Realtor.com
The fix-and-flip market is showing signs of a slowdown, which could potentially give the seller’s market another hit it doesn’t need.
Recent data from John Burns Research and Consulting and Kiavi indicate that flippers reported weaker sales in the second quarter of 2025 compared with the first—and even more sharply compared with the second quarter of last year.
For homeowners considering selling, understanding what this means for their property’s marketability is important, especially if you’re trying to off-load a fixer upper.
Fix-and-flip market is on the decline
Just 30% of flippers reported “good” sales in the second quarter of this year compared with the seasonal norm, down from 38% in the same quarter of 2024.
“Economic uncertainty, elevated mortgage rates, and rising resale inventory weigh on demand for flipped homes,” wrote John Burns Research and Consulting research manager Alex Thomas, the primary author of the report.
Rising material expenses due to the new imposed tariffs and a construction labor shortage are also in play, with 1 in 3 flippers citing immigration enforcement as a factor in reduced workforce availability.
“It’s harder to finance flips when rates and material prices rise,” says real estate agent and investor Jacob Naig of Des Moines, IA. “Add to that a deficit of trustworthy tradespeople, and a project can drag on for months—which cuts into profits.”
The report points out that flippers in Florida, Northern California, and the Southwest have seen particularly weak sales compared with other regions as of late.
“They’re high-priced markets where flippers aren’t going to be able to easily turn a profit, and high acquisition and rehab costs don’t give flippers a low-risk investment,” explains real estate expert Ben Mizes, founder of Clever Offers.
Thomas wrote that flippers in these regions face increasing resale supply, significant competition from homebuilders, and rising costs—particularly for insurance.
“When insurance is hard to secure, especially in areas prone to hurricanes or wildfires, buyers hesitate, and it poses an even bigger risk for a flipper taking on the job,” says Cara Ameer, a real estate agent with Coldwell Banker who is licensed in Florida and California.
What this means for sellers
Naturally, a slowdown in flippers looking for properties affects even the average home seller.
“It reshapes the buyer pool,” says Naig. “Sellers who once relied upon immediate cash offers from investors may now have to wait longer for the bid they want from retail buyers.”
Because of this, it pays to be patient, since sellers now frequently have to recalibrate their timelines.
“The market hasn’t just slowed for flippers; it has slowed for everyone,” says real estate professional and attorney Bruce Ailion, of Re/Max Town & Country in Atlanta. “This has resulted in longer days on the market on average.”
Sellers also need to adjust their expectations when it comes to offers and pricing.
“Too many sellers are still stuck on old prices,” says real estate agent and investor Ron Myers of Ron Buys Florida Homes. “They think their house is worth what it was during the boom, but the truth is, buyers are not overpaying like they used to. They’re being way more picky. Now, houses need to be priced right or they sit on the market and don’t budge.”
How to still attract flippers and fixer-upper buyers
According to Realtor.com® data, 13% of homes purchased in 2024 were purchased by an investor, meaning that the majority of buyers out there are still average people just looking for a home. And the good news is, recent reporting demonstrates that first-time buyers are more interested than ever in older homes.
So, despite it being a tough market, there are still strategies that appeal to those buyers, including clear disclosure of home condition and competitive pricing.
“You really have to be priced right, and know the numbers to share with them,” says Ameer. “Do the research to understand what it will realistically cost to renovate the property, and what the after-repair value would be, according to comparable sales.”
Taking the guesswork out for buyers is key.
“Disclose the condition well, emphasize mechanical ages for things like roof and HVAC, and present utility averages,” says Naig. “Transparency saves investors time and gains their trust.”
Investors also value efficiency and incentives in a deal.
“Pre-list inspections, ‘as is’ disclosures, and willingness to pay part of closing costs more than offset today’s financing friction,” says Naig. “Sellers who offer quick possession or tenant-free delivery can help flippers get busy right away.”
When it comes to marketing to fix-and-flip buyers, “network the property to local investor groups and agents that work with investors,” recommends Ameer. “In the listing, use buzzwords like ‘deal alert’ and “bring the toolbox.'”
To make homes attractive to DIY buyers seeking renovation opportunities, Naig advises sellers to “highlight potential rather than perfection.” A tidy, uncluttered home with neutral walls helps buyers picture what they could create and envision the possibilities.