Throughout the late 2000s it was all the rage for investors, contractors, and even amateurs to buy and flip houses -- foreclosures for the most part. Though activity in this area of real estate has waxed and waned over the past decade, it is still alive and well – and evolving.
While the trend began with a strong focus on run-down properties either in foreclosure or already bank-owned, this has changed over the years and we’re now seeing a change in traits of these homes from downtrodden, dilapidated areas to higher-end properties in affluent metropolitan locations. In fact, throughout 2013 alone, flips of two to five million dollar homes increased by more than 350%. Many of these flips are taking place in up-and-coming neighborhoods in cities like New York, San Francisco, and Los Angeles.
What does this mean for sellers in high-end markets? It’s good news, frankly. When house flipping was laser-focused on foreclosures in less affluent areas, that left owners of higher-end properties out in the cold when it came to options for a fast, all-cash sale.
With this rise in the popularity of luxury home flipping, this opens up the possibilities to those who may just want a quick out from an expensive property. Perhaps the home is in bad need of updating, renovations, and repairs or the owner has found a new property and just wants out as quickly as possible. The evolving house flipping trend means that these owners may just be sitting on a valuable, in-demand piece of property that can easily and quickly be converted into cash.