According to a recent report by Dallas News, home flipping is on the decline since there are fewer baragins in the market with the continued price appreciations across the US.
In fact, real estate investors are making smaller profits and finding fewer opportunities for deals after a two-year surge in property values that’s now slowing. According to National Assocaiton of Realtors, the median existing-home price climbed 4.9% in July from a year earlier, compared with a 13.1 percent jump in the same month of 2013. Distressed homes accounted for the lowest share of sales since at least 2008.
Ironically, we had warned For Sale By Owners about the flippers and wholesalers who were in the market to tie up properties for the sole purpose of flipping the contract to someone else.
But if you plan to sell your own home you will need to avoid real estate wholesalers and flippers. A Wholesaler is a fake buyer who only want to tie your property long enough to flip it to another buyer.
These real estate wholesalers have no plans to close the escrow on your house and are only in it for a quick fee. So, the challenge facing the For Sale by Owners is to spot the fake offers from the real ones. But how will you be able to tell a real buyer from a Wholesaler?
In short, if you are selling your home by yourself, there are plenty of serious challenges you face and you don’t need the additional burden of dealing with real estate wholesalers. And keep in mind that according to National Association of Realtors, 28% of the homes sold by their owners were under-price which means as owners you might be starting your negotiations at a huge discount.
Contact Us if you need help with your Silicon Valley home sale.