Yeah, context is important. On one hand, there's a decent chance they did significant repairs to make this house sellable in much better condition than it was prior. On the other hand, it's possible they did bare minimum bandaid fixes that don't last, but just enough to make it look nice for the sale (unfortunately common in certain markets and something I've seen firsthand). There's good flippers and bad flippers and it's hard to know which it is without inspecting the house.
I used to buy houses at auction or on the market and fix them up as new. They always sold in one day because we did a good job. They were unlivable and had tons of delayed maintenance issues. Frequently we'd replace all the plumbing, fix or replace drywall, straighten out bowed floors, new roof, siding, and windows. My brother's neighbor flipped their house and did the bare minimum. It never sold and the owner/builder went bankrupt. I had offered to buy it before he fixed it up but wanted about double what it was worth, then tried to sell it at a price it might have gone for if it was fixed up like new.
They did for sure. There’s no world where you can buy a property for $375k and sell it for $525k 2 months later as is. People also don’t understand what a free market it. You’re free to buy and sell as you please.
OP is right to be angry at flippers who drive up house prices unnecessarily, but in reality many flips are done at low margin because there is significant restoration and renovation required before resale.
Yup. My father in law is a home inspector. So many flips are just amateurs making cover-up repairs which just results in a ticking time bomb for whatever sucker they find to buy it.
Hey every house I’ve seen flipped was done cheaply, so cheap they just paint over cracks in the walls and dents on the kitchen cabinets. Let’s not…act like house flipping is the most ethical thing nowadays .
Installing a 10K toilet improperly just means you have made more expensive trash, not "improved" the house. I have yet to see a flipper that actually improves a house.
This happened to the house next door to me. Husband died from a brain tumor and wife couldnt handle the grief or afford the home anymore so it got foreclosed. Company from Atlanta bought it in fall 2021 for $204k and pulled all carpet and installed hardwood floors and painted the walls and insatlled new appliances and slapped a new price tag of $550k. Home originally sold for $172k in 2018.
This made my taxes double. When I disputed the hike and spoke with my tax assessor, he said if thats what theyre selling it for, thats what its worth, denied my appeal and hung up on me.
The home sat empty for 2 years and finally sold in late 2023 for $300k.
Fuck these hedge funds and house flipping greedy fucks. I hope this home was a total loss for that company.
How would the house next door being flipped, make your taxes higher?
Seems odd to me, though I have to say I'm not US based, so I have no idea what rules there are in your case.
Because the seller is asking a higher price for the home than its worth so therefore the local government considers that home worth however much the selling price is. When a homes value goes up, the local government will increase the value of the homes around it. The value of my home and my neighbors homes increased when the home went up for sale but when it sold for a much lower price than advertised, the next year the value of everyones homes around it came back down. So if I were to try and sell my house for $1M, all my neighbors homes around values would skyrocket. Now my home isnt worth that much and isnt going to sell for that much but the local government will exploit this to make more tax revenue.
In Belgium, you don't have a building permit at that stage yet. And certain works still need to be inspected. That can't be done in two months. So it would be very superficial renovation work. Definitely not worth the extra cost of $150,000.
Reddit kids don't understand how business works and lack financial literacy in general.
If someone bought that house for $375K, and spent six figures on much-needed renovations, what should it sell for at that point?
Besides, no one is forced to buy it, of course. If the price is outrageous, it likely won't sell. If the price is within reason, it will. What exactly is "extremely infuriating" here?
That’s great and all, but it makes it more difficult for people of lower income to afford those houses if they all get “flipped”.
Maybe they fixed a structural problem that could save lives, in that case it’s worth it, but idk. I’m just saying, improving things costs money, obviously, but there has to be a line that doesn’t price out everyday people from being able to afford a home.
What are you talking about? House flippers don't just buy houses and sell them as is, and if they did I doubt anyone would be a house worth 375K for 500K+
They would spend money on it, fix it up, then sell it at a profit a lot smaller than you think.
They do the bare minimum, let’s be honest. Was just speaking to a realtor friend about this. It’s like slapping make up on a pig. When done correctly, house flips can indeed be great.
Is this in US dollars? And do you know how big or small a renovation they have done to the property during those two months? Depending on that, this isn’t necessarily a good deal for the flippers.
No, it’s like taking shitty food that’s about to turn, and slopping some equally shitty sauce that masks the smell on it, and then charging twice as much. That’s the appropriate analogy with the vast majority of flips. If they actually addressed the home’s issues and did an artful makeover, then yay…but that’s not typical. 🙄
When we were house hunting we made it very clear to our realtor that we would not consider ANYTHING that had been flipped. The fact that you can't trust that any of the work was actually done properly, the vast majority of them are hideous seas of white and grey with cheap cabinets and lots of tile and ZERO character. It especially breaks my heart to see exterior pics of a beautiful period house and the interior pics look like a cheap new build.
Most large increases in equity like this come from buying a home, and going through the proper channels to make upgades while you're living in it as your actual home, and then selling ten or twenty years down the road. Greedy flippers want it instantaneously, and don't take neighborhood comps into account. If you pay $375k for a house in an area where most houses are selling for around that amount, dump $50k into "upgrades" and then try to sell for $525k, only an idiot is going to go into that much negative equity to buy it.
This doesn't tell the story. Did they put $130k into it fixing it up just to make a $20k profit or did they do nothing. Many houses in my area are for sale from the bank as foreclosures that have been totally trashed by the people living there before. They are listed sometimes 50-150k under market price. In this case, if whomever bought it for 525k wanted to pay 400-410k for it might have been able to outbid a flipper for it as there would be no money in it for them. This also happens around here and I see the new homeowner taking 3 years to fix it, which is fine if that's what they want to do. But most people looking for a house want one they can move into without doing much more than maybe putting down an accent wall.
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Bet the interior is tasteless home depo junk too
We need context. They could have dropped $100k on a reno before listing for sale.
Yeah, context is important. On one hand, there's a decent chance they did significant repairs to make this house sellable in much better condition than it was prior. On the other hand, it's possible they did bare minimum bandaid fixes that don't last, but just enough to make it look nice for the sale (unfortunately common in certain markets and something I've seen firsthand). There's good flippers and bad flippers and it's hard to know which it is without inspecting the house.
I used to buy houses at auction or on the market and fix them up as new. They always sold in one day because we did a good job. They were unlivable and had tons of delayed maintenance issues. Frequently we'd replace all the plumbing, fix or replace drywall, straighten out bowed floors, new roof, siding, and windows. My brother's neighbor flipped their house and did the bare minimum. It never sold and the owner/builder went bankrupt. I had offered to buy it before he fixed it up but wanted about double what it was worth, then tried to sell it at a price it might have gone for if it was fixed up like new.
See now this is real houseflipper
Houseflippers... Doing repairs!? Yea right, they patched that shit up slapped some paint on the moldy walls and called it a day
They did for sure. There’s no world where you can buy a property for $375k and sell it for $525k 2 months later as is. People also don’t understand what a free market it. You’re free to buy and sell as you please.
OP is right to be angry at flippers who drive up house prices unnecessarily, but in reality many flips are done at low margin because there is significant restoration and renovation required before resale.
Too many flippers ignore problems and hide them behind new drywall instead of fixing them.
Yup. My father in law is a home inspector. So many flips are just amateurs making cover-up repairs which just results in a ticking time bomb for whatever sucker they find to buy it.
You get black mold, you get black mold, YOU ALL GET BLACK MOLD!
The buyer decides the price, not the flipper
Also, we don't know why the person was selling for $375k either.
If you're facing foreclosure or simply have a ton of repairs and don't have the capital, $375k is a heck of a lot better than $0.
Also, in this screenshot, it hasn't even sold yet.
Hey every house I’ve seen flipped was done cheaply, so cheap they just paint over cracks in the walls and dents on the kitchen cabinets. Let’s not…act like house flipping is the most ethical thing nowadays .
Installing a 10K toilet improperly just means you have made more expensive trash, not "improved" the house. I have yet to see a flipper that actually improves a house.
Exactly, it can be done, but usually it is the cheapest tasteless renovation, without addressing the actual issues of the house.
Let’s see the before and after photos
Yep, and it’s always tasteless gray walls and the same shade of laminate flooring. 😫
This happened to the house next door to me. Husband died from a brain tumor and wife couldnt handle the grief or afford the home anymore so it got foreclosed. Company from Atlanta bought it in fall 2021 for $204k and pulled all carpet and installed hardwood floors and painted the walls and insatlled new appliances and slapped a new price tag of $550k. Home originally sold for $172k in 2018.
