Should You Flip a House in 2025? Steps, Costs, and Cautions
Is it a good idea to flip a house in 2025? See expert tips and insights to help determine if a house flip is a good investment in the current market.
Home improvement shows have popularized the concept of “flipping” houses, bringing this segment of the real estate industry into the living rooms of everyday Americans, even inspiring some to take on the challenge of buying a home needing TLC, updating the home with old-fashioned sweat equity, and selling for a nice profit.
According to real estate data firm ATTOM, flip transactions currently represent 7.5% of all single-family home and condominium sales, or one of every 13 home sales. Their latest report indicates that while the percentage of flipping activity decreased, it continued to see increased margins, with the typical profit margin up from the first to the second quarter of 2024 in 50% of the metro areas analyzed. They were also up annually in almost 58% of the same markets.
Sebastian Frey is a top real estate agent in Santa Cruz, California, with 21 years of experience working with house flippers to help them locate properties. While he thinks that it’s harder today for flippers to find good properties than in the past, he says, “There’s always a demand for rehabbed properties. If they’re done meticulously, there will be a lot of demand for that. People are happy to pay top dollar for a quality remodel in a good location.”
If you’re thinking about flipping a home in 2025, is it still a good idea?
Looking To Start Your House Flipping Journey?
House flipping is a complicated process that requires a serious balancing act of expenses and profit. This is where a real estate agent comes in handy, HomeLight analyzes over 27 million transactions to find you a top agent with experience with home investors. You’ll need an agent to both find your perfect flip, and sell it for you after you’ve made repairs. Connect with a top agent today to get started.
What is house flipping?
House flippers buy homes, hold them for a couple of months, and then sell them for a profit (that’s the flip part). Typically, they buy distressed properties — either short sales, foreclosures, or homes that need significant work — fix them up, and sell them for a hefty return on their investment. Sometimes flippers buy and sell homes to wholesalers without making any repairs or updates.
The goal is to buy low and sell for a high profit — one that covers both the home’s initial cost and any improvements.
