"Flipping" a home is when you purchase property as an asset then quickly re-sell it for a profit. There are different types of flipping. Generally, flipping is legal. However, there has been an increase in illegal flipping. This is when a recently purchased property is re-sold for an inflated value. Usually only small cosmetic improvements have been made before re-selling it. This scheme involves the appraiser, a mortgage originator and the closing agent. The real estate appraiser is the key player, because for this scheme to work the property has to be appraised for more than it is worth.
The Uniform Standards of Professional Appraisal Practice governs real estate appraisers. If you suspect a flipping scheme you can contact them before making any real estate decisions.
photo credit: (Bill and Mavis) - B&M Photography "Flipping" a home is when you purchase property as an asset then quickly re-sell it for a profit. There are different types of flipping. Generally, flipping is legal. However, there has been an increase in illegal flipping. This is when a recently purchased property is re-sold for an inflated value. Usually only small cosmetic improvements have been made before re-selling it. This scheme involves the appraiser, a mortgage originator and the closing agent. The real estate appraiser is the key player, because for this scheme to work the property has to be appraised for more than it is worth.
The Uniform Standards of Professional Appraisal Practice governs real estate appraisers. If you suspect a flipping scheme you can contact them before making any real estate decisions.
photo credit: (Bill and Mavis) - B&M Photography 
