Spike in 'Flipping' Homes Sends Housing Market Sky Rocketing

Buying, renovating, and selling homes within months is a quick way to make big bucks.
2:35 | 07/25/13

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Transcript for Spike in 'Flipping' Homes Sends Housing Market Sky Rocketing
Our real money team saving american families thousands of dollars and tonight we keep going. What about this housing market suddenly coming back to life? Abc's chief business and economics correspondent rebecca jarvis with three simple tips to suddenly get thousands more for your home. Reporter: Dave seymour is famous for turning homes like this -- into this. A former firefighter who started flipping at the very moment moment values were cratering. He now has a dozen homes under way and his own reality show. Whether fear is the dominating emotion in the market place, it creates opportunity. Reporter: But that fear is quickly becoming a thing of the past. With a flipping renaissance under way, the market starting to resemble its hey day, now on track to hit record highs this year, up almost 20% from last year. You got to know what you're doing. If you're just doing onesies, twosies a year, and you're playing at this thing, you can get seriously hurt. Reporter: Nationally, flippers are making an average of about $18,000 a sale. Seymour says he shoots for 20% profit on each house and generally spends about four months from acquisition to sale -- $200 makes this room pop. Reporter: But they're not all winners. There are unexpected costs? There are always, always surprises. Sometimes I do a little bit better. Sometime I don't do quite as good. Reporter: What was the biggest money pit you got yourself into? Septic system. It ended up being a $45,000 repair. Reporter: As for this home in east boston, after just three days on the market, it sold for $285,000. A $60,000 profit. Good news for seymour, and the neighbors. It's an economic stimulator in and of itself. Because it's properties that move our economy. Real estate is what moves our economy. That is some return on investment. He said all it takes is a $200 investment and you get a bigger return. Small things can create a big impact in the sales price. Tip number one, put $250 into new crown molding in a room. It can dramatically increase your price for sale. Also tip number two, put in a new front door, it's the first thing people say, dramatically ups the curb appeal. And when you're lifting that home, tuesday nights, 5:00 p.M., create some frenzy with the listing. Monday is too early. Exactly. Thanks, rebecca. Speaking of money, change in store for the game monopoly, no

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