Flipper Helping Bring Back Home Values

No not the dolphin! Flipper the investor, the person who buys¬† run down foreclosures, fixes them up and resells or “flips” them back on the market for resale and profit. Thanks to the flippers, we are seeing some clean fixed up homes that will pass appraisal inspection for financing, and they are helping to bring back higher sale values. This is a good thing, after the beating everyone took during the mid 2000’s boom market. One thing to be aware of, is that these investors have never lived in the property, therefore they can not give any good disclosures of known defects. Buying a flip home, even though they look like a model home, should always get a full home inspection from a professional home inspector. One unfortunate thing about the current market is the fact we have low inventory. This is causing prices to inflate due to multiple bidding. The downside is, many times this creates an appraisal problem. I see more and more buyers willing to pay above market value, or above what the property will appraise for. When this happens, the sale may fall thru, or the seller will have to lower sales price to appraised value. Sometimes, buyers will pay above appraised value, but not often.