Redeveloping is not Flipping

There is no doubt that Buffalo has an aging inventory of homes and properties, and it would not be uncommon to come across homes especially in the City of Buffalo built in the late 1800”s.  Unlike many parts of the country our inventory is also in need of updating, rehab, and overall renovations.  With the current housing crisis our Western New York area did not experience the depreciation or flood of foreclosures however there are foreclosure and a large inventory of dilapidated properties. It is important to distinguishing the difference between “Flipping” a house and “Redeveloping” it.  For all the HGTV watches that think they can buy undervalued properties, slap a coat of paint on the walls, replace a few fixtures, plant some flowers and make $60,000 on the resale of the same property; I got news for you, its Buffalo and if you believe that than I have some great Florida swamp land for you to buy.  The bottom line is that flipping is bad for any community and people should be vigilant to discourage I; they don’t improve the property, and often times they don’t even have clean deeds to transfer.  Now “Re-Development” which often gets lump in as “flipping” is something that is needed and should be embraced by the community and municipalities.   “Re-Developing” is someone buying an undervalued property in need of repairs or updates and putting consider amount of money with a level of craftsmanship that is equal to new construction and bring that property back to a level of the market and the community. You will typically see these types of redeveloped properties being bought and sold by local companies or contractors with a solid reputation.  These properties usually find their way back on the market through Real Estate Brokers or agents.  “Flipping” is someone buying the same undervalued property putting little or no improvements to the property and trying to resell and profit off the natural market trends.  Typically the craftsmanship if any is sub-par and questionable.  Flipped properties which often will be on EBay or secondary Web sites hoping to lure the unexpected buyer and occasionally they will be listed with brokers.  Buffalo and its surrounding communities should be open to the groups of skilled contractors and craftsmen that take our aging vacant inventory and turn them into modern updated homes that are financeable and desirable to potential buyers.  The neighbors and tax man should love it.   And if you’re still leery of “re-developed” properties let me also shed some light on how the banks are now more than ever picking apart properties and appraisals; that without someone making improvements to these properties most of them are not financeable (unless you specifically applied for a rehab style loan FHA-203k).

 

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Personal Notes

  • Consulting with contractors
  • The Olympic Torch in Vancouver
  • My favorite pastime
  • Team USA at Vancouver!
  • Enjoying the local waterways
  • Vacationing in Russia