Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-29-2021, 08:24 AM
 
Location: The Triad
34,088 posts, read 82,929,741 times
Reputation: 43660

Advertisements

Quote:
Originally Posted by MrRational View Post
As it has come to be practiced... it is VERY bad.
There have ALWAYS been people who bought problem properties...
Until about the year 2000 they were almost all qualified tradespeople or old school RE pro's.

Then with the rise in liar loan buyers... we started getting the quick buck, lipstick on a pig, FLIPPERS.
With rather few exceptions they have ruined just about everything they have touched.
Reply With Quote Quick reply to this message

 
Old 12-29-2021, 08:28 AM
 
Location: Dessert
10,890 posts, read 7,373,369 times
Reputation: 28059
We bought a newly flipped house. I've seen pix from before the flip, and would not have considered buying it, just too many problems; I'm not willing to take on a remodel.
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 08:28 AM
 
Location: Raleigh, NC
19,432 posts, read 27,815,202 times
Reputation: 36092
IMHO, this topic is an example of asking "Is capitalism good or bad for society?"
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 08:48 AM
 
17,352 posts, read 16,492,563 times
Reputation: 28949
Our first home was an older home that we did quite a bit of work to. Roof/siding/windows/kitchen/bathrooms/updated electrical - which was needed but not cheap. We sold it for quite a bit more than we paid for it but we had also put a fair amount of our own money into that house. We also lived in the house for many years before we sold so we were able to enjoy all of those upgrades ourselves.

Within that neighborhood, there were owners, like us, who fixed up their properties and kept them well maintained. There were also owners that allowed their properties to decay and deteriorate - I remember seeing one home that had been left vacant and literally had wild animals living inside of it which was alarming. When the owners sold, those "handyman specials" were often bought by flippers who bought the houses to renovate, shore up and sell for a profit. Over time, the rundown, aging properties were spruced up and the neighborhood became much more sought after and, of course, the home prices went up accordingly as would be expected.
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 09:09 AM
 
Location: Cary, NC
43,269 posts, read 77,063,738 times
Reputation: 45612
Quote:
Originally Posted by Jkgourmet View Post
IMHO, this topic is an example of asking "Is capitalism good or bad for society?"

Or, "do you eat lettuce or have a navel piercing."
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 09:10 AM
 
Location: Orange County, CA
2,367 posts, read 908,460 times
Reputation: 2301
What about the owner who does a renovation and then lists it at a much higher price than what he would have done if sold as-is. Is that bad? Many owners do that, the extent of the renovation depends on how much work is needed to update the home. Could be anything from changing out gross carpet, to replacing windows etc.

Whether the owner "flips" it or the flipper does it, seems to me it's a deal between the owner and the flipper. Some owners don't want to deal with the work involved.

The point is there are buyers willing to pay more for nice homes. In terms of what's good for society, it doesn't matter to me who does the renovation.
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 09:22 AM
 
307 posts, read 164,105 times
Reputation: 544
Quote:
Originally Posted by MrRational View Post
There have ALWAYS been people who bought problem properties...
Until about the year 2000 they were almost all qualified tradespeople or old school RE pro's.

Then with the rise in liar loan buyers... we started getting the quick buck, lipstick on a pig, FLIPPERS.
With rather few exceptions they have ruined just about everything they have touched.
I completely agree. There are some flippers (usually it is a team) that are tradepeople and real estate pros that will rehab homes inluding plumbing, electrical, hvac etc. BUT, most the flippers are just doing cosmetic improvements that are usually just contractor grade but are driving up prices simply because they painted some walls and got some of the cheaper cabinets and hardware. They are also attractive buyers because they usually have cash, don't have outside inspection, and can do quick closings.
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 09:33 AM
 
860 posts, read 438,567 times
Reputation: 2341
Quote:
Originally Posted by Bungalove View Post
That's my objection to house "flipping'. Too many flippers (in fact, I would hazard to say the majority) put their money into cosmetic upgrades for the flip like new carpet, laminate floors, granite counters, SS appliances, etc. while leaving older plumbing, poor yard drainage, old or installing the cheapest HVAC systems, old wiring, etc. The problem arises when first time home buyers, in particular, are dazzled by the shiny new "upgrades" but in a few years are strapped by major investments in basic infrastructure fixes or replacements. I would much rather buy a home with a new roof, heating and cooling system, water heater, gutters and downspouts, and good drainage but needing cosmetic upgrades that I could do to my taste and at my own pace and budget.
But that’s their own stupidity. And you are right, I see it all the time. They will pooh pooh the house with the new roof, windows, and AC unit with the 1980s kitchen with old carpeting and green walls and fall over themselves with the house that has a new particle board kitchen with pretty gray walls. Nevermind all the important expensive items like the roof or furnace needing to be replaced in a couple of years.
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 09:34 AM
 
Location: Columbia, SC
10,966 posts, read 21,974,961 times
Reputation: 10659
Argument 1 presented against flipping is "Flippers elimate affordable homes?" and/or argument 2 is "Flippers put lipstick on a pig."

Most people who need affordable homes can't afford the cost to renovate a home, so to me that eliminates argument 1.

Argument 2 is resolved with a good buyer agent and a good inspector.

Also, someone made a good point that the same discussion revolves around owner occupants and landlords that renovate a home to sell. They own the home and have the resources to make improvements and increase profit. What is the argument against someone being able to do as they wish with a property they own? I can't come up with one, but perhaps someone else can?
Reply With Quote Quick reply to this message
 
Old 12-29-2021, 10:03 AM
 
Location: Fort Lauderdale, Florida
11,936 posts, read 13,098,224 times
Reputation: 27078
Quote:
Originally Posted by Diana Holbrook View Post
Mostly good. Flippers often take homes that are not in livable condition that would not qualify for financing, and they fix the major items to make them available for first time or other financed homebuyers. That’s a valuable service.
This. Also keep in mind flips aren't just $300K homes. Flips here in South Florida are in the over $1.5 million range. No one wants to spend over a million dollars on a home then have to renovate it. They want it done.

I don't have the time or energy for a rehab. My favorite client however does. He takes the worst, ugliest homes and makes them show stoppers. The worse shape, the better. I have a running joke with him when he wants me to go see a house I ask if dead bodies are falling out of the ceiling.

His flips have put a lot of money in my pocket, in his contractors pocket, in the building supply pockets, etc. Even his buyer's pockets has he mostly does multi unit they they are able to rent out.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top