By now you’ve probably heard of a “home stager.” A professional home stager prepares a house for sale by making it appealing in appearance to attract the highest number of buyers so it sells more quickly and at top dollar. Read more about home staging, and our tips for how to do it yourself in […]
The post New Trend: Home Flipper for Hire appeared first on J. Thompson Builders.
Now, have you heard of a home flipper for hire? Similar to a home stager, a professional flipper, usually a real estate firm/contractor, renovates the home for sale to make it more appealing to a larger audience of buyers, again ensuring the home attracts more potential buyers and sells for as high of a profit as possible.
With a professional home flipper as part of the real estate sale, the funds for the renovation project typically come out of the home sale.
recently reported on this trend explaining move-in-ready homes are more attractive to buyers than ones they have to invest time and money repairing. The problem: most sellers don’t have the cash to finance a renovation. Sellers are often equity rich but cash poor. Additionally many homeowners are unprepared to tackle a complete renovation on their own.
Renovation Realty in San Diego is one such company acting as both a general contractor and a real estate agent, undertaking major improvements to homes before marketing and selling the properties. The company is licensed in both real estate and contracting. “We do everything from $500 in electrical repairs to $1 million in renovations, if it makes sense,” says Cannon Christian, the firm’s president. Median renovation costs around $42,000. Renovation Realty charges a 5.5% commission in addition to construction costs, 2.5% of which goes to the buyer’s agent.
Current low mortgage rates mean buyers can pay more for a move-in-ready home. Most renovation contractors are dealing with homeowners who plan to stay in the home. What they often desire for renovations is not attractive to most buyers. This is where a professional flipper steps in when a homeowner is renovating to sell. They know exactly what appeals to most buyers, which allows them to invest work and money into only what’s required to sell the home quickly and gain the greatest profits.