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January 9, 2018

9 Ways Home Flipping Shows Mislead Viewers

We all know the premise of home-flipping shows: An investor buys a veritable dump and then, with the help of a team of ready-and-willing contractors and landscapers, transforms it into the best-looking home on the block. Next, that intrepid buyer turns around and sells it for a hefty profit. Sounds like a straightforward formula for financial success, right? Well, not quite.

What makes for entertaining television doesn’t always translate into a win beyond the high definition flat screen. The following are nine ways home-flipping shows mislead viewers. So, if you’re considering turning this into your next career or even a side gig, you may want to separate fact from fiction first.

1. Tight turnarounds aren’t always realistic

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In order to realize as large a profit as possible, it’s important to flip the property as quickly as you can, otherwise paying the mortgage, taxes, and insurance quickly chips away at your bottom line. While sales tend to happen quickly on TV, the reality is that even if you have a willing buyer, getting pre-approved and securing the financing doesn’t happen overnight. For anxious sellers, that ticking clock is a constant reminder that every passing day means a little less money in their pockets.

2. Finding a dedicated team isn’t easy

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As far too many homeowners know, not all contractors are created equal. For the most part, the artisans who make their way onto home-flipping shows are trustworthy, knowledgeable and willing to work nearly round-the-clock to get the job done. In reality, contractors may be working on multiple projects simultaneously and may disappear for days at a time. And as we all know, time is money.

3. DIY doesn’t work for everyone

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Part of the appeal of these home-flipping programs is the ease with which the whole property comes together. But it’s more than just the time-lapse photography that makes it seem like anyone with a tool belt can renovate like a pro. While you might be tempted to take a DIY approach to keep expenses low, remember, these people know what they’re doing, whereas most homeowners are experts at other things. Sometimes tackling a task yourself will end up costing you more than if you’d hired the right person for the job.

4. When trouble strikes, it’s not so easy to resolve

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Even with a careful home inspection, surprises (not the good kind!) pop up when you least expect them. Yet, if a sink hole opens and threatens to swallow a sunporch, home-flipping show teams are ready to fix that issue like it’s no big deal. When it happens to non-TV-star homeowners, it’s not always easy to find the right subcontractor — especially when you’re under time constraints. And, once you do, can you even afford to deal with whatever unpleasant shocker has come your way? If you have to go back to the bank for more money, that will impact your timeframe and ultimately your profit. (See number 1.) Home-flippers on TV seem to have bottomless bank accounts. Must be nice, right?

5. Materials don’t arrive simultaneously

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When home-flippers begin a project, all the requisite materials are on-site and ready to go. If only this were the norm! Anyone who’s ever fallen in love with a special order item knows that it’s almost impossible to find everything you like in stock and ready for delivery. Some contractors are reluctant to start a renovation until all the supplies are in, which, again, can hurt your timeline and your profit.

6. The back-and-forth is all done behind-the-scenes

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Never mind the fact that homes showcased on these programs never seem to lack for buyers, in many instances there doesn’t seem to be any haggling to speak of when it comes to the asking price. Leaving out the art of negotiation does viewers a disservice as it makes it appear that buyers can’t wait to pay full price — or above it.

7. The math is fuzzy

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In order to reap the biggest profit, you need to buy below market value, sell above it, and not put more money into the renovation than you’ll get back. As if that equation weren’t complicated enough, on television, you don’t always hear about the costs of buying or selling, inspection and appraisals fees, and other expenses that go into both sides of the transactions. Leaving out some numbers conveniently inflates the profit.

8. Costs vary by area

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Renovating a bathroom in rural Tennessee is going to cost much less than it would in, say, Manhattan. Not only will the labor be less expensive, but the materials and delivery charges will also skew lower in non-metropolitan areas. Of course, none of that is addressed in the show and most often estimates on TV are far lower than those you’d gather in real life.

9. You can over-renovate

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Once you’re in the home improvement groove, you may be tempted to splurge and really go all out, but you have to resist the temptation to overdo it and put in more money than you’ll ever get back. In the quest to make your flip as fabulous as possible, you never want to lose sight of the the reason you started this project: to make money. Consider the return on investment for each improvement you make.

Do you have plans to take on a renovation or investment property this year? If so, let’s talk!

By The Property Geeks
Home Staging Kitchen
November 14, 2017

15 Before & After Photos that Prove the Power of Home Staging

There’s no denying it: Homes that receive effective home staging definitely stand out. Not only does the right amount of decluttering, organizing and accessorizing make your home more attractive, it can actually increase its value.

According to the National Association of Realtors’ 2015 Profile of Home Staging Report, 32 percent of buyers’ agents believe their clients are willing to offer one percent to five percent more for staged homes. What’s more, 81 percent of agents said home staging made it easier for buyers to visualize the property as their future home.

If that’s not enough to convince you, take a look at these before-and-after photos to really illustrate how powerful home staging can be.

1. Cool kitchen

Attractive barstools and place settings make you want to sit right down for lunch! The hardware upgrade on the cabinets makes a big difference too.

2. Dining room do-over

A fresh coat of paint and right-sized furniture create an appetizing room that’s welcoming without being over-the-top. (Removing that potty chair from the picture was a wise move as well.)

3. Room with a view

This living room went from sad to sophisticated with the help of the right furnishings and accessories. Who could focus on that stunning view with those flimsy outdoor chairs in the way?

4. The personal touch

Homeowners are often advised to keep their rooms neutral and remove many of their personal effects. But by adding a few well-placed items to the countertops, this kitchen just became a lot more enticing.

