You've probably heard of the term house flipping, which refers to buying a home, doing some renovations, and then putting it back on the market for a profit. House flipping has been around for a while, first becoming popular in the 80s.
In the '80s there was a recession and many homes were foreclosed on. People bought these homes, cared for them, and then resold them when the market recovered. In the '90s reselling became less popular.
The concept of property flipping has been around for around 40 years, but it underwent some significant changes in the 2000s. These days, most people know about property flipping thanks to reality TV, and it's become more popular than ever. This newfound popularity comes at a time when people are more concerned about the environment, which has led to a rise in eco-flipping.
Eco-flipping is simply flipping a home with an eco-friendly twist. The improvements made to an eco-flipped home aim to make it more energy efficient. The goal is to increase the number of eco-friendly homes on the market, which is great for the environment.
This is also great for the home reseller's bank account. A traditional resale home typically brings in a profit of $20,000 to $30,000. Eco resale companies report seeing profits increase by up to 50%.
Looking at these numbers, it's no wonder that many believe eco-flipping is the next big trend in the housing industry.
So what kind of improvements are made to a home during an eco-renovation? Here are some of the most common improvements.
Energy-saving appliances
Not surprisingly, energy-saving appliances rank high on the list: Eco Flippers install Energy Star certified appliances, such as dishwashers, washers, dryers, refrigerators and stoves. These appliances reduce energy consumption by 10%-50%, typically saving homeowners more than $100 a year on their electricity bills alone.
Eco-friendly insulation
While it might not be the most exciting upgrade, insulation also makes it high on the list. Good insulation can cut your home's heating and air-conditioning costs by 40%, help prevent illness, and reduce energy usage. Less energy usage also means fewer greenhouse gas emissions, making this improvement especially eco-friendly.
Wool, denim, and ThermaCork are all eco-friendly options that can be used instead of traditional insulation.
Alternative Energy Sources
Alternative energy sources, also known as clean energy or renewable energy, are often used to power eco flip homes. Common alternatives to traditional electricity include solar power, wind power, and hydroelectric power. Switching your home to these energy sources reduces your environmental impact and your utility bills.
The process of eco-flipping is actually simple, so let us break it down for you so you can get started right away.
First, choose the type of home that is selling well in your area. Look at recent sales trends to pick the type that's right for you. Then, the second step is to choose the specific home you want to buy.
The third step is to get a fix-and-flip loan to buy the home, after which it's just a matter of making some green renovations and putting it back on the market.
If you find a good real estate agent, your property should sell quickly. Many eco-flipped homes sell within a month, so you don't have to stress about waiting for a long time. Once your property sells, you can walk away with a profit, or put that profit towards a new eco-flip project. The possibilities are endless.
There is growing concern about how climate change will affect real estate assets. With rising sea levels in coastal states and increased wildfires, it's no wonder people are worried.
Eco-flipped homes help solve this problem by enabling people to live more sustainably and reduce their impact on climate change, so as an eco-flipper, you should be aware of this as a potential selling point when listing your home for sale.
You should also carefully research the area where you plan to buy to avoid any surprises due to the weather.
Now that you’ve learned the basics of eco-friendly home reselling, you’re ready to take the first step and become a professional eco-retailer.