07/14/2016
Generally speaking, there’s two drivers or reasons the of a property will increase in the short term: either the legal or the physical characteristics of a property are changed having the effect of improving the value of a .
Legal characteristics refer to legal ownership, or the owner’s rights to use, develop, change or sell a . A negative covenant or restrictive provision in a deed reduces the value of a . A lien or a cloud on title reduces the ’s value. An easement could also limit the value of a . If a improves the marketability of title, or gains approval from governmental entities to amend or remove a restrictive provision regarding the ’s rights, the has improved the value of the property before anyone lifts a hammer to make a physical improvement.
According to RealtyTrac, there were a 179,778 residential flips in 110 U.S. markets in 2015. That’s a big number, and it’s also the highest number of residential flips in a decade. Home flips actually exceeded 2005 totals in 12 metropolitan markets; they were 20% higher in Pittsburgh and Memphis, an...