5. The beauty of decluttered space

Organizing and decluttering go hand-in-hand with home staging. It’s a shame to bury a fireplace behind so much stuff.

6. Updated decor

Many consumers have a hard time envisioning themselves in a space if the decor is too distinctive or distracting. Keeping items current and appealing to all is a way to attract as many buyers as possible.

7. Bedrooms don’t need to be bold

While you may love the idea of an extreme shade, not everyone wants to wake up to dramatic hues. In addition to lightening the wall color, moving the bed away from the window enhances the view.

8. Brighter bathroom

Nothing makes a bathroom sparkle like clean, cream-colored walls. Fresh-flowers, white hand towels, and an elegant soap dispenser take this bathroom from drab to eye-catching without any remodeling required..

9. Gorgeous guest room

This stunning space was packed with potential but failed to live up to it. In addition to new chairs, the right lighting and taking the photo from a better angle transformed this room.

10. Wall art adds a wow factor

The right wall hangings can take a room from comfortable to curated with minimal effort.

11. Less is more

Home stagers will often suggest placing some of your items in a storage unit to make your rooms appear more open and spacious. This photo illustrates why that’s such a smart idea.

12. Accent on color

The walls can stay neutral but adding a pop of color through accent pieces like throw pillows and well-placed chairs pull a room together.

13. Let there be light.

This attic bedroom went to dim and dreary to quaint and cozy with the addition of a nightstand and table lamp. The complementary geometric patterns bring interest to the small space without overwhelming it.

14. Empty just isn’t as appealing

Even if an empty room looks great on its own, showing buyers how to show off the space is inspiring.

15. Every detail counts

In case you needed any additional convincing that home staging makes an enormous difference, this montage of makeovers should do the trick.

We hope you agree that staging can take a home from okay to awesome! And if you have questions about selling or staging your home, feel free to give us a call or tune in to Grill the Geeks every Thursday at 12pm CT on our Facebook page.

By The Property Geeks
Why Fall Is Best to Buy
September 26, 2017

Why Fall Might Be The Best Time To Buy A Home

A lot of people think the best time to buy a house is during the Spring market.

And, it is…

…in the sense that more houses are listed for sale in the Spring. But, there’s also a heck of a lot more buyers trying to buy those listings.

The thing is, some of the houses listed back in the Spring don’t end up selling. (Usually just because they were overpriced.)

Now, it isn’t like new listings don’t happen in the Fall. There are always new listings coming on the market. But it’s not like, just because it’s Fall and not Spring, prices are necessarily going to fall. In other words, new listings aren’t likely to list for a lot lower than you would have seen in the Spring.

However, the homeowners who did list back in the Spring are much more likely to be anxious (perhaps even desperate) to sell their home. They’ve created their own problem…they missed the boat by pricing too high.

Which is great news for you, if you’re looking to buy a home:

  • Less competition. (Many buyers stop looking at this time of year…for no good reason.)
  • Motivated sellers. (They’re sick of being on the market, and wondering why nobody bought their house.)

But it isn’t always easy to find those listings. They don’t wave a white flag or lower their price to some ridiculous amount everyone would notice. If only it were that easy…

Just because someone listed their home back in the Spring doesn’t mean they’ll be all that negotiable.

There are certain things a great real estate agent will know to look for.

And we love rolling up our sleeves and finding the ones we can most likely negotiate the best deals on.

So, do you have anything you want us to roll up our sleeves and look for? Real estate deals won’t just fall in your lap, but we can certainly help you find one this Fall.

Bonus
Want another reason to buy a home in the Fall?

You can take advantage of year-end sales to outfit your home!

Hardly anybody buys a home who doesn’t want (or need) to make improvements, however small. So why not coordinate your purchase with sales on items you’ll need? According to Consumer Reports, September is an ideal time for buying carpet and paint. In October lawn mowers go on sale, and the same goes for appliances and cookware in November.

By The Property Geeks
Independence Day, Real Estate
June 27, 2017

What Do Real Estate & Independence Day Have In Common?

What’s the first thing you think of when you think 4th of July?

Probably fireworks, right?

Okay, maybe you think about barbeques, pool parties, or parades first.

The point is, the first thought for most people isn’t about the nitty-gritty that we’re actually celebrating — our independence as a nation.

Deep down, we all know that’s what it’s all about. And we respect it. But, we’re also human. Who can blame us for enjoying our freedom watching fireworks, without giving all that much thought about everything our founding fathers did to get us here?

So it is in real estate…

There’s a lot of focus on the “fireworks” in real estate. The big, glorious, flashy, exciting moments. Like…

  • The moment your house first hits the market.
  • Seeing the pictures of your house all over the Internet.
  • Throngs of people walking through your first open house.
  • Receiving offers from buyers…maybe even multiple offers.
  • Going under contract.
  • Walking into “the” house, and falling in love with it.
  • Making an offer on the house you love, and having it accepted.
  • Closing on the sale or purchase of your home.

All really exciting “firework” moments.

But they’re not the full story. There’s a lot of stuff behind the scenes in order to get to those fun, celebratory moments. A lot of thought, knowledge, skill, and work… Not necessarily fun, or exciting stuff. But it’s all important. It’s all necessary to get to those spectacular “fireworks” moments.

Not that the behind the scenes stuff should be something you think about. As a consumer, you should enjoy the glorious moments. Leave the nitty-gritty to your agent.

Just know that there’s more to it than the “fireworks” you want to see when you buy or sell a house.

By The Property Geeks