Can I Get A Deal On A Home Like They Do On Reality TV?

Reality TV Deal on a home

Many ask, “Can I get a deal on a home like they do on reality TV?” And the answer is one of the most famous answers in the real estate industry, “It depends.”

Reality TV has brought the real estate industry to the forefront, with buyers, sellers, and investors eagerly watching. As a result, searching for a deal on a home has become the quest of many.

The real estate market has been one of the best we have seen in a while. However, this makes finding a bargain harder. Prices escalate during a hot market, even on the fixer-uppers. This may make it difficult to find a deal that is worth the investment.

Reality TV has changed some aspects of the real estate industry as we know it.

Condition

Buyers expect homes to be immaculately decorated and presented well. Sellers feel the pressure of preparing their homes even to renovate before putting their homes on the market. Find out more about staging a home in this previous blog post.

Vision

Buyers may have difficulty seeing a home’s potential that needs renovation. This is not a new phenomenon in the real estate industry. Many buyers have trouble envisioning the possibilities of a home. We also see this issue in new construction. As buyers walk through a model home, they see perfectly decorated rooms. Walking into a finished undecorated model can feel very different to them. But when they walk into an unfinished model with the same layout, they can’t envision what it will look like finished.

Timeframe

In most reality shows, there is not enough time to show the actual number of homes the buyer looked at before settling on one to purchase. Most of these shows depict the buyer looking at three houses and deciding on the one they want to buy. Statistically, that is not what happens in the real world. It would be fantastic if that were the norm. Several factors can affect the time it will take to find a home. The number of homes may vary depending on the local market, the time you can dedicate to looking, and the number of buyers looking for similar homes.

Finishes

Many buyers expect homes to have high-end finishes due to the television shows they watch. The type of finishes in a home can depend on the age of the house, the length of time owned, what is typical for the neighborhood, and other circumstances. Reality TV can lead one to believe all sellers update their homes.

Location

You have probably heard location is important. Location is vital for many reasons. If the home’s location is in a down-turning neighborhood, it may be a bargain but not a good investment. If a house is in a desirable area, the cost may be much higher. Often buyers will decide to move further out than the initial area they choose. If a long commute is involved, it may quickly become a decision they regret. 

Budgets

Budgets for renovations are not always accurately depicted. The television show can often get materials at lower costs than the average consumer. Local markets may also experience different contractors’ fees, inspections, and building permits. This article by Ramsey Solutions provides a guide for renovations. It is wise to obtain estimates for any anticipated work you would like to do to a home before purchasing.

Geography

The area of the country you live in will dictate the affordability of homes. If you are looking to find a home in a high-cost area, you will have to spend more on housing costs.

Investors are also affected by reality TV’s depiction of getting a deal on a home to flip.

Some shows falsely depict the possibility of purchasing, repairing, and re-selling a home in a matter of weeks for incredible profits. Unfortunately, these shows are very appealing around the globe to folks who want to become investors.

Although many viewers can accomplish these renovations, television does not accurately depict how hard the work may be. There is a lot of blood, sweat, and tears to complete a project successfully. Also, they rarely show a renovation that was a complete frustration or failure for the investor.

By no means is every project doomed to failure. But, things may not be as rosy as television makes them appear. Flipping a home requires a lot of hands-on work or a large budget to hire the contractors to do the job. It is hard to realize how much work goes into renovating a successful house flip. 

It is possible to turn a substantial profit in a relatively short amount of time if you keep your cool, use your head, and buy and sell in the right conditions. The problem is that many people do not consider the big picture and find themselves in over their heads and out of money before the project is anywhere near completion.

The popularity of these television shows has made the competition for flippable homes more fierce, making it difficult to find a deal on a home. The early bird in this business gets the worm. The cheapest houses are not always the best candidates for a flip. The apparent goal is to buy low and sell high. Right now, the problem is being able to buy low. 

Television has dramatically changed the way people invest in real estate.

I don’t think we can say whether it has been good or bad for the real estate industry. However, real estate is still one of the best investments you will make if you do your homework and invest wisely.

Fortunes can be made and lost in real estate. The trick is to always place your bets on the right property at the right time. Having the right team supporting you is equally as important. Your team should include a financial advisor, contractors, and a local real estate professional who knows and understands the local market.

Using the services of a real estate professional is important, even in reality TV.

Realtors are used frequently in reality shows to help locate properties, evaluate the feasibility of the purchase, determine a realistic offer based on needed updates, and help determine the final value after renovations.

The interest in these shows has inspired many people to obtain their real estate licenses. 

Although, not all shows accurately depict the real life of a real estate professional. There is a lot of behind-the-scenes work not reflected in these shows to accurately represent the time and effort to make these deals happen. Researching the properties, area, and local trends to identify a good investment is crucial whether the home is for a personal residence or a flip.

Reality TV is great entertainment.

The popularity of these shows speaks for itself. Needless to say, before you start your search for a deal on a home, be sure to do your homework. Work with a professional to help guide you through the process.

If you are ready to find your deal on a home, I can help you.

Contact me, Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. As a Brooklyn real estate agent with over 30 years of experience, I study the local market and trends. I can be reached by phone at (718) 253-9500 ext. 1901 or by email at [email protected]

Charles D'Allesandro

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