Home Flipping: Restoring Homes in a Low-Inventory Housing Market

Two male construction workers in the process of home flipping

Multi-million-dollar mansions, there just aren’t enough houses for the number of people looking to buy or rent. This is the result of a SNAFU of past circumstances. Under-development in previous decades and a massive pandemic slow-down in the construction industry have conspired to result in an unignorable housing inventory shortage as buyers emerge to buy with a frenzy between lockdowns.

Almost every new seller finds their home facing multiple bids and buyers within weeks, sometimes days, of listing on the market. In every state and city market across the nation, this housing shortage is the first of two pillars supporting the ongoing sellers’ market – the second being the presently low mortgage interest rate.

In this market, home flipping is a rising industry and solopreneurs and teams are moving fast to bring shabby houses back to move-in ready for modern families. However, even rehab properties must be closed swiftly in a market this tight.

Why Inventory Increases the Market Speed

The low inventory is acting as a motivating force. Homes are being snapped up fast because buyers are afraid homes will be gone if they take their time – a real concern when sellers can choose from multiple high-value offers among competing buyers. In addition, anyone seeking property for their own primary home is also feeling the pressure of relocation from their current circumstances and the need to move carefully during an ongoing pandemic situation.

The unique housing market conditions of 2021, going into 2022 are unlike anything we’ve had to deal with before and the result has been a high-pressure sellers’ market. The winners, for the most part, are sellers if they can move at the market’s break-neck pace. Those facing the greatest challenge are families looking for a primary home, trying to catch (and afford) the few homes available on the market each month.

The Solution in New Construction and Home Flipping

New Construction Condo Rush

The solution to the housing shortage is clear and two-pronged. The first, naturally, is new construction. Right now, builders are rapidly constructing condo buildings to absorb the need for new housing and homes for first-time homeowners. New neighborhoods are in development and over the next few years, we hope to see the inventory shortage ease. In this market, home flipping is also a powerful way to add homes to the current housing inventory.

Flipping Old Homes Back Into the Housing Market

Home flipping is the art of rehabbing an old, shabby or damaged property back into a move-in-ready home. Flipping brings homes back on the market after they have fallen below a modern family’s ability to DIY. Today, home flippers are a valuable addition to the industry because they are adding to the housing inventory while also reducing the carbon footprint and acreage taken by new construction needed to meet the demand.

The Home Flipping Opportunity in a Low Housing Inventory

Any home flipper can tell you that a housing shortage is really a move-in-ready housing shortage. There are thousands of homes in every region that aren’t on the market because they are not market-ready – but they could be. With a little refinishing, insulating, and repairs, many homes now sitting vacant and in disrepair can be made back into starter homes and retirement homes for today’s homebuyers in need. Home flippers perform an essential role in the housing market.  Every neighborhood contains opportunities for a home-flipping team or home rehab specialist.

Buying and Selling Rehab Homes in Today’s Market

As buyers, home flippers are less subject to the inventory shortage. Often, searching a region for shabby and vacant homes can lead to opportunities you’ll never find on Zillow. You need to know local real estate brokerages so that you can find homes that are not considered ready for public listing. You can also pick up homes off auction and foreclosure that are as-is and less appealing to primary home buyers.

It is even more rewarding to sell, as all your hard work will be immediately appreciated by the eager buyer market. Today’s buyers are eager for any home that is beautiful, functional, and in good repair. If you’ve done a great rehab job, you’ll see pricing that rivals the home’s historical and neighborhood value estimations due to buyer pressure from the low housing inventory. As one of those few converted homes on the market, this is a great time to sell recently rehabbed and flipped houses and apartment buildings.

Home Flipping Teams Moving Fast to Close Deals

Both when buying a distressed home to flip and selling your flips to a new family, closing smoothly is essential for the home rehab investment business. Signature Properties Group can help you navigate through the purchase process, then smoothly locate, close with, and transfer completed properties to your new buyers. If you invest in the home flipping industry, a powerful closing platform can streamline both purchases and sales in your current business model.

Looking for great Pennsylvania homes with good bones for your next home flipping rehab project? Contact us today to work with a proven PA brokerage. We would love to connect you with as-is home sales and see some shabby homes with great potential come back to the local market through your expertise.

Real Reviews from Real Clients - Check out Zillow Profile

Zillow user Jamisonrp

Sold a Roxborough home in 2017

"Trish is amazing! Trish was my agent when I bought my home in Philadelphia, so of course I went to her when I was ready to sell. Despite an election and the holidays, she was able to have my house sold by the time frame I needed to move. Trish was always helpful with guiding me through the  process of paperwork, staging my house, and even went to my closing for me because I was out of town. She was always professional and incredibly knowledgeable about the market, comps, and finding appropriate potential buyers."

Zillow user Radcliffe Beverly

Sold a Phoenixville home in 2015

"Trish Puleo exceeded my expectations during the process of selling a home that was part of an estate. Since I was out of state, she offered to check on items and secured vendors to fix some repairs that were needed. She is responsive, knowledgeable, and thorough. She followed up on all showings  and got answers to questions from potential buyers even when I did not know the answer. I felt she always had my back especially with the settlement process since I was not planning on attending. I would highly recommend making Trish your partner in getting a house sold." 

Zillow user Abjkl

Bought a Phoenixville home in 2017

"We were first time home buyers who underestimated the details of what on the surface seemed to be a standard, as in everyone has the same forms and procedures and ethics, home buying process. Trish is an experienced  professional who brought with her calm sensibilities, timely and accurate communication, and complete knowledge of the requirements, timelines and paperwork. She was reassuring, helpful and on our side when we needed it most! Only wish we would have included her the moment we decided to buy a house!"

Zillow user Applescriptguru

Bought and sold a Phoenixville home

"Trish is an excellent realtor and property manager. She’s friendly, professional, honest, dependable, responsive, and knows the Phoenixville area intimately. We’ve been extremely happy with her services, and will recommend her to anyone."

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