Have you ever sold a house to a flipper?

[Resilient]

We got a solicitation from a flipper.  Have you ever sold you house to a flipper? If so, what did you think of the process and result?  

Pros for flipper: As is. No commissions. Flexible close. 

Questions re: flipper: Redfin and Zillow have our house's sale price estimated at, oh, let's say, at $800,000 and we could sell at that in 10 minutes flat if we were ready, had about $8,000 of maintenance and repairs completed.

What might we expect as an offer from a flipper?

I'm thinking (totally guessing!) that on a regular sale:

Commission would be $5,500.  
Repair/maintenance, $8,000.  
Rental and storage until we find our next landing spot: $30,000 (yes).  
Current price escalation in the area is 12% per year. (Insane.)

So, if we sold to a flipper for $750,000, that would be pretty much a wash.  Right?  Does this match your experience with selling to a flipper?

 

[Scarlett]

3 hours ago, Resilient said:

We got a solicitation from a flipper.  Have you ever sold you house to a flipper? If so, what did you think of the process and result?  

Pros for flipper: As is. No commissions. Flexible close. 

Questions re: flipper: Redfin and Zillow have our house's sale price estimated at, oh, let's say, at $800,000 and we could sell at that in 10 minutes flat if we were ready, had about $8,000 of maintenance and repairs completed.

What might we expect as an offer from a flipper?

I'm thinking (totally guessing!) that on a regular sale:

Commission would be $5,500.  
Repair/maintenance, $8,000.  
Rental and storage until we find our next landing spot: $30,000 (yes).  
Current price escalation in the area is 12% per year. (Insane.)

So, if we sold to a flipper for $750,000, that would be pretty much a wash.  Right?  Does this match your experience with selling to a flipper?

 

I would expect their offer to be a lot less than 750k.  But that price point is way higher than. Homes in my area so my perception may be off.  
 

For instance, here I see houses bought for $50k by flipppers and then sold for $150k. Hard to know how much work they really needed though.  
 

Keep us posted! I love this stuff. 

[marbel]

I've never dealt with a house flipper but I have known people who have investigated the idea. They didn't do it because the offers were so low. I would not expect to sell a house worth $792,000 for $750,000 to a flipper. Look up the 70% rule. 

[Dmmetler]

We did for my FIL's house, which was in extremely poor condition, especially since he was close to being a hoarder. We only had to remove anything we wanted to keep, they took it as is otherwise. They offered 80k and sold it $225k. Based on the photos, I'm guessing they probably put in work that would have cost is about 100k to do, plus a lot of time and effort even if it was just waiting for workers to show up, picking paint, flooring and cabinets, etc. 

 

We were thrilled to get it and to NOT have to deal with the property. And with four grandkids who will overlap each other in college, it may not be a fortune, but the money will be put to good use! 

[Scarlett]

22 minutes ago, Dmmetler said:

We did for my FIL's house, which was in extremely poor condition, especially since he was close to being a hoarder. We only had to remove anything we wanted to keep, they took it as is otherwise. They offered 80k and sold it $225k. Based on the photos, I'm guessing they probably put in work that would have cost is about 100k to do, plus a lot of time and effort even if it was just waiting for workers to show up, picking paint, flooring and cabinets, etc. 

 

We were thrilled to get it and to NOT have to deal with the property. And with four grandkids who will overlap each other in college, it may not be a fortune, but the money will be put to good use! 

Which is not a bad gig if you don't have another full time job and/or kids you are caring for and homeschooling. I wish I was younger and had a bit of start up.....I would totally love to flip a house.  Between dh and myself I think we would make a decent team.  But alas, we are old and need health insurance.  LOL

[Dmmetler]

9 minutes ago, Scarlett said:

Which is not a bad gig if you don't have another full time job and/or kids you are caring for and homeschooling. I wish I was younger and had a bit of start up.....I would totally love to flip a house.  Between dh and myself I think we would make a decent team.  But alas, we are old and need health insurance.  LOL

I'm also guessing that it might have cost him less than 100K, since I believe he was a contractor and has his own team-so I suspect the profit was higher for him because he skipped a layer. It certainly took him far less time to get it fixed up and back on the market than it would have taken us. 

[Kassia]

52 minutes ago, Dmmetler said:

We did for my FIL's house, which was in extremely poor condition, especially since he was close to being a hoarder. We only had to remove anything we wanted to keep, they took it as is otherwise. They offered 80k and sold it $225k. Based on the photos, I'm guessing they probably put in work that would have cost is about 100k to do, plus a lot of time and effort even if it was just waiting for workers to show up, picking paint, flooring and cabinets, etc. 

 

We were thrilled to get it and to NOT have to deal with the property. And with four grandkids who will overlap each other in college, it may not be a fortune, but the money will be put to good use! 

We had a similar experience.  Sold my aunt's house to a flipper.  The house was in another state and in terrible condition.  I inherited half the house and the person who inherited the other half was a total ass and so difficult for me to deal with that I eventually refused to speak to him and had him only talk to DH.  It was a relief to have it sold and done with. 

[hippymamato3]

6 hours ago, Resilient said:

We got a solicitation from a flipper.  Have you ever sold you house to a flipper? If so, what did you think of the process and result?  

Pros for flipper: As is. No commissions. Flexible close. 

Questions re: flipper: Redfin and Zillow have our house's sale price estimated at, oh, let's say, at $800,000 and we could sell at that in 10 minutes flat if we were ready, had about $8,000 of maintenance and repairs completed.

What might we expect as an offer from a flipper?

I'm thinking (totally guessing!) that on a regular sale:

Commission would be $5,500.  
Repair/maintenance, $8,000.  
Rental and storage until we find our next landing spot: $30,000 (yes).  
Current price escalation in the area is 12% per year. (Insane.)

So, if we sold to a flipper for $750,000, that would be pretty much a wash.  Right?  Does this match your experience with selling to a flipper?

 

No. They are likely to offer 50-70% of the home's value.