HGTV is so fun to watch! But most of the shows are not a true reflection of a day in the real estate life. You look at far more than 3 homes in most cases, you don’t earn $60k on every flip, and not every homebuyer has a $150k reno budget! *insert hair flip emoji* Maybe some of these things are true in Miami Beach or San Francisco, but it just isn’t true in our local St. Louis market.
House hunting
We show the typical buyer more than just three homes. While there isn’t an average number of homes that we see with our clients per se, it’s often far more than three. The better you know yourself and what you’re looking for, the better we can serve and lead you, and the fewer frogs we’ll have to kiss to find your prince! (Hint: your prince is that DREAM house!)
Flip profