Flip Flop This House - TV “Reality Shows”
I have to confess to a dark, secret, guilty pleasure - I have started watching several of the TV “reality shows” where people flip that house! But sometimes I feel like I am watching comedy central instead! I owned a Property Management Company on the Monterey Peninsula so we handled alot of remodels, house maintenance, repairs, etc. It was not an easy process. But since we paid very quickly and were a source of continuing business we got the best of the contractors!
I have been in the Real Estate Industry for over 25 yrs. now. I shake my head in frustration when I see one of the TV flippers buying a house without bothering to get a structural pest control report. I also groan or sometimes laugh aloud at some of the budgets they just pluck out of the air. A guesstimate is not an estimate. Most older homes are going to need new plumbing, new electrical and a new heater.
One of my pet peeves in regards to these shows is that until recently they did not even mention selling costs! In the current challenging market in most areas, you are going to need to figure in a Real Estate commission. There are other costs such as Title Insurance which the seller pays in the Monterey area. A rough estimate for Selling costs aside from any Real Estate Commissions is 2% of the selling price.
My other pet peeve is that all the houses are beautifully staged and there is no charge! Well, I guess if you are on tv, there are stagers who will do it for free. But for those sellers not lucky enough to be featured the cost to stage a vacant home is staggering. I just finished taking the ASP (Accreditated Staging Professional) course from Barb Schwarz. Renting furniture starts at about $1,000 per month - and that’s only a small amount of furniture. Then there is the cost for the staging professional.
Buying a home - to live in, at the right price - if you are going to live in it at least 3 yrs and 5 yrs is better, can still be a good investment! I think “flipping” is now a flop and a thing of the past, and I’m glad.