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"Because the rampant greed, don't be surprised if federal laws start shutting out the sleazeballs in favor of the Berkshire Hathaways. Then there will be no more little guy investors to complain about. The next generation will be renters."
What does that mean? Break it down for me.
You have choices, Snowman, you can buy a cheap fixer house that needs to be renovated, or you can buy one that is "flipped" and is all new and clean and pretty for more money, or you can often find some compromise in between. If you are financing your purchase, the banks would rather lend on the remodeled one than the fixer. That's just the reality. Banks don't do regular loans on fixers. And rehab loans are not for the DIYer.
Flippers may not have owned the house long, but if they bought it and put a lot of work into it, put a new roof, electrical, insulation, kitchen and bath, flooring and paint, they may have spent more on it than they paid for the house. AND THAT HAS VALUE.
You think they didn't spend anything on it and they're getting away with a big markup? Show us a link.
How about I buy none of the above and spare getting ripped off? I can usually find some reasonably priced listings, I only need one to live in unless you're black rock. Federal laws are moving towards greener homes. Little guys won't be able to afford an overhaul of a whole electrical system, but Berkshire Hathaway could. Lenders may become so tight only the rich or current homeowners can buy. Luckily the flippers are getting squeezed out, but they still dwell in the lower priced market. I think realtors should travel more and see outside their bubble what is happening and coming to their area.
How about I buy none of the above and spare getting ripped off? I can usually find some reasonably priced listings, I only need one to live in unless you're black rock. Federal laws are moving towards greener homes. Little guys won't be able to afford an overhaul of a whole electrical system, but Berkshire Hathaway could. Lenders may become so tight only the rich or current homeowners can buy. Luckily the flippers are getting squeezed out, but they still dwell in the lower priced market. I think realtors should travel more and see outside their bubble what is happening and coming to their area.
I swear, Snowman, you're like a an AI random outrage generator. I can tell you're upset, and I'd love to both understand you, and help if I can... but I have no idea what you actually want! Seriously. Try to focus and articulate ONE point clearly.
I don't consider the three-month guy greedy at all. He saw an opportunity and made the best of it. And no one got hurt.
You seem to "see" rampant greed when in fact most of what happens is just businesses and people making money. That is called capitalism. As long as the buyer and seller are happy, where is the greed.
Markets come and go. I have made money selling my homes and I have lost money selling my homes. If someone is smart, and makes a good investment, and makes money, that is not greed and that in itself is not being dishonest.
I have bought and sold seven homes over the years and have yet to find a dishonest buyer or a dishonest seller. I did once encounter a dishonest listing agent, but I was not fooled, again no one got hurt.
We seem to see things differently, and that's okay. I just don't see much greed or dishonesty in the real estate market.
Now where I do see a problem is where a buyer or seller is not very intelligent or savvy and someone takes advantage of that. But if you look at the regulations pertaining to real estate sales you should see there are a lot of safeguards built in to the process to protect the less savvy buyer/seller. But the "government" cannot protect everyone from every stupid thing that someone might do. Or at least they shouldn't have to.
When flippers flip time is of essence, so no, I wouldn't move into a home that was flipped in 3 months by someone whose not going to live there themself. Who knows what corners were cut. Inspectors can't find everything on day one of a renovation, things pop up over time. Cheap materials built by cheap labor doesn't compare to a home that's been built well and taken care of over time.
A real estate agent has a family to feed and a home to pay for just like anyone else. Naturally they will accept any listing, because they get a percentage regardless of whether the seller makes a profit. Of course any agent prefers to sell a nice 2.4 million home in an upscale neighborhood, but without those available they may have to list the $500k fixer. If the flipper buys a house, does some work and sells it for double, good for them. Anyone could have done the same, buy it cheap, fix it up and flip or live in it. We are in our 3rd house and have done a lot of work on all of them before moving in.
It's a sad statement that people can only afford fixer uppers. Except the value isn't there often enough. Fixer uppers are good if the cost to make them move in ready doesn't exceed the cost to buy a house that's already move in ready. As the values bubble up it becomes less obvious how much people are really getting ripped off.
I swear, Snowman, you're like a an AI random outrage generator. I can tell you're upset, and I'd love to both understand you, and help if I can... but I have no idea what you actually want! Seriously. Try to focus and articulate ONE point clearly.
I don't need anything, just making a statement that I don't think is being made enough. You're living with blinders on if you don't know what I'm talking about.
Fixer uppers are good if the cost to make them move in ready doesn't exceed the cost to buy a house that's already move in ready.
So you acknowledge it costs money to make them move in ready.
Quote:
As the values bubble up it becomes less obvious how much people are really getting ripped off.
Who is getting ripped off? Be specific! I want to understand your point.
Quote:
Originally Posted by Snowman05
I don't need anything, just making a statement that I don't think is being made enough. You're living with blinders on if you don't know what I'm talking about.
I'm both smart and fair and I'm trying to understand you. You aren't being clear.
I wonder if he' talking about those flippers who buy a lower end house in a decent neighborhood. Replace the carpet with LVT, toss on new paint inside and out (did they get a deal on a tank car full of dark gray paint -- every flip house in town gets the same paint job regardless of what it's made of or style); drop in some new plumbing fixtures and new appliances then sell for double the price. Hiding all the structural and systems problems under a coat of paint. Son and his wife bought what they thought was a nice home in a middle-class neighborhood. Within the first year they had to replace the sewer and part of the plumbing, the shiny new floor that had to be torn up to get to the sewer, and the roof. A/C is on the list for this spring, but at least they knew that going in. So far about $40K fixing all the stuff that was hidden behind the new floor and new paint.
Small lot (less than 1/3 acre) sold last year for $85,000. Across the street from us.
Listed again this week for $150,000. No improvements made--just bare land ready to build... Will be interesting to see if it sells for 150K. Very little buildable land left in our town anymore--it's built out except for miles away from town center...
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