I participated in a Brokers Tour this week to show off my listing, which is a fabulous renovated cape. My client purchased the bank-owned property, fixed all the plumbing and electrical issues, totally remodeled the kitchen and two full bathrooms, repainted, landscaped, and tended to all the details to make this house look great.
The house is completely move-in ready and just waiting for some new owners. So at the tour, I was invariably asked if the owner was a flipper. I replied, "I prefer to call him a neighborhood revitalization specialist."
The number of bank-owned properties are increasing, and neighborhoods are suffering as a consequence. We should be welcoming investors who take a huge risk to purchase, restore, and resell a vastly improved home. They have to carry the costs and hope to recoup the money they spent in improvements, which is especially risky in this market.
The term flipper connotes someone who buys a distressed property, slaps on some paint, pads the costs, and reaps huge profits. I know this isn't always the case, but public opinion of flipping is often a negative one.
On the other hand, a neighborhood revitalization specialist is someone who assesses the property, calls in licensed contractors to fix all the mechanical and electrical systems, remedies problems that would prevent the sale of the home, cleans and refurbishes each room, and may upgrade kitchens, baths, etc.
My client is a NEIGHBORHOOD REVITALIZATION SPECIALIST and he should be commended for helping to save the neighborhood!
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Peggy Chirico, REALTOR®
Serving the Greater Hartford Area
Prudential CT Realty
peggychirico@gmail.com
860-748-8900
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I love this term! Haven't heard it before. But, I will definitely use it in the future. Thanks for the new perspective.
This is awesome. I love the term NEIGHBORHOOD REVITALIZATION SPECIALIST. Your client does deserve to be commended. His work brings that value of the entire community up.
Love it! Just shows how important evocative labelling can be!
"neighborhood revitalization specialist" - I love this... I will have to use that one more often :) happy friday!
Peggy you nailed it "The term flipper connotes someone who buys a distressed property, slaps on some paint, pads the costs, and reaps huge profits."
Unfortunately people use the term flippers (including Realtors) without what it means. A flipped property is much different then what your Investors are doing, and that is why there is rules against flipping.
A little long but I like the positive connotation of "Neighborhood Revitalization Specialist."
Peggy, that is a great little tag line! Might have to steal it in my area!
I love that title! My husband have been revitalizing distressed properties for about 10 years and for every single one we have done I have considered it to be bringing the house back to life.
Good communications strategy. Would the community prefer a dilapidated house with a series of irresponsible tenants? Nope, now they'll have a neighbor who will be justifiably proud of their new home.
Thank you everyone! I am glad you like the title! Please borrow or steal it! We need to change the perception!
I agree 100% I have rehabbed many houses in my day and there is in some cases a good bit of risk. If you are willing to take the risk and are fair with people there is nothing wrong with a profit.
I think a lot of the angst came from people snapping up properties - doing mininmal lipstick jobs and then slapping them on the market when the home appreciated a crazy amount in 6 months during the bubble. It was ridiculous and made entry-level purchasing difficult.
I couldn't agree more! It is amazing when you have one or two "Neighborhood Rivitalization Specialists" working in a neighborhood -- it can really drive up (or at least maintain) property values.
Peggy, this is a great term - you should copyright it! I agree with you. There is a big difference between the stereotypical 'flipper' who buys a house and 'renovates' it as cheaply as possible and someone who does it right.
Peggy - A flipper is a relative of a speculator both buy with the intention of making a profit with little or no money or effort of their own going into the property purchased.
Love your terminology for some one who actually does things to improve the workings as wells as the looks of the property before reselling it.
Hi Peggy -- I couldn't agree with you more. Beyond well said. And, you know the next door neighbors are very thankful for this as well.
Wow, great term! Your client definitely went beyond "spackle and paint" before putting the property on the market. Well done.
Peggy, I couldn't agree with you more. Investors who restore and resell for profit are doing a valuable service and deserve better than pejoratives.
AHHHH . . . you beat me to the punch! I have a blog started, saved to "draft" "Flipper vs. Rehabbing" I'll still post it, but put a different angle now that your great post is featured!
You are absolutely right, with all of the foreclosures out there, we should be thankful for someone returning a better product to the market. Love the post.
