Q & A Saturday – Why are Home Renovation Shows So Fake?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Why are Home Renovation Shows So Fake?

Reality TV - Fake Real Estate Reality TV

In this video Shaun discusses some of the ridiculous things seen on many of these TV shows.

 

Some of the main points covered in this video are:

1)      The 3 basic types of home renovation shows

2)      Some examples of why they can be pretty unrealistic

3)      What are some obstacles a home buyer can face trying to follow the formula

 

Many “reality” TV shows around home renovations can be fun to watch.  However most of them are pretty ridiculous in terms or how things work in the real world.  There are 3 basic types of these shows.  The first are the basic home renovation shows where someone that owns a home wants to do some kind of updating.  While these can have some stretches of reality they are fairly benign.  The 2nd type are the ones that show what it is like for investors to work on properties to renovate and resell.  I can say without a doubt that these are highly sensationalized and at best leave out HUGE amounts of detail to really understand how that business works.  Today the video discussed the 3rd type where someone is buying a house with a certain budget and instead of buying a finished home they buy a fixer upper and spend the difference in the purchase price and the budget on the renovations.  There are several shows with this basic formula.  I think these are the most dangerous for people to get seduced by.  While it is possible to do projects like they show (with some more realistic budgets and timeframes…) they do not go though the MUCH more complicated process that would go into buying the house and funding the renovations for it.  In short unless you are buying with cash it is not the same process as just buying a finished home.  There are loan products that do exist for someone to buy then renovate a house, but they are limited and there are many additional requirements on top of the normal loan requirements.  If you do not use a special program then you need to have all the money to fund the renovations after purchasing the property.  For example you have a $400K budget but buy a house for $280K and plan to put $100K of renovations into it.  If you are not using a special program then you need the $100K for the renovations in addition to the down payment and closing costs required to purchase the house.  Oh and that is assuming that the house is in good enough shape to qualify for the loan before doing the renovations.  So while these shows can be fun to watch think about them being as close to what your home purchase and renovation will be like as the Amazing Race resembled you last vacation.

 

Do you want to sell a house that is a fixer upper?  Do you need to sell a house in Massachusetts or New Hampshire and can’t wait to HGTV to come though?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          If you want to sell a house this winter in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Reality TV via RaeganHuston.com)

 

 

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