House flippers could be the ideal answer to first time buyers looking to purchase a house. If you are interested in qualifying for your first home or if you are an investor interested in learning more about the first-time buyer market, then this blog is for you.
Real estate investors that purchase houses with the goal of renovating them for resell are called house flippers. These people could be the last option for anyone looking to purchase their first home at a decent price.
First Time Buyers
It has become increasingly difficult for an average income family to find a first time buyer priced home. Developers have begun to price their home out of the first time buyer price range. Building a home has a lot of costs associated with it and these expenses have gone up significantly.
Government costs such as inspections and taxes generally stay the same no matter what size or type of house you are building. I recently read an article that estimated government costs to be around 20% of the general cost of building a home. If the government expenses are the same for every house, then the home builder will need to build a higher priced home to increase his profit.
This means that developers are pricing their homes out of the first time buyer price range. There are fewer new houses being built in that first time buyer market which has brought the average housing inventory down substantially.
Conquering a Negative Stigma
There is a negative stigma against real estate flippers that must be squashed in order for their relationship with first time home buyers to improve. First time buyers cannot afford to fix anything wrong with the home that they buy so they prefer brand new homes. Since builders are now pricing houses out of the first time buyer price range that is no longer an option. So in order to fix this negative perception of house flipped homes, the investor must renovate the right way. Putting together a nice home that has been renovated well bring in first time home buyers.
Filling in the Inventory Gap
Investors have a great opportunity to fill an increasing need for inventory of decent priced homes. There will not be a lot of new houses in this price range being built, so it is up to real estate investors to fill this market void.
A first time home-buyer is relying on individuals like us to find bargains, raise funds, and get houses renovated . Doing this, can improve neighborhoods by increasing the value of the rundown homes to bring in more middle-class families.
Current Market for House Flipping
It is currently a great time for real estate investors to provide great houses for first time buyers. I believe that this market will continue to expand for many years to come no matter what the real estate market looks like.
I have a video called , “Now is the Best Time to flip Houses in the Past 40 years”. Since new homes aren’t being built in the first time buyer market price range, it will stick around for a long time. The current loan fees are very low and there’s not a lot of inventory available to first time buyers, so house flippers are making tons of money right now.
So I hope this information will inspire investors and those considering becoming a house flippers. If you decide to flip houses that are affordable to the first time home buyer, make sure you renovate the right way. Never compromise on the quality you provide so that you can help first time home buyers get a great first home.