[quote=CA renter]Yet, some have argued that flippers don’t push up prices or cause any problems for real buyers.
I’ve argued forever that flippers are a HUGE problem. It would be best if we could enact a windfall profit tax that would make flipping totally unprofitable.[/quote]
I for one appreciate the work that these flippers do. Especially the work that shows from the street (ie landscaping, fencing, concrete work, roof, etc).
Flippers improve the “eyesore on the block” and in doing so, lift ALL boats. We aren’t going to see any inventory to speak of UNLESS at least some of these boats are “lifted.”
The avg Joe6p that is able to buy that same property (at the lower “fixer” price) as a personal residence can often barely afford to cover the (often old and stuck) windows with something other than a sheet or towel after closing and scare up a used lawnmower from CL to mow down the weeds (several weeks after moving in).
Flippers buy and quickly rehab run down properties (usually fmr rentals) that would not otherwise sell to Gen X and Y UNLESS the typical improvements flippers make are already done. These buyers have neither the time, money or skills (and if they do, they lack the desire) to make the needed improvements themselves.
It’s so much easier for the young buyers to get an FHA loan, put 3.5% down and overpay for the “already flipped” house without having to put any additional cash in it to live in it.
Flippers provide a service to buyers and sellers alike. We can’t assume that some of these rundown properties would sell to ANYONE but an experienced flipper team and/or gen’l contractor or lifetime handyman/carpenter.