This made my taxes double. When I disputed the hike and spoke with my tax assessor, he said if thats what theyre selling it for, thats what its worth, denied my appeal and hung up on me.
The home sat empty for 2 years and finally sold in late 2023 for $300k.
Fuck these hedge funds and house flipping greedy fucks. I hope this home was a total loss for that company.
How would the house next door being flipped, make your taxes higher? Seems odd to me, though I have to say I'm not US based, so I have no idea what rules there are in your case.
Because the seller is asking a higher price for the home than its worth so therefore the local government considers that home worth however much the selling price is. When a homes value goes up, the local government will increase the value of the homes around it. The value of my home and my neighbors homes increased when the home went up for sale but when it sold for a much lower price than advertised, the next year the value of everyones homes around it came back down. So if I were to try and sell my house for $1M, all my neighbors homes around values would skyrocket. Now my home isnt worth that much and isnt going to sell for that much but the local government will exploit this to make more tax revenue.
In Belgium, you don't have a building permit at that stage yet. And certain works still need to be inspected. That can't be done in two months. So it would be very superficial renovation work. Definitely not worth the extra cost of $150,000.
Reddit kids don't understand how business works and lack financial literacy in general.
If someone bought that house for $375K, and spent six figures on much-needed renovations, what should it sell for at that point?
Besides, no one is forced to buy it, of course. If the price is outrageous, it likely won't sell. If the price is within reason, it will. What exactly is "extremely infuriating" here?
That’s great and all, but it makes it more difficult for people of lower income to afford those houses if they all get “flipped”.
Maybe they fixed a structural problem that could save lives, in that case it’s worth it, but idk. I’m just saying, improving things costs money, obviously, but there has to be a line that doesn’t price out everyday people from being able to afford a home.
The timeline of bought to for sale again doesn’t leave enough time for much meaningful work to have gotten done.
Wait until you find out about the guy that bought a house for a penny in Texas.
i wish there were non-profits that fight housing inflation by buying and selling them cheaper
What are you talking about? House flippers don't just buy houses and sell them as is, and if they did I doubt anyone would be a house worth 375K for 500K+
They would spend money on it, fix it up, then sell it at a profit a lot smaller than you think.
They do the bare minimum, let’s be honest. Was just speaking to a realtor friend about this. It’s like slapping make up on a pig. When done correctly, house flips can indeed be great.
Is this in US dollars? And do you know how big or small a renovation they have done to the property during those two months? Depending on that, this isn’t necessarily a good deal for the flippers.
Exactly, this could have been unlivable at the old price.
[deleted]
No, it’s like taking shitty food that’s about to turn, and slopping some equally shitty sauce that masks the smell on it, and then charging twice as much. That’s the appropriate analogy with the vast majority of flips. If they actually addressed the home’s issues and did an artful makeover, then yay…but that’s not typical. 🙄
When we were house hunting we made it very clear to our realtor that we would not consider ANYTHING that had been flipped. The fact that you can't trust that any of the work was actually done properly, the vast majority of them are hideous seas of white and grey with cheap cabinets and lots of tile and ZERO character. It especially breaks my heart to see exterior pics of a beautiful period house and the interior pics look like a cheap new build.
Most large increases in equity like this come from buying a home, and going through the proper channels to make upgades while you're living in it as your actual home, and then selling ten or twenty years down the road. Greedy flippers want it instantaneously, and don't take neighborhood comps into account. If you pay $375k for a house in an area where most houses are selling for around that amount, dump $50k into "upgrades" and then try to sell for $525k, only an idiot is going to go into that much negative equity to buy it.
This doesn't tell the story. Did they put $130k into it fixing it up just to make a $20k profit or did they do nothing. Many houses in my area are for sale from the bank as foreclosures that have been totally trashed by the people living there before. They are listed sometimes 50-150k under market price. In this case, if whomever bought it for 525k wanted to pay 400-410k for it might have been able to outbid a flipper for it as there would be no money in it for them. This also happens around here and I see the new homeowner taking 3 years to fix it, which is fine if that's what they want to do. But most people looking for a house want one they can move into without doing much more than maybe putting down an accent wall.
Or, it could be extremely infuriating.
Those prices are cute. From California, it’s a dream of a hope for either.
Yeah we also get paid way less than what you guys do.
2.5 times as much?
Why don’t you try doing that? :) Easy 200k, right?
Math is hard
…. Fuck 150k - chill out. 😓
Want to be funny but cant even do the math...