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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?
The homes that are bought cheap, are those that have been on the market a long time, badly need to be renovated to be livable or have hostile tenants or squatters who won't cooperate... All risks that banks and most home buyers don't want to take, or can't take, because they can't afford to make the repairs themselves.
Investor/flippers take those risks on these "bargains", invest that money, make the needed renovations to make it both livable and financiable, and earn the increase in the home's sale value. If they double the sale price, it's because they invested in gutting and refinishing a derelict house and made it worth that increase.
There are both good and bad flippers. We see both, but I actually see more good work done than bad.
If you think it's so easy... try it.
Quote:
"Clean slate for you to renovate"
"Great investment opportunity won't last"
"Don't disturb the tenant"
All mean this house needs to be gutted and isn't the kind of home most potential buyers should be looking at. They are "investor properties". That's what the term means.
Quote:
Really, are people showing up to this dangerous looking house with one photo and nothing else in the description?
No, they're likely buying it sight unseen, knowing they will likely have to go through the lengthy process of evicting the current tenants before they can see what they bought. That's why it's the price that it is.
Perhaps you need help from a good agent who can help you become a more educated shopper.
Last edited by Diana Holbrook; 02-25-2024 at 10:55 AM..
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?
No the listing agents aren't high. You just aren't the target buyer. Investors buy properties used as investments. Some owners are slumlords and others are there to fix them up, and flip or rent them. Not every investor is a slime bucket. Many do great things to help revitalize properties and cities.
What else is supposed to happen? Tear down every house that every owner neglects? Do you include elderly people in this group? I've seen many neglected homes by someone in their 80s who couldn't take care of it anymore. Are they trying to make a fast buck when they finally sell to get into assisted living?
Are agents immoral for representing elderly people who can't take care of their homes anymore?
Your post doesn't even make any sense to me. Neglected homes come from all categories of homeowners. Elderly, divorced couples, people dealing with health issues/cancer, landlords, etc.
Well I guess you two have answered my question on who lists these kind of properties. I got news for you, the sight unseen era is over. My grandparents were very old and broke when they died but didn't leave a delapitated home behind. The greedy will eventually get burned when their hot potato cools down. It's just a shame that unsuspecting buyers are so vulnerable, luckily I'm not one of them. I've had great buyer agents btw, I choose wisely.
And how is flipping ripping anyone off ?? How is flipping hurting anyone ?? Please OP explain how it is so.
I once bought a house at just below market value, sold it seven years later for three times what I paid. I didn't rip anyone off. I was happy. Buyer was happy. Three months later my buyer then flipped it for another $150,000. I had no regrets whatsoever. He didn't hurt me in any way. And his buyer was happy.
So. Is it a rip off if someone asks more than you want to pay for it? If you don't like the price, then don't buy it. And if someone buys something that is "over-priced" then so what? How is it "over-priced" if someone is willing to pay that price? If it is truly over-priced, then no one with much sense would buy it at that price.
Well I guess you two have answered my question on who lists these kind of properties. I got news for you, the sight unseen era is over. My grandparents were very old and broke when they died but didn't leave a delapitated home behind. The greedy will eventually get burned when their hot potato cools down. It's just a shame that unsuspecting buyers are so vulnerable, luckily I'm not one of them. I've had great buyer agents btw, I choose wisely.
And how is flipping ripping anyone off ?? How is flipping hurting anyone ?? Please OP explain how it is so.
I once bought a house at just below market value, sold it seven years later for three times what I paid. I didn't rip anyone off. I was happy. Buyer was happy. Three months later my buyer then flipped it for another $150,000. I had no regrets whatsoever. He didn't hurt me in any way. And his buyer was happy.
So. Is it a rip off if someone asks more than you want to pay for it? If you don't like the price, then don't buy it. And if someone buys something that is "over-priced" then so what? How is it "over-priced" if someone is willing to pay that price? If it is truly over-priced, then no one with much sense would buy it at that price.
I don't consider your transaction as greedy or unethical since you owned it for 7 years. Unlike the 3 month guy. Eventually someone is left holding the bag in the investor frenzy with honest buyers involved looking for a home to move their family into. You can always use the "market rate" argument but the truth is dishonest people often set the market rate. 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.
I don't consider your transaction as greedy or unethical since you owned it for 7 years. Unlike the 3 month guy. Eventually someone is left holding the bag in the investor frenzy with honest buyers involved looking for a home to move their family into. You can always use the "market rate" argument but the truth is dishonest people often set the market rate. Because the rampant greed,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.
I can't even tell who you're mad at here.
"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.
I don't consider your transaction as greedy or unethical since you owned it for 7 years. Unlike the 3 month guy. Eventually someone is left holding the bag in the investor frenzy with honest buyers involved looking for a home to move their family into. You can always use the "market rate" argument but the truth is dishonest people often set the market rate. 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.
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.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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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.
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