Did you know that fix and flip properties are on the rise? It’s next to impossible these days to view a home built in the early 1900’s and not see them completely gutted and remodeled. We’re talking hard wood floors that gleam, stainless steel appliances, new light fixtures, granite counter tops, updated bathrooms, finished basements, new carpet, new paint, new water heater and new furnace. Fix and flips today are providing buyers with some amazing possibilities for that new home feel but the sellers of these fix and flips are beginning to get burned by the market.
While the finishes in all these fix and flips are nice they aren’t amazing. While viewing 13 properties earlier this week, the majority being fix and flips, it got old. My buyers and I started to notice that finishes used in these remodels were all the same. We saw the same light fixtures house after house, same fixtures, same beige color paint, same brown carpet and same stainless steel appliances. After 13 properties we decided the only difference between these fix and flips was a few hundred square feet and a floor plan.
Fix and flips today have become the new cookie cutter home. Don’t get me wrong I think it’s great for a first time home buyer to have the ability to buy a home in an established neighborhood with all new updated features and appliances. What’s upsetting is the lack of creativity in this fix and flips. I understand why they all look the same; nice looking but inexpensive finishes. The last dozen fix and flips these sellers did looked the same and they all sold so why won’t the next dozen?
Out of the 13 properties we viewed the average days on market for these fix and flip rests around 70 days. Not too bad for the average days on market for all of Denver. However I should note that there were quite a few of these fix and flips that were well over 100 days on market. With a home that’s been on the market 70 plus days you must reduce the price in order to move the property. The average reduction in price was around $15,000 off original list price.
What’s the moral of the story? I think fix and flips can be a great thing. They can give a first time home buyer the home of their dreams. I also think the buyers need to be okay with the fact there might be another 100 homes that look exactly like their dream home in the same zip code. I think those that choose to produce fix and flips really need to be more creative with their updates because their homes are beginning to look identical to their competitor.
I think as a buyer if you’re looking for the deal of the year stop looking for foreclosures and start looking for fix and flips that have been on the market over 70 days. Those sellers need to move that house. You will have the most leverage in home buying when you attempt to purchase a property from someone who can’t fix and flip the next house to the current house has sold.