Iâ€™ve done flips myself, so I understand the mindset of the investors who are doing these. To be honest, in about 95% of the cases, flippers are actually helping the current housing market.
(1) They are buying distressed properties on the courthouse steps at wholesale prices. These are homes that typically you would not be able to purchase.
(2) Many of these homes sat for a long time as vacant short sales, then were foreclosed by the banks. Lawns are dead, carpets are trashed, they need paint and many are damaged by vandals and neglect.
(3) Instead of the bank throwing the property back on the market as an REO, flippers here in the Bay Area go in and completely remodel the properties. In most cases you can expect new kitchen cabinets, granite counters, new flooring, paint, refurbished bathrooms, new windows, good roofs, new landscaping and more.
(4) In most cases, they also deal with Section 1 damage â€“ something that is not possible if the sale is an REO or short sale.
I love selling flips and have sold many of them in the past twelve months to VERY happy buyers. After seeing dozens of forlorn REOs and short sales, buyers welcome a flip that has been upgraded. And keep in mind that professional flippers understand market value and wonâ€™t be putting homes on the market at artificially high prices. The property has to appraise â€“ if it doesnâ€™t, it wonâ€™t sell. If you feel a property is overpriced, simply move on. It will probably be there a while, then have a realistic price reduction. Or it may go off the market and be rented.
FHA has also recognized the value of flips â€“ they removed many of the restrictions they used to have in place to make it easier for FHA buyers to obtain these homes.
Read the following post for more information:
HUD Provides Flipping Relief: 3 Significant Buyer Benefits
There is no need to fight flips. They are actually helping restore the bay area economy â€“ ESPECIALLY in places like Antioch where record numbers of foreclosures devastated the housing market and caused untold numbers of homeowners to lose all their equity.
We have a number of flips in escrow right now â€¦ and the buyers canâ€™t wait to close escrow and move in to the wonderfully rehabbed homes.