In addition to local, state and federal government policy efforts to reduce blight, a market-driven solution is also emerging as home prices recover: home flipping. “It’s a great way for properties to be bought from a lender or from a seller who has deferred maintenance and to put them in a position where they are move-in ready,” said Watercutter, who added that homebuyers should carefully check the quality of work before purchasing a home flip. Ohio homes flipped in 2016 represented 5.6 percent of all single family home and condo sales during the year, up 11 percent from the previous year,
according to the ATTOM Data Solutions 2016 U.S. Home Flipping Report, which also shows Ohio home flips yielded the second highest average gross flipping profits in the year. Providing Move-In Ready Inventory The higher gross flipping profits in Ohio were available thanks to higher inventory of older properties available at deeper discounts and ripe for value- add opportunities such as the addition of square footage. Ohio homes flipped in 2016 were built in 1966 on average (compared to 1979 nationwide) and had an average square footage of 1,356 (compared to 1,422 nationwide),
moving foreclosure cases to the sheriff’s sale quickly, the slowdown in the process often comes after the bank repossesses the property at the sheriff’s sale. Bank-owned (REO) homes represented 10.2 percent of all home sales statewide in Ohio in Q1 2017, down 17 percent from a year ago, according to the ATTOM Data Solutions Q1 2017 U.S. Home Sales Report. Conversely, the share of sales sold directly to real estate investors at the sheriff’s sale jumped 38 percent from a year ago to account for 6.1 percent of all home sales in the first quarter — an indication banks are more willing to sell at the foreclosure auction rather than take the property back.
Home Flipping Property Characteristics
Median square footage
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ATTOM Data Solutions • P6
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