[quote=recordsclerk]It’s not the upgrades as much as the type of flexible lending in flipped homes. Most buyers/1st time buyers in the under $400K market have marginal down payments and want a finished home they can just make payments on. Foreclosures and Short Sales usually only offer conventional lending and are missing out on large portion of buyers. That’s why the FHA/VA buyers gravitate towards the flipped homes. If you don’t have the money for a conventional loan, you won’t have the money to re-model after the purchase. This is how flippers are making a living. People like convenience and are willing to over pay for the service. There are a lot of concessions (down payment assistance, closing cost) that are not seen or recorded on a flip sale. The best deals are short sales, followed by foreclosures in today’s market.[/quote]
I wouldn’t say the $400k is the limit, but I agree with what you’re saying with regards to 1st time buyers. Mira Mesa is a 1st time buyer area. I’ve seen an upgraded house get $60-90k more than an un-upgraded house, even when the upgrade could have easily been done for $30-40k. I watched HGTV shows and even buyers up to $800k wants move in ready. I think the mentality today is, they want move in ready and not have to do any fixing or upgrading.
