Flipped homes resold for €111,000 more last year
House-flipping is a profitable pursuit in the Netherlands. Last year, flipped homes sold for 111,000 euros more than their purchase price on average, a value increase of 36 percent in less than a year, realtors' association NVM reported on Tuesday.
House-flipping is a practice where you buy a house, renovate it, and then resell it within a year. Last year 560 homes were flipped in the Netherlands, according to an analysis by Brainbay, the NVM's data and research subsidiary.
On average, flipped homes are 6 meters larger when sold again. The quality of the home increased sharply between purchase and resale. On Brainbay's home quality score, a scale of 1 to 6, flipped homes increase from 1.9 at purchase to 5.2 at resale, on average.
The difference in transaction price between the purchase and sale amount is over 150,000 euros. Corrected for the price development between purchase and sale, this amounts to an increase in value of over 111,000 euros. However, NVM added that the costs of the renovations were not considered because the association could not determine them.