband and that the two appeared to run a house-flipping business. After the earlier off-market purchase for $340,000, the home was listed for $440,000, and the buyer's $455,000 offer was accepted.

The OP also said the sellers had owned the home for only about two months, so there was no condition report. The buyer described the work done during that period as mostly cosmetic, including paint, flooring, counter and vanity tops, and an electrical panel update.

Issues noted after the inspection included vermiculite in the attic, bathroom vents that "do not appear to be ducted at all" into the attic, and chimney brick spalling.

The buyer also raised basement concerns, including one sump pump with unusual drain-tile outlets packed with grates and rocks, another that appeared damaged, and basement floor water stains despite only "minimal signs of water damage."

What added to the buyer's unease was that the home appeared to have received only limited updates, not a major overhaul, even as the price rose over $100,000.

For the buyer, the stakes were simple: "I am dropping almost half a million on a home I might call forever so I want to proceed with caution."

In the comments, one Redditor said the hesitation around the additional inspection was the most significant warning sign: "The agent dragging her feet on a simple permission slip for your sewer inspection is the biggest tell here, she knows something's going to come back ugly and she's trying to run out your clock."

Others agreed that the OP should worry about the seller stalling on inspections and making various claims.

At this stage, the buyer had already paid for a standard inspection, reviewed the property's brief ownership history, and uncovered the prior owner's $10,000 water-damage insurance claim. Overall, commenters urged caution because of these red flags.

Where can I learn more?

These stories cover similar red flags that can pop up when buyers run into water damage, rushed renovations, or resistance to extra inspections. 

• On a Southeast ranch, basement mold surfaced during escrow, and commenters urged the buyer to walk away.

• In a renovated house, a 999 moisture reading in drywall pushed buyers toward blunt advice.

• At a flipped home, an inspector spotted a hidden sewer line that looked abandoned.

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