The need for home inspection services became apparent in the first quarter of 2018, when house-flipping deals reached a six-year high in the U.S.
A building inspection franchise seems like a good business opportunity, but it will depend on a region’s property market. For instance, the top three metro areas for flipping homes in the country are in California, according to an ATTOM Data Solutions report.
Profits and Returns
The average gross profit of flipping a house in San Jose cost $331,000 between January and March, while those in San Francisco and Los Angeles amounted to $149,000 and $140,000. Nationwide, the average gross profit during the period reached $69,500.
In terms of average returns, home flippers in the country saw an estimated 48% yield on a sale. The top cities for average gross returns are not limited to a single state, although two of them are in Pennsylvania. In East Stroudsburg, the average gross return reached 164.1% in the first quarter, while the rate in Pittsburgh was 14.6%. Atlantic City in New Jersey ranked as the third best place in terms of returns with an average of 133.3%.
Strong Buying Activity
A strong demand for homes in other cities could be another reason building inspections need to be faster. This is despite the noticeable trend in buying and selling properties, as Pillar To Post noted.
Home for sale in Seattle disappeared within 36 days in April, making the city the best place for sellers in the country. The nationwide average time for selling a house in the same month reached 64 days, which down from 71 in July 2017.
Americans who want to cash in on the current property trends should consider a home inspection franchise. More people will want to buy homes as fast as possible, while being sure of the property’s safety at the same time.