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You may have seen house flipping shows on TV before. In these shows, there’s a flipper that purchases old, rundown houses, renovates them, and sells them for obscene profits. It’s not uncommon to see flips that earn $30,000 or more all for a month’s worth of work. Even though many people think these shows inflate those numbers, the reality is that flippers make $62,700 gross per flip, which corresponded with a 39.9% return on investment. That figure is even down from previous years. House flippers make a lot of money buying homes at rock bottom prices, putting a little work into them, and selling them for sky-high returns.
Why do so many people leave money on the table? If a flipper can put $10,000 into a home and sell it for $50,000, why wouldn’t the owner do that and keep their money? There are four reasons in particular why people choose to give money to flippers instead of keeping it for themselves. Let’s take a look at those reasons and also show how you can work around these issues and keep the proceeds of your home’s equity where it belongs – in your wallet!
Sellers Don’t Have The Cash And Don’t Want A HELOC
One of the big reasons why homeowners elect to sell their properties at lower prices is that they need repairs. Unfortunately, fixing a home costs money. If the homeowner doesn’t have the tens of thousands necessary to paint, fix floors, upgrade appliances, and perform essential repairs, then they have to obtain a home equity line of credit. HELOCs can take significant time for approval, and there is no guarantee that the homeowner will recoup those costs when it comes time to selling. Due to these complications, many homeowners choose to walk away at a suboptimal price. A flipper can then buy the property and make $62,700 gross income, on average.
FIXIMIZE solves this problem. We figure out what home renovations will maximize your home’s selling price. We then arrange for people to perform those repairs. You pay nothing, however, until closing. In essence, you’re the flipper for your own house, but you don’t need to have access to any cash to see the profits come closing time!
Sellers Are Busy
As anyone who has had a significant home repair or renovation can attest, they are time-consuming. Days and weeks can go by between flooring, painting, new cabinets, new tiles, and other common renovations. Most significant improvements will take between two and six months. Of course, smaller updates, like a fresh coat of paint, will be shorter. Remodeling the entire kitchen, however, might take well over a month to complete everything.
Since sellers are busy prepping to move somewhere else, usually coordinating contractors is not something with which they want to deal. For flippers, their entire existence is dealing with fixing up homes, so they will gladly take on these jobs. The original homeowner winds up selling the property at a lower price to a flipper to avoid the headache.
Instead of selling to a flipper, you can hire a general contractor to manage the day-to-day renovations. You can give them the vision of what you want, and they can be at your property, making sure things move along smoothly. FIXIMIZE can also take care of this for you, so all you have to worry about is how to spend the top dollars you’ll receive at closing time.
Sellers Are Unsure Of Which Renovations Have The Best ROI
Some renovations have a better return on investment than others. Many sellers are not sure which upgrades or fixes will result in a higher sales price. For example, does a new coat of paint have a better bang for the buck than a new roof? These types of questions are difficult for the average seller to answer.
Instead of selling to a flipper who knows all the answers to these questions, you can usually ask your real estate professional about which areas of investment would be wisest. Typically, kitchen and bath remodels have the highest ROI. In some markets, a bathroom renovation can recuperate 182% of its cost at resale. Kitchen remodels will also often fetch over 100% of the price at resale.
Any structural or foundational issue also needs to be addressed. Most conventional homebuyers will not want to acquire a property with a leaky roof. The only buyers typically able to close on those properties are investors who are looking for a good deal. Therefore, essential structural fixes also have a significant ROI.
Sellers Need To Move Fast
When people move, they’re often leaving their current home for a good reason. Maybe there’s a job waiting in another state, or perhaps they need to care for a relative. When looking to move, most sellers want to get out of their homes as quickly as possible.
Since flippers can often close all-cash deals in little time, many sellers are attracted to the idea of leaving their home quickly, even if it means leaving an average of $62,700 on the table.
At FIXIMIZE, we solve this problem by using our proprietary technology to find the highest ROI repairs and get those done as soon as possible. After we perform these repairs, these homes tend to sell fast once they are listed. After all, these upgrades transform homes into extremely modern and desirable places to live!
Don’t Make A Flipper Rich: FIXIMIZE Instead
Don’t sell your home at a substantial discount and give a flipper the chance to make lots of money on your home. Instead, flip your own house with FIXIMIZE. You don’t have to worry about having enough money, having enough time, or scheduling contractors. You don’t have to be an expert in real estate, knowing which renovations have the highest ROI. We can handle everything for you with our advanced technology and extensive experience.
If you’re looking to sell your home for top dollar in the Seattle area, contact us today for a free estimate. We’ll develop a plan to give your home a makeover so that it sells fast and at the highest price possible!
