House Flipping in Boise Idaho
Are you looking to buy or invest in property in Boise?
Flipping may be making a comeback. There were 143 flips in Boise in 2011. On average, those homes increased in value by almost $50,000 and were sold on average within six months, according to a study by Hennessey Appraisals.
Flipping is the practice of buying properties with the goal of reselling them for a profit. Profits come from appreciation – especially during a hot housing market – or renovations and improvements made to a home or property. Ever see the TV shows “Flip This House,” “Property Ladder” and “Flip That House?” During the recent housing boom, millions tried their hand at making money by buying, then quickly reselling, properties. But a surge in foreclosures, coupled with curtailed lending, put a halt to flipping’s popularity.
Low-Priced Boise Homes A Hot Commodity
When it comes to flipping a home, think total overhaul. New paint, floors, lighting and appliances are fairly standard, as is interior and exterior repairs. In some cases, new additions are added, too. That means flippers need plenty of cash – and they must be willing to take risks.
But the increase in foreclosures has made flipping popular again, market experts say. Today’s investor checks out all the foreclosure auctions for potential deals. In Boise, only 2.5% of homes (excluding condominiums and townhomes), or 47 homes, were foreclosed properties, according to the Intermountain Multiple Listing Service. But Boise is also seeing something relatively new: homes priced at or below $100,000.
The number of low-priced property in Boise makes flipping an attractive investment. According to the Hennessey study, the average listing price increased to $49,175 for the 143 flips in 2011. A closer look at those statistics shows:
* Boise Bench had 24 homes that were flipped for an average listing price increase of $52,299.
* West Boise had 16 homes that were flipped for an average listing price increase of $47,289.
* North Boise had 13 homes that were flipped for an average listing price increase of $56,587.
Boise Home Sales- Good For Everyone
Of course, flipping comes with huge risks if you’re looking to invest in property in Boise. Say you bought a foreclosed home for $85,000, put in $15,000 in repairs and renovations, then put it on the market for $125,000. If the home sells for that amount, then you’ve made a profit of $25,000. But in today’s rebounding housing market, that’s not a sure thing.
But when it works, it’s good for everyone. Construction crews and tradesmen benefit; neighborhoods no longer have to worry about dilapidated homes dotting the landscape; homeowners get a nice home at a reasonable price; and it helps raise the median home prices.