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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.
The flippers don't even know about bigger problems most of the time. They don't invest in those type of inspections. My neighbor's house is in process of a flip. The owner is never there, the contractors are questionable and we've observed some shoddy work. They don't know or care where the land boundaries are and ignore the abutters. Anyone buying a flip has to understand they might be getting problems because the flippers overlook so much, or just don't care.
Ok, as promised here is a listing. It represents probably the worse problem I often see and everyone has become numb to it. This is obviously a flip attempt. Bought it and listed it five days later for double. But here's what really ticks me off. I guarantee you these photos are from 10-20 years ago, before someone neglected the place. - SNIP - Why is this allowed? And the kicker is several real estate cards were left on the kitchen counter. Why are agents that shameless? Why do they lie so much on the listing? The buyer WILL find out the truth as soon as they tour it. I just don't get it. Enlighten me please.
First - I SNIPPED out the story about a different property, because it could confuse the issue.
I'll try to answer or clarify the rest - one by one.
Quote:
Ok, as promised here is a listing. It represents probably the worse problem I often see and everyone has become numb to it. This is obviously a flip attempt. Bought it and listed it five days later for double.
OK, they bought it for $55K and relisted it for $110K right away, you're right about that. But it didn't sell, so they've gone through a series of price reductions for the last 6 months, from $110K down to $69K. That's not good for them. If there are lessons to be learned, I'd guess they're learning them now.
Property price
DateEventPricePrice/SqftSource
02/22/2024Price Changed$69,000 $71 ColumbiaSC
02/06/2024Price Changed$79,000 $81 ColumbiaSC
02/05/2024Relisted$82,000 $84 ColumbiaSC
02/02/2024Listing Removed- - ColumbiaSC
01/19/2024Price Changed$82,000 $84 ColumbiaSC
01/11/2024Price Changed$83,500 $86 ColumbiaSC
12/15/2023Price Changed$84,000 $86 ColumbiaSC
11/16/2023Price Changed$89,000 $91 ColumbiaSC
11/02/2023Price Changed$97,000 $99 ColumbiaSC
10/13/2023Price Changed$105,000 $108 ColumbiaSC
09/17/2023Listed$110,000 $113 ColumbiaSC
09/12/2023Sold$55,000 $56 Public Record
Quote:
But here's what really ticks me off. I guarantee you these photos are from 10-20 years ago, before someone neglected the place. - SNIP - Why is this allowed?
Do you have proof of this? Current pictures for us to compare? Because I can't find fault with the quality of the pictures. They appear to be clear and well exposed, showing all the major parts of the house.
Quote:
And the kicker is several real estate cards were left on the kitchen counter. Why are agents that shameless? Why do they lie so much on the listing? The buyer WILL find out the truth as soon as they tour it. I just don't get it. Enlighten me please.
What is wrong with the agents leaving cards? We're required to leave cards here* and it's customary in many places.
(*in most situations - it has recently changed a bit)
Agree there is no point in hiding things or lying in listings because the buyer will see the truth in person. Show me where this has happened here and I'll agree.
If an inspector checked this particular home, they would list the flaws, such as "about to collapse on itself" and the lender will still lend it to an uneducated buyer. What I don't get is, why such rampant lieing? Why say there's no HOA when there is? Or there's no tenant when there is? Or "great for first time home buyer" when the opposite is true? And I get it, home inspections prevent bad decisions. But why lie and waste people's time? My realtor was shaking her head when we saw the home in person verses what was depicted in the listing.
Why don't agents take fresh recent photos? The market is like a field of landmines.
You're adding a lot of facts here we're supposed to be able to divine from looking at a listing?
Why not slow down a bit and actually explain what your complaint is on this house? Show us what you want us to see. I'd love to be able to agree with you about many of these things, but we can't see what you saw in person.
Buyers need to do their due diligence. My granddaughter bought her first house last year. The house had been remodeled by first time flippers. The inspection turned up some shoddy workmanship, so the sellers kicked back $3500. for repairs, done by others.
She’s very happy, and the sellers next flip will probably be done more carefully.
Flippers, in most cases, do a service to the neighborhood. High tide lifts all boats.
Buyers need to do their due diligence. My granddaughter bought her first house last year. The house had been remodeled by first time flippers. The inspection turned up some shoddy workmanship, so the sellers kicked back $3500. for repairs, done by others.
She’s very happy, and the sellers next flip will probably be done more carefully.
Flippers, in most cases, do a service to the neighborhood. High tide lifts all boats.
There are some corrupt people in the flipping business and they have connections. The ones in my neighborhood fit this bill, they are ignoring ongoing problems, making a mess, they just don't care. The company is from out of state. A lot of houses in this hot market get sold without inspections. Things they did will create a moisture problem eventually, but seems fine now. I won't be surprised if another investor buys the property and turns it into a rental, not really caring if it is crap because they will still make money.
