I'm Weighing in on Home Flippers.

By
Real Estate Agent with Bill Cherry, Realtor 0124242

 

 

 

 

In the main, the homes that I have looked at with buyer clients in the past few months have shoddy workmanship and are horribly overpriced.

 

These flaws are apparently being overlooked by buyers who find themselves in the middle of a market that has very little product.  In other words, buyer demand far out reaches seller supply.  When it does, it encourages buyers to act imprudently.

 

That's the reality of the Dallas-Ft. Worth market at this time.

 

It is often obvious to me that building permits have rarely been pulled, even though they are required by law. 

 

One very expensive home, the product of a flipper, caught fire and burned the very first day it was listed. 

 

It seems to me that whether we are the listing agent or the selling agent, we need to see evidence that the work done was satisfactory -- the licensed inspector does that.  We also need to see and have in our files copies of the building permits that show that the work done was, in fact, done to code.

 

With respect to horribly overpriced homes owned and being marketed for flippers, it is the buyer's agent's ethical responsibility to inform his client, using comps, that it appears he will be paying a premium to buy that home

 

BILL CHERRY

Realtor-Broker

Since 1966

Keller Williams Dallas Premier

Direct Line: 214 503-8563

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Location:
Texas
Groups:
Texas Real Estate
Front Porch Majority
"Whacked"!!!
Everything is Bigger in Texas
Advice for Buyers
Tags:
flippers
flipping real estate
permits
ethics

Spam prevention
Show All Comments
Rainer
445,548
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Realtor / Author / Advocate/Short Sale

Very good points.... no excuse for those so called, "professional flippers", that DO NOT pull permits!!  What a shame!

May 29, 2015 12:02 AM #1
Rainmaker
719,234
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Bill, That is a sad state of affairs. Good luck with your campaign.

Bill Roberts

May 29, 2015 12:03 AM #2
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Bill, I think it's a total nightmare.  You should see some of this junk!

May 29, 2015 01:59 AM #3
Rainmaker
804,482
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Many people will take short cuts and ignore law and ethics in the pursuit of money. It is our job to educate and inform out clients. The ultimate decision is still up to the buyer but the buyer must have the proper tools and information to make a good decision.

May 31, 2015 12:12 PM #4
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Home flippers are giving themselves a bad reputation. I've experienced the same in my market area. 

May 31, 2015 03:17 PM #5
Rainer
606,566
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

It hurts see some people try to take advantage of low inventory to push their substandard rehab homes at a very high price.  A good home inspector should be able to put an end to it.  The buyer's agent can help by asking listing agent some poined questions about the proper rehab.

May 31, 2015 08:53 PM #6
Rainmaker
155,867
Rachel Rabinowitz
Guerilla Realty - Baltimore, MD
The Baltimore Realtor

Agreed! and in my market if you've got an FHA buyer and more than a 100% increase in value in less than 6 months you are looking at two appraisals. These homes should get a pre-listing inspection (not that I think any flipper seller is going to hire an agent that advises this way) that way the cards would be on the table.

May 31, 2015 09:29 PM #7
Ambassador
1,706,758
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Agreed that there is too much lipstick on a pig work being done. In some cases these inexperienced flippers are not even getting inspections before fixing up. They also use hard money lenders so the price is pumped up because of that. The flippers that are outstanding in Oklahoma City are former builders who have gone into remodeling and buy judiciously and know how to handle the details.

May 31, 2015 10:23 PM #8
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Rachel, maybe I'm not as good of a salesman as I think I am, but I have never had much success with getting any prospective home seller to get a home inspection. For some reason they'd rather the truth hit them in the face when the buyer has his done, and then they scramble trying to save their sale.

Home flippers and their Realtor have an interesting relationship, as you know.  They buy from the Realtor that feeds them the raw inventory, then as a pay back, the flipper lists the finished product with that Realtor.  It's interesting that we require Realtors to formally advise prospective buyers if the Realtor has any ownership or close relationship to the owner of a listing.  We totally ignore advising that the flipper's Realtor has more than just a close relationship with the flipper.

Joe, I'm glad to hear that you have experienced and well thought of builders doing flipping in Oklahoma CIty.  That sounds perfect.  Here, many of the flipper's crews come from the out of work fellows who hang around 7-11s hoping to get a day's wages.  The end products are sually pretty shoddy, and rarely has the owner pulled a building permit,

May 31, 2015 10:52 PM #9
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
393,656

BILL CHERRY

Broker & Wealth Coach
Ask me a question
*
*
*
*

Additional Information