How to Sell Your Home to a House Flipper in 7 Steps
Move-in-ready homes are a hot commodity, no matter the housing market conditions. A new report by TD Bank found that only 52% of first-time home buyers are considering fixer-uppers, down 7% from 2023.
When you need to unload a fixer-upper fast and avoid the hassle (and expense) of repairs, consider the option to sell the house to a flipper. Where a regular buyer sees a lemon, a house flipper sees a property brimming with potential.
House flippers usually purchase houses in as-is condition for cash, saving homeowners the expense of making repairs that lenders might require and the stress of showing and staging the home. But when you receive an offer from a flipper, you may be disappointed by the price, which will reflect all the work the house needs to become safe, livable, and marketable.
Let’s examine the types of situations that are a good match for working with an investor, how to find flippers near you, and what to expect from the process.
What is a house flipper?
House flipping is somewhat of a slang term for a specific type of real estate investing. A flipper typically buys a home at a certain percentage below market value — often off-market — then makes improvements by fixing damaged structures and refreshing outdated elements so it can be resold at a profit.
What’s considered a flip?
Property analytics company Attom Data Solutions measures house flips as any single-family home or condo purchased and resold within a 12-month time frame. The company’s latest house-flipping report found that 84,350 properties were flipped in the second quarter of 2023, representing 8%, or one of every 13 home sales between April and June 2023.
Do house flippers make a ton of money on my home?
House flipping margins can be tight and have recently become even thinner due to factors like low housing inventory and weak annual price gains. Data from ATTOM shows a nearly 30% year-over-year decline in single-family home and condo flips in the U.S. for 2023, marking the sharpest annual drop since 2008.
Nationwide house flipping gross profits in 2023 averaged $66,000, a decrease from $70,100 in 2022. This amounted to a 27.5% return on investment (ROI) compared to the property’s original purchase price. Profit margins for flippers are down significantly compared to 2022 (28.1% ROI) and 2021 (35.7% ROI).
Flipping is not necessarily easy money, but it is a legitimate business model for those who can swing it and keep their bottom line in the black.
