Flipping homes has always been about timing, margins, and market demand. But in 2025, with high interest rates and rising costs, many investors are asking:
Do people still flip homes in this market?
The answer is yes — but not the same way they did during the boom years.
Let’s break down what’s changed, how investors are adapting, and why working directly with FSBO sellers might be one of the smartest moves right now.
The Flip Game Has Changed in 2025
The “easy money” flips of 2020–2021 — where you could buy anything, slap on gray paint and quartz, and sell for $100K more — are mostly gone.
Here’s what’s different today:
- Higher borrowing costs: With rates hovering around 7% or more, short-term financing costs have gone way up
- Construction costs remain high: Labor and materials haven’t dropped significantly
- Tighter buyer demand: Fewer buyers are rushing to buy flips at top dollar
- Longer hold times: Homes are taking longer to sell in many California submarkets
Despite all this, flipping hasn’t stopped. It’s just become more strategic.
What Type of Flips Still Work?
Here’s where investors are still seeing returns in 2025:
1. Light Cosmetic Flips
Homes that just need paint, flooring, and a few updates are still in demand — especially when priced right.
Investors who focus on speed and budget control are still profiting.
2. Entry-Level Price Points
First-time buyer homes under $600K (depending on the area) are still selling — especially if turnkey and well-presented.
Buyers here are less rate-sensitive and more focused on monthly payment.
3. Off-Market and FSBO Deals
Margins are tighter, so buying right matters more than ever.
That’s why many flippers are going off-market or buying from FSBO sellers directly, where there’s less competition and more flexibility.
Strategy Shift: Flipping with Margin Discipline
With less room for error, flippers are becoming laser-focused on:
- ARV comps that are recent and conservative
- All-in budgets that include a buffer for surprises
- Strong contractor relationships
- Minimizing holding costs by prepping to list while finishing punch lists
Successful investors in 2025 are running real numbers — not hoping the market will carry them.
How FSBO Sellers Help Flippers Find Better Deals
FSBO stands for “For Sale By Owner.” These are sellers who list their home without an agent, often to save on commissions and close quickly.
They’re a great match for flippers in today’s market for a few reasons:
1. No Agent Commission Padding
FSBO homes are often priced without that 5–6% markup for commission. That gives you more room to negotiate and build in margin.
2. Flexible Sellers
Many FSBO sellers are motivated by net profit and simplicity. They may prefer an “as-is” deal or fast cash sale over listing with a full-service agent.
3. Creative Financing Opportunities
Some FSBO sellers are open to seller carry, leaseback, or subject-to deals — strategies that are harder to pull off when agents are involved.
Sellers who use ListLean.com are often choosing a smarter, commission-free way to list. That makes them ideal partners for investors ready to move quickly and respectfully.
Flipping Is Slower… But Not Dead
Yes, flips are taking longer to complete and sell. Yes, lenders are stricter and construction delays are real. But the business isn’t gone — it’s just more intentional.
Investors who treat flipping like a business (not a hustle) are still building wealth by:
- Improving systems
- Staying lean
- Building FSBO pipelines
- Honing their numbers
Flipping in 2025 is about buying smart, executing tight, and avoiding hype.
Final Thoughts
So, do people still flip homes in this market?
Yes — the smart ones do.
And they’re working with sellers directly, running better numbers, and being more creative than ever.
If you’re investing in California real estate and want to work with sellers who are also avoiding unnecessary commission, start by understanding how ListLean’s flat-fee system works.
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