Special offer

Who Gets The Profit, You Or The Flipper?

By
Home Stager

Karen Fiddler did a great post about people's perceptions of Flippers.

While I see nothing wrong with buying a house that needs work, fixing it up and selling it for a profit, apparently others do.

This brings me to, who gets the profit, you or the flipper?

I am always disappointed when a seller doesn't want to invest in their home before selling.

They are leaving the door open for Flippers and DIY buyers.

This type of buyer is looking for basement bargain prices so they have room for a profit when they in turn sell the home.

To me it only makes sense to update and improve the home yourself so that you the seller reaps the profits - gets the equity you have invested out of the house.

I'm not talking about major kitchen or bathroom renovations.

I'm talking about paint, flooring, sinks, taps and lighting.

Then once these updates are done, Staging the house to show off the features in the best way possible.

Show the buyer how livable this home can be.

Show the buyer that they can live their lifestyle comfortably until they decide to do any changes they envision.

Realtors and Stagers can help you decide where to spend your budget for best ROI.

Sites such as www.homegain.com can show you the returns different updates provide.

 

There are circumstances of course that make it impossible to do updates.

 However, if you can manage updates, statistics show your home will sell faster and for more money.

 

Who gets the profit, you or the flipper?

 

 

 

 

 

 

 

Posted by

Retired Home Stager

 

 

 

 

 

 

 

 

 

Comments(8)

Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Janice - This is a good strategy for the average equity seller.  It is too bad that most short sellers have no money and can't invest in upgrading their homes to sell for enough that they won't be short sales.  Flippers can take those homes off the sellers' hands to free them from their overwhelming situation and the flippers deserve whatever profit they can get.  They will also bring up the property value of the entire neighborhood.

Aug 13, 2010 12:16 PM
Janice Ankrett
Burlington, ON
Staging Professional

Susan, I agree. There are circumstances when a seller just cannot make improvements. Getting out from under is all that matters.  I have no problem with Flippers improving a property and reaping the profit.

I feel that the 'average equity seller' is missing the boat if they don't make those small changes themselves.

Aug 13, 2010 12:35 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Janice,

I think this is a very good point often overlooked. If you don't do anything, then someone else will.

Brian

Aug 13, 2010 12:53 PM
Janice Ankrett
Burlington, ON
Staging Professional

Brian, indeed they will.

Aug 13, 2010 03:00 PM
Not a real person
San Diego, CA

As one who was involved in 818 flippings in 7 states in 33 years, I can tell you that flippers have a bad name, but that's not the reason why I left the business.

Aug 17, 2010 04:12 AM
Janice Ankrett
Burlington, ON
Staging Professional

Russel, I guess there are good and bad in every field. Flippers want a profit. They are in business to make money.

Some Flippers do a good job with quality materials and some do the bare minimum.

I guess that's where Home Inspectors come into the picture ;).

Aug 17, 2010 04:35 AM
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Janice, you have brought up some good points and a great question, who gets the profits? I agree that if you can, freshening up a home before selling will generate a good return on investment.

Ty

Aug 21, 2010 01:02 AM
Janice Ankrett
Burlington, ON
Staging Professional

Thanks Ty!

Aug 21, 2010 08:01 AM