[quote=SD Realtor]JP not true at all. The appraisals and BPOs use the sales off the MLS. Flippers dont buy from flippers. They are buyers not flippers.
Also a buyer is a buyer is a buyer. Ask any appraiser where he gets his comps. He gets them from the MLS, he doesn’t go to trustee sales. Now you track properties, you can go to the tax rolls to see how many of them had trustee sales to 3rd parties to form comps. See for yourself and add the stats.
Again, there seems to be a FUNDAMENTAL premise that the home would sell for much less if it was put out on the market by the bank. Why is that? Do you really think that that many of the buyers out there are flippers? So far there are 2 or 3 properties mentioned… I just don’t get it.
When you say “many” of those buyers are flippers can you quantify that? Pick an area and I will look at the past 20 sales and we can see who was a flipper. Please pick an area that you or CAR want to buy in so we can see how all these flippers are squeezing you guys out. Finally if the data was available to show how many people in those same areas were being aided by banks I think we would clearly see which had more of an effect.[/quote]
SDR,
Again, you are focusing on the TS flips…and that is NOT my focus. I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.
As far as I’m concerned, the buyers who overpay for the typical flipper upgrades are as much a part of the problem as the flippers themselves.
It’s just that after all these years of the HGTV fools and flippers, it would be nice to see a market dictated only by people who are bringing significant money to the table and who understand the market. I can’t tell you how many times I’ve talked to new buyers who had no idea the house was flipped or how much the flipper paid (until I told them). It’s sickening to see how uninformed people are…and THIS is what we’re competing against. It sucks!
BTW, there is NO disagreement between us about what is really driving the market right now: government and lender conspiracies to hold back inventory and increase subsidies to buyers in an attempt to artificially force prices up to abnormal and unsustainable levels. The thing is, since the lenders/govt are doing this, it creates a **supply-constrained** environment where fraud and flips will affect the market much more than if we had a free market.
