Can you believe it’s been nearly 10 years since the housing market blow-up of 2008? It seems like just yesterday when investors were snapping up foreclosed homes left and right and biding their time for the market to swing back. Buy low and sell high, right? Well, over the past year, flipping real estate has made a comeback, but not in the same way.
Ten years ago, flipping homes was more like the stock market. You were merely buying something and waiting for the price to increase. Which, in most cases, in inevitably did. However, here in 2017, flipping requires a little more elbow grease before you see a return on profits.
Flipping real estate has evolved from a buy-and-wait game to buying and strategically upgrading key areas of the home to see the most increase in profits. Maybe it’s adding another bedroom, kitchen remodel, building a garage, whatever the market is asking for at that time and then selling for the biggest buck.
The flipping market has seen a 6% increase in flipping homes this year, and normally that would make economist nervous, but since it isn’t just about rock-bottom prices as much as creating a new product for a different type of demand, things should be okay in the real estate market.
However, like we always say, there’s more to flipping real estate then meets the eye. That’s why we work hand-in-hand with you to ensure you understand what you’re getting yourself into.
Flipping is a risky business,” Trulia’s Chief Economist Ralph McLaughlin told CNBC’s “On the Money” recently. “If you buy a home that needs a lot of work or you didn’t do due diligence you should have and there’s some big ticket items you didn’t anticipate maybe like a foundation that needs repair or new plumbing or new roofing , those things can take a lot of the profit margins off of that flip.”