IRVINE, CA—In the best US markets for flippinghomes, properties were purchased at double-digit discounts belowmarket value, according to a new report fromRealtyTrac. The firm found that in the secondquarter, on average flippers bough properties for an 8% discountbelow their estimated market value and resold them at an average 6%premium above their estimated market value.

In most cases, in the best markets for flipping, properties weresold at a premium above market value. One exception wasChattanooga, TN, where flippers sold the flipped properties at adiscount, but they still made a hefty profit on average because thediscount they purchased at was so much more than the discount forwhich they sold.

Interestingly, home price appreciation helped out the flippersin almost all of the best markets as well as the worst markets.However, the difference is that in the best markets, the flipperswere more successfully able to buy below market value and alsoevidently add value, therefore selling at a significant premium inmost cases.