When flipping a property, wait at least 90 days to put it back on the market


When flipping a property, wait at least 90 days to put it back on the market
By Scott Rogers • August 15, 2013
If you are purchasing a property to renovate and the list for sale again, you should wait at least 90 days (from the date you closed on the purchase) to put the property back on the market. If you only waited 30 days to put the property back on the market (kudos to you for a speedy renovation job) and if a buyer then comes along and writes a contract on the property before 90 days have passed, then the transaction will be flagged as a flip via the appraisal property. Once flagged as a flip, by Fannie Mae / Freddie Mac guidelines, there will be a variety of implications for the transaction: two appraisals will likely be needed, instead of just one the appraiser will likely need a list of the improvements that were performed along with the value of each improvement purchasers (borrowers) will be required to have at least a 20% down payment The third item above (20% down payment requirement) is what can quickly make a deal backfire, especially if you have purchased and renovated a home that will be appealing to first time buyers.....many of whom will not have a 20% down payment available. So, as an investor, or someone considering purchasing a property to renovate and then list for sale, it is highly advisable that you wait to list the renovated property for sale until at least 90 days after you closed on the purchase of the property. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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