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.
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