tacoma home price
Across the nation, the average gain from a flipped home was well over $100,000. (AP)

More money for Seattle home flippers now than at peak of real estate market

You can make more money flipping a home in Seattle than you could at the peak of the housing market in 2006.

According to real estate company Redfin, 2013 was a record-setting year for gains, averaging $113,600 per home in Seattle. That number was $87,000 in 2006.

Troy Martin, data scientist with Redfin, told KIRO Radio they believe the level of activity is a little lower, so people are doing more upscale rehabs and selling nicer homes.

Redfin looked at neighborhoods in each market since 2001 to see where flippers were making the biggest gains and three areas in Seattle made the list: Rainier Valley, West Seattle, and Delridge.

"Particularly in West Seattle, it's been a little less competitive so I think people who are interested in doing some home flipping might have some more options there in terms of finding a property to rehab and flip," explained Martin.

The average gain from a flip in Rainier Valley was $153,000 and in West Seattle, the average gain was $143,400.

That's the good news. The bad news? Those numbers don't reflect the cost of rehab or remodels.

"Those improvements can range from simple cosmetic changes to completely gutting an entire home, which makes it difficult to pinpoint actual costs for each of the homes in this analysis," Redfin noted in the study.

If you're thinking about getting into the flipping game, Redfin agent and experienced flipper Al Medina said it's a lot more work and you take on a lot more risk than what the TV shows reveal.

"Rehabs can range from basic improvements, such as painting, re-carpeting, and updating kitchen and baths to full gut jobs, which can range anywhere from $60 to $120 per square foot," Medina said in the study.

Redfin also determined more individuals are getting into the business, as opposed to banks.

"In 2008, about (75 percent) of these homes that were being flipped were being flipped by banks. That number in 2013 was down about 35 percent," Martin said.

Across the nation, the average gain from a flipped home was well over $100,000. The markets studied with the highest gains are San Francisco, Long Island, and San Jose. Markets you don't want to explore: Atlanta and Las Vegas.


Stephanie Klein, MyNorthwest.com Editor
Stephanie joined the MyNorthwest.com team in February 2008. She has built the site into a two-time National Edward R. Murrow Award winner (Best Radio Website 2010, 2012).
Top Stories

  • Key Difference
    Danny O'Neil says the Seahawks have the NFL's single biggest difference maker

  • Week In Photos
    Incredible images from around the world this week
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.