Short sale flipping in Poinciana...is it ethical? Sometimes I wonder how far out of touch NAR is with the reality of selling real estate in this market. I read in one of their email newsletters a couple weeks ago that they think flipping a short sale is unethical. What they referred to was a cosmetic flip. Where you buy the home, paint, put new carpet in, and sell it for a profit.
With over half of all properties in Poinciana being sold as short sales, I think this is a service that this community needs. Short sales sell for about 10%-15% less than regular sales in this area. The fact that it's a short sale makes it worth less. This is because buyers don't want to wait on the short sale process. A property is worth exactly what a buyer is willing to pay for it. 
If the lenders...I'm talking to you Bank Of America, Chase, Wells Fargo...want more for the house, then streamline the process so that buyers don't have to put up with sooo much crap when trying to buy a short sale. Having a buyer on the hook for 4 months waiting on short sale approval is unethical. Ok, maybe not, but it does suck and makes the property worth less.
I see nothing wrong with a pioneering investor buying short sales and waiting out the process. Then fixing the home up all nice and pretty and turning around and selling it. I have shown houses for some of these investors in Poinciana and they have done some great things with these homes. They aren't out trying to make millions either. They are making $2k-$3k for their trouble.
Lets put that in perspective. An investor gets under contract on a short sale, waits 2-6 months for the lender to approve it, and sinks $6k-$10k into the property to bring it up to snuff. NAR thinks them making a profit of $3k for their trouble is unethical?! I don't think so! When I'm out showing properties, I thank goodness some of these flips are around. They are move in ready, well manicured, and make great investments for other investors who don't want to go through the trouble of buying a short sale or home buyers who want a nice place to move into after closing.
Not to mention the fact that they sell for a higher price which brings other property values up. In turn raising the value of the comparables a Responsible BPO Agent uses when pricing the lender's next short sale. I say flip on flippers. A flip can't flop if it's bought with cash!!!
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Tutas Towne Realty, Inc is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.
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