What is it? And can it pay off?
Apparently it is still profitable in Port St. Lucie, especially if you or someone you know has homebuilding and handyman skills.
Port St. Lucie has been named one of the top 15 real estate markets in the United States where someone can buy a home, sell it in six months and turn a profit, according to the RealtyTrac Midyear 2013 Home Flipping Report.
The market is one of seven in Florida to have made the list as the most profitable to “flip” a home.
Nationally, the number of homes flipped in the first half of 2013 is up 19 percent from 2012 and up 74 percent from the first half of 2011, according to the report.
Currently, we have more buyers looking than we have “good” homes to sell them, so buying a home in need of TLC and putting a little money and a lot of work into (sweat equity, anyone?) can really pay off.
I recommend allying yourself with a realtor (of course) who has knowledge of the specific area, the market, and what buyers are looking for. Find one who can perform a reasonably accurate comparative market analysis so you will know what to expect in terms of your return-on-investment (ROI). Don’t forget to include closing costs and any pro-rated taxes in that figure.
According to the most recent report from the Florida Association of Realtors, the first quarter of 2013 showed almost 21% more sales over first quarter of 2012, with fewer days on the market and a reduction in new listings and inventory of homes for sale. That means that competition among buyers is FIERCE, and home prices have risen almost 12% in the past year.
Keep in mind that many-to-most of our new homeowners are financing with FHA and VA loans and there is government-mandated waiting period of 90 days from last sale before they will approve financing. Also keep in mind that it will take 30 to 45 days in some cases before closing, even after the effective date of the contract to purchase. This depends on the lender, type of loan, and includes their required inspections, appraisal, survey, and insurance commitment.
If you’re interested in a more detailed breakdown of the statistics and processes involved in “flipping” please contact me and I will send it to you.
Call me at 772 323-3130 or email to: SusanLaveryRealtor@gmail.com