In response to the COVID-19 pandemic, more buyers are flipping old houses to turn a profit as demand for single-family homes surges across the nation, according to Forbes. Companies like New Again Houses, HomeVestors of America, and Express HomeBuyers are flooding the market with all-cash offers for fixer-upper homes, then making structural and cosmetic repairs to boost the home’s value.
Even when factoring in the increased cost of home repairs amid supply chain disruptions and materials shortages, robust demand for single family homes is keeping profit margins steep for individual buyers and larger companies who are flipping and selling homes.
In choosing the houses it will transform, New Again Houses seeks residences where value can be added through efficient rehabs. Due to their near half-century or more age, many of these abodes require extensive upgrades to systems. “Homeowners typically don’t have enough cash or expertise to make these improvements,” [Matt] Lavinder says. “We take a lot of pride in updating the systems and not just cosmetic upgrades.”
When the company leverages its capital and construction expertise to upgrade electrical and plumbing systems, Lavinder believes it adds value that doesn’t just benefit individual homeowners. “We are also playing a small part to solve the country’s current housing crisis,” he asserts.