I love this term" neighborhood revitalization specialist" ... they have social responsibility.. I really don't like flippers... I have run into too many of them... just paint and hide... and move on!
I have always felt that investors can bring value to a neighborhood by rehabbing run down properties. You've definitely given them a must more positive label.
Peggy,
NEIGHBORHOOD REVITALIZATION SPECIALIST!
Love it; I'm going to use that phrase.
Most of the time we say labeling is disableing but in this case Maybe labeling is enableing! Tell him to keep up the good work.
Peggy, that's a great way of describing the process: whole neighborhood profits if houses are brought back to life!
Also, a revitalizing specialist should have mastered a set of skills that only appear easy, but in fact are not, so all the profit s/he gets from the sale is well deserved.
Right on Peggy! I like that... Neighborhood Revitalization Specialist...
Ya know... in our neck of the woods at Ground Zero... I've seen "Neighborhood Revitalization Specialists" adding value to a neighborhood.
People (and agents) need to understand the difference between a "Speculator" and a a "Neighborhood Revitalization Specialist".
The REALLY SAD PART... is that these people taking the risk and enhancing values are getting no True Tax Credits for taking the risk they are taking.
I think that is a great point. I am going to start using that term. I know exactly what you mean about "flipper" getting a negative connotation.
Peggy:
The term "flipper" does have some negative images attached to it. But, not without reason. Some of these investors do simply fix up the cosmetics to make a quick sale. If your client is truly renovating then he is providing a valuable service to the community.
I love my new title. . done two this year and I feel much better.
Can I steal your phrase too? . . maybe I 'll shorten it to NRS
Thanks for sharing Peggy, you make an excellent distinction that I've been targeting for some time. I'm going to re-blog this too, it's great.
Rock on Peggy ! I could not agree more ! Investors take risk and the good ones help make the neighborhood and communities great. You make an excellent point. We work with many "NEIGHBORHOOD REVITALIZATION SPECIALISTs" in Philadelphia as well ! They are a pleasure and honor to work with ! ~ Chris
Peggy, there is a great distinction between the two. Thanks for pointing out the difference. Great term!
I love your spin on that! I have a client who took a bank foreclosure that had been TRASHED and totally rehabbed it as well. The kitchen is incredible! Wow.
I like your terminology.
Very good post.
As others point out, the term "flipper" is often misused. What you're describing is a good rehabber. A rehabber will spend several months on the entire process, often sinking $15,000-$50,000 or more into a project. That's not a flipper.
A flipper is someone who controls (not even necessarily buys) a house, then sells it (or the contract) to someone else. A flipper puts little or no money into the property. He/she spots a bargain, puts it under contract, then finds someone else who (with the flipper's fee) still considers it a good deal, and sells the property or assigns the contract to that next person.
So, is the flipper, as defined here, bad? No. Not necessarily. A lot of rehabbers get their properties from flippers--more commonly termed "wholesalers" in the investment community. Maybe yours did. For an assignment fee--often in the range of $10,000-$20,000, the wholesaler finds the deal, negotiates the deal, gets rehab estimates, puts it under contract, and presents the entire package to a rehabber. It saves the rehabber the time and effort of hunting down deals, getting preliminary estimates, negotiating, etc.
Together, they're helping to revitalize neighborhoods.
I agree whole heartedly! We should be grateful for the investors that are taking the risk in a scary market.
"NEIGHBORHOOD REVITALIZATION SPECIALIST" That's great!!
Anyone who improves homes in a neighborhood deserves praise...and a profit. While flipping has a negative connotation because people bought homes during the boom and resold after making no improvements, I think the term will come back in a positive light. There are a lot of investors doing good things these days.
Good post!
Just love the name! Some how these investors have gotten a bad name over the last few years. Maybe the idiots on TV? But if most first time homebuyers don't want the hassle of doing it themselves - this is the other option for them! They are always the most popular to show & always viewed as the #1 choice. What the house is telling other sellers in the neighborhood is - look this is what I want as a buyer! Does your house look like this?
Great use of SPIN. I will certainly change my vocabulary to include my new favorite term Neighborhood Revitalization Specialist thank your for a wonderful post.
This is a great title to use and I plan to use it. IMO that is just what they are.