3 Facts You Need To Know About The Homeflipping Craze

Dated: 08/29/2017

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Have you heard about the home-flipping craze? Home flipping is usually defined as buying a home and then reselling it soon after for a higher price.10 years ago, it was a mainstay of the real estate boom that led to the financial crash.After some years of lower activity, it's back in full force, thanks in part to popular TV shows such as "Flip or Flop" and "Flipping the Block."If you're curious about home flipping, here are three facts you should know right now: 1. Home flipping is more profitable than ever. A recent Waco home that appeared on HGTV's show "Fixer Upper" was originally bought for $28,000. It was thoroughly renovated, and is now being listed for $950,000, over 30 times its original price. While not all flipped homes provide such extreme results, home flipping as a whole is more profitable than ever. In 2016, the median flipped home sold for $189,900, $62,624 over the median purchase price of $127,276.That's a 49.2% return, the most profitable return since 2000, the first year for which such data is available. 2. Home flipping is caused by different factors than 10 years ago10 years ago, many flipped homes were speculations. In other words, investors would buy a home and then just wait, hoping that the price would go up so they could sell. Today, more home flips involve value-added improvements, such as bathroom or kitchen remodeling projects. In fact, the current flipping trend appears to be a positive response to current market conditions, such as the overall shortage of homes for sale, a lack of new construction, and a steady rise in home prices. 3. Home flipping affects ALL home buyers and sellersIf you're a buyer, you can clearly benefit from the home-flipping craze. Flipped homes are available at all price ranges, from entry-level to luxury homes.

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Pires Team

Broker Associate (14 years experience) Specialties: Buyer's Agent, Listing Agent, Relocation, Consulting Everything we do, we believe in helping families and individuals achieve their goal....

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