Do REALTORS really know the differences between a FIXER UP listing on the MLS search result and a property that is prime for a flip home? Most Realtors lump these two types of properties into the same catergory which is a big mistake. They are totally different. First let me define each property and how they are percieved in the market.
FIXER UP OR FIXER UPPER PROPERTY: This type of home for sale in the MLS in most cases refers to a single family property. It is a property in need of major cosmetic restoration. New paint, replacement of carpeting , replacement of light fixtures, minor plumbing upgrades, restoring existing hardwood flooring. The costs will vary but most of the line items are moderate in price. The work can be done by the owner. In the event that the property is described by the agent that you will need "a contractor" or "seek a professional estimate then you are most likely looking at a flip home.
FLIP HOME: This type of home for sale in the MLS in most cases refers to a property needing extensive replacement of mechanical systems, structural changes to the floor plan, additional space and or complete replacement of kitchens and bathrooms. It is the Buyer's intent to resale the property quickly based on a capital improvements and not to occupy the property. The FLIP HOME also needs major exterior improvements for curb appeal. New landscape, lawn, shrubs, walkways and items of this nature complete the criteria.
The flip home is a complete retro fit from top to bottom vs. the fixer upper that needs less work and the Buyer in most cases will live in the property. Knowing the key differences and expressing this knowledge to a consumer is important in making the right selection of property.
REALTORS take note....when you don't know the differences and present the wrong property to the consumer you risk your credibility in front of them. One trade secret when working these properties with your clients is to view the home PRIOR to the showing with the BUYER. Have a list of the Fixer up items ahead of time and prep the consumer.
You will have better success at closing on this type of property with your clients.
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Well here is my experience...Real estate agents and consumers watch a TV show where 3 high energy perky "professionals" add a coat of paint, some flowers and mulch to the landscape and a few items from Target or Pier 1 around the house, hold an Open House and get an offer for $50,000 more than the owner paid that day. This is the mentality of a vast majority of people in our society based on a staged TV production; remember if the house does not sell then the audience will not tune in again next week!
My other issue is however more along the lines that agents tend to "Puff Up" the listing calling it a Fixer-Upper when it is in need of structural repairs and is functionally obsolete. Experience is our best tool; learn what agents exaggerate and which ones are more realistic agents, your clients want you to help them through this process and here in lies your success!