A “Flip” is a home–usually a distressed property (in foreclosure or neglected shape)–bought for below market value, then remodeled and “flipped” or sold for a higher price in less than a year. This process generally includes a thorough overhaul including paint, flooring, surfaces, lighting, appliances, and interior/exterior repairs. Some investors specialize in flipping, though much like real estate in general, the flippers slowed dramatically after the bubble burst. Now, however, flips are picking up momentum again, largely due to the number of low-priced homes currently on the market, many still existing in the once unheard of under $100,000 category.
Hennessey Appraisals (www.hennesseyappraisals.com) recently did a study on Ada County Flips and came up with the following:
Boise saw 143 total flips with an average increase of $49,175 in listing price, and with the majority of them selling in 170 days. The Boise Bench, with its older but larger homes, was the clear area winner with 24 flipped homes in total. West Boise and North Boise came in second and third.
Home flipping is good news all around: For construction workers and tradesmen often brought in to work on these properties; for buyers who are spared having to do remodels themselves; for neighborhoods getting their ‘eyesores’ cleaned up and given a fresh start; and for raising the median home price that has been pulled down by the lowest priced home category.
For more information, check out my YouTube video on this study: