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It's my pet peeve to see so many people and investment companies buying old houses, pretending to renovate them by painting over mildew and bugs, then they list it for double what it sold for a year earlier or they rent an unsafe house out to a poor tennant who can't get into a decent legit apartment rental.
What gives? I consider myself a free market person but man people are being cheated and abused left and right. I really do recommend buyers hold onto their money and wait for this mofo to implode.
It's my pet peeve to see so many people and investment companies buying old houses, pretending to renovate them by painting over mildew and bugs, then they list it for double what it sold for a year earlier or they rent an unsafe house out to a poor tennant who can't get into a decent legit apartment rental.
What gives? I consider myself a free market person but man people are being cheated and abused left and right. I really do recommend buyers hold onto their money and wait for this mofo to implode.
How about recommending that Buyers hire a very competent Inspector to inspect the home and perform other important due diligence like pulling the CLUE report, actually comparing homes they are considering to ensure they are getting a decent deal, etc.?
The reality is Investors will continue to buy and flip homes and Buyers will continue to buy. If the "Lipstick on a pig" homes are properly vetted by Buyers then Investors who spend more on lipstick than actual work will dwindle as their homes take longer and longer to sell. Holding costs can kill the "Lipstick on a pig flippers".
How about recommending that Buyers hire a very competent Inspector to inspect the home and perform other important due diligence like pulling the CLUE report, actually comparing homes they are considering to ensure they are getting a decent deal, etc.?
The reality is Investors will continue to buy and flip homes and Buyers will continue to buy. If the "Lipstick on a pig" homes are properly vetted by Buyers then Investors who spend more on lipstick than actual work will dwindle as their homes take longer and longer to sell. Holding costs can kill the "Lipstick on a pig flippers".
Dang.
Clicked my Rep too soon.
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When inventory is this low buyers don't care about the condition, if it's for sale it will sell. In the last two years homes next door and across the street have been sold with multiple offers well over asking, both being about 40 years old with minimal updates by the sellers who were original buyers when new. Both had contractors working on them for several weeks before moving in, and based on what we have seen had to have spent at least another $200k, with all new kitchens & bathrooms, paint inside and out, new windows, and one even did a new 6' cedar fence.
It's my pet peeve to see so many people and investment companies buying old houses, pretending to renovate them by painting over mildew and bugs, then they list it for double what it sold for a year earlier or they rent an unsafe house out to a poor tennant who can't get into a decent legit apartment rental.
My pet peeve is hyperbole and exaggeration.
Seriously... there's good and bad flippers out there, and buyer should beware.. but we're not worse off if investors are buying old houses full of mildew and bugs, and fixing them up enough to be financeable for more average home buyers.
I understand that some feel like these home opportunities are being stolen from them unfairly but that's not usually true. Those homes would not finance in the condition they were in. Banks won't loan on them. If that's what you want.... a rough as-is fixer, you have the same ability to buy it that those investors did, for the cash price they paid. The "before" market is not nearly as competitive around here, as the "after" market.
Looking for hidden or undisclosed defects is ALWAYS important for home buyers. But the things that do get fixed in flips, often roofs, rotten decks, recalled electrical panels, old siding and paint fixed and yes, even bugs and mildew removed, and make them reachable for those buyers who could not have bought them otherwise.
Last edited by Diana Holbrook; 01-24-2022 at 11:22 AM..
Seriously... there's good and bad flippers out there, and buyer should beware.. but we're not worse off if investors are buying old houses full of mildew and bugs, and fixing them up enough to be financeable for more average home buyers.
I understand that some feel like these home opportunities are being stolen from them unfairly but that's not usually true. Those homes would not finance in the condition they were in. Banks won't loan on them. If that's what you want.... a rough as-is fixer, you have the same ability to buy it that those investors did, for the cash price they paid. The "before" market is not nearly as competitive around here, as the "after" market.
Looking for hidden or undisclosed defects is ALWAYS important for home buyers. But the things that do get fixed in flips, often roofs, rotten decks, recalled electrical panels, old siding and paint fixed and yes, even bugs and mildew removed, and make them reachable for those buyers who could not have bought them otherwise.
This brings me to another point, which is many homes should absolutely not be financable. I saw one with the floor falling in etc, yet the only "dangerous" finding was that the stove wasn't attached to the floor or wall. Before market is less competitive perhaps because most people are wise enough to see the difference between a home that should be demolished and a home that needs minor repair.
This brings me to another point, which is many homes should absolutely not be financable. I saw one with the floor falling in etc, yet the only "dangerous" finding was that the stove wasn't attached to the floor or wall. Before market is less competitive perhaps because most people are wise enough to see the difference between a home that should be demolished and a home that needs minor repair.
Where do we get these posters who knows NOTHING on the subject they post about?
In this case, it's the poster who demonstrated his/her ignorance about buying and repairs of homes, yet complain about investors. I am guessing the OP doesn't own a home.
Investors bring VALUE to a property that in need of repairs. They renovate the property, fix what's wrong and put a modern touch to the interior. By doing so, they bring the property value of the neighborhood up and in exchange they make a handsome profit for taking this risk.
Just because a floor is in need of repairs doesn't mean you'll need to demolish the entire house. You know nothing about real estate. Stop posting out of ignorance.
This brings me to another point, which is many homes should absolutely not be financable. I saw one with the floor falling in etc, yet the only "dangerous" finding was that the stove wasn't attached to the floor or wall. Before market is less competitive perhaps because most people are wise enough to see the difference between a home that should be demolished and a home that needs minor repair.
I don't see a prevalence of homes with structural issues financing. Appraisers may not find every flaw, but they will usually flag something major. And if not the appraiser.... the buyer's own inspector should find it.
What exactly IS your complaint? How would the market be better in your world? Help us.
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