Obsidian Home Solutions believes the strong returns for home flippers or rehabbers demonstrates that there is still a need in this recovering real estate market for homes move-in ready.
Some blame the inability of first time home buyers to find entry level houses on flippers. A recent report from real estate website Trulia says that flippers buy a house under the market. They add the amenities homebuyers want, such as granite counters and under counter wine cabinets, stainless appliances, etc. They then sell the house at a higher price taking that house out of the pool of houses sought by those who want to use sweat equity to get into a cheap house. That’s a stretch, in my view.
Rehabbers are free to buy houses under the market like everyone else. Sure, we add to the competition to an underpriced market, but that’s just the free market. What flippers are more likely to do is provide a convenient buying place for homeowners under the gun to sell fast.
Flippers or real estate investors exist for homeowners who are going through a divorce who want to sell their house fast and move on. They don’t want to spend months locked into a house waiting for it to sell. Flippers or cash buyers are there for families who lost a family member and inherited a house. They might live someplace far away, and it’s too inconvenient and costly to fly back and forth to sell a house. They want to sell right away.
Flippers are there for families facing foreclosure and need to sell fast and maybe find a way to repair their credit. And flippers are there for homeowners who want to sell but have costly repairs to make. They want to sell as-is.
Finally, rehabbers are there for families who find that with the children out of the nest, the house is just too big. They want to downsize and stay in the same area. Or they want to sell and enjoy sunny weather all year round. They want to close fast and be on their way before the snow starts flying.
Flippers buy houses in neighborhoods that have been in decline, where crime is high. We reclaim neighborhoods that become great places to raise a family. When we say rehabbed to modern tastes, we mean rehabbed with today’s buyer in mind, who want open floor plans, decks, and two bathrooms.
BTW, if you are looking for a way to participate in Springfield real estate and reap higher returns than banks, give us a call.
Since our inception, we have been helping homeowners along with improving communities in every city in which we work.
We have extensive knowledge of the business, a network of resources, and years of expertise. Obsidian Home Solutions can assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their situations.