It is unfortunate banks don't make it easier for buyers to purchase fixer-uppers and do it themselves. Or that more people don't have the desire to do that. Having someone invest in the place they live to properly take care of it would be the best service to the neighborhood.
It is unfortunate banks don't make it easier for buyers to purchase fixer-uppers and do it themselves. Or that more people don't have the desire to do that. Having someone invest in the place they live to properly take care of it would be the best service to the neighborhood.
I agree! I do understand, on paper, why rehab loans force professional contractors with strict completion requirements, because $#*t happens and the project never gets finished otherwise. I get that. But I do wish there was another option for less-than perfect non-emergency repairs that could be done over time by homeowners.
Things like missing flooring and peeling paint could be done by the homeowner after closing. Give them a deadline. Even some professional work could be hired done after closing, with a deadline.
We've only ever done one rehab loan with a client, and there should have been more. And it's the process, not some lack of demand, that is the problem. Our client who was doing the rehab loan was not even allowed to haul debris to the dump to save money, under the terms of rehab loan. She had to pay to the contractor to do it. That's too bad.
Last edited by Diana Holbrook; 03-04-2024 at 12:59 PM..
Maybe I'm being overly sensitive, but I've developed an eye for listings where the owner bought the house very recently for very cheap, did some sort of improvement on it, if you can call it that, only to list it for double. The description is what gets me because no wise person would touch that home. I often look up the online county info and find more to the story in regard to ownership history. Descriptions that say,
"Clean slate for you to renovate"
Just because they tore up the walls kitchen and carpet and priced like a regular home? I get to repair this f up?
"Great investment opportunity won't last"
On the market several months and obviously a failed money pit.
"Don't disturb the tenant"
Really, are people showing up to this dangerous looking house with one photo and nothing else in the description?
I wonder if some of these listing agents are high or how they can be so out of touch with potential buyers. I personally stay far away from a home that's been used as an investment property because usually the residents didn't take care of it and the owner is just making a fast buck. I wonder who are the agents who represent these people? Are many non agents listing on the MLS?
What do you care?
You sound very angry and bitter.
Did you get burned in a RE transaction?
No one is forcing anybody too buy a specific house. Don't like it, don't buy it.
No one is forcing anybody too buy a specific house. Don't like it, don't buy it.
It is WAY more sinister than that. We are just now fighting an instance in my neighborhood. NY buyer, buys a house at half value in a quiet neighborhood. He ramps up the 4/2 dwelling to house a SHVR for up to 14 people.
Now, the home owners are subject to a revolving door of strangers, excess trash and on street parking, none of which are allowed in the existing covenants.
It is WAY more sinister than that. We are just now fighting an instance in my neighborhood. NY buyer, buys a house at half value in a quiet neighborhood. He ramps up the 4/2 dwelling to house a SHVR for up to 14 people.
Now, the home owners are subject to a revolving door of strangers, excess trash and on street parking, none of which are allowed in the existing covenants.
Bad deal, but that specifically is a buyer wrong-doing, not a flipper issue.
Maybe I'm being overly sensitive, but I've developed an eye for listings where the owner bought the house very recently for very cheap, did some sort of improvement on it, if you can call it that, only to list it for double. The description is what gets me because no wise person would touch that home. I often look up the online county info and find more to the story in regard to ownership history. Descriptions that say,
"Clean slate for you to renovate"
Just because they tore up the walls kitchen and carpet and priced like a regular home? I get to repair this f up?
"Great investment opportunity won't last"
On the market several months and obviously a failed money pit.
"Don't disturb the tenant"
Really, are people showing up to this dangerous looking house with one photo and nothing else in the description?
I wonder if some of these listing agents are high or how they can be so out of touch with potential buyers. I personally stay far away from a home that's been used as an investment property because usually the residents didn't take care of it and the owner is just making a fast buck. I wonder who are the agents who represent these people? Are many non agents listing on the MLS?
Your original post got me interested in revisiting the neighborhood that I referenced in my post.
Lo and behold, there is a house listed, the first in a long time in this multi-flipped neighborhood, and I know the guy. He lived with his very elderly parents, who must have finally died, which is what he said he was waiting for, years ago. The house was listed on February 22 and went pending 3 days later. even though it's a wreck & he's asking a outrageous sum for it. The house "needs repairs & is being sold as is", that's all true, but an understatement.
I'm going to closely follow this transaction & report back.
I'm waiting for the "open floor plan", gray walls, SS appliances, LVP gray floors, aka lipstick on a pig.
Last edited by CalWorth; 03-04-2024 at 08:11 PM..
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