Flipping is back in style. However, there was a downfall seen in the buying of flipped homes where the buyers bought a home and invested some money on their renovation and then sold them for higher prices making huge profits. There was fall in this trend after the market crashed back in 2008. There have been a few changes in the market now and they all seem to be in the favor of the house flipping market.
Reports from Trulia suggest that around 6 percent of the homes sold last year were flipped houses making huge profits. The real estate market considers a flipped home as the home which is sold twice in a year. Not only is this an increase in sales from previous years but has been one of the best years of the house flipping market.
Flipping has considerably increased in the following locations:
- Baltimore, Maryland
- Buffalo, New York
- Huntsville, Alabama
- New Orleans, Louisiana
- York-Hanover, Pennsylvania
House flippers have a strong return value from their investments made in these locations. Flippers nearly saw 80 percent or more increase in the value of the prices that they actually paid for these homes.
What has caused the increase?
The major reason for the increase seems to be the overflow of knowledge on house flipping through reality shows. People who watch these shows consider house flipping as a way to make some huge profits and find the market worth investing in.
However, there are a lot of charges that you need to take care of apart from just buying the house, there is the renovations cost, marketing costs, real estate agent commissions and everything that you need to take care of before you could actually go ahead and make the sale.
Statistics suggest that most of the flippers buy the home in cash so they are not in debt and are thinking rationally. The profits made is increasing because instead of just purchasing the home and sitting waiting for the price to rise, flippers are investing some money in its development.
Apart from the market growth rates, there are more people who want to be a real estate mogul and they see that it is really worth the money to invest and make such huge profits in return. Flipping has been a part of the real estate business and it is one of the best ways to make huge profits if you have got the right investments that are needed to be made on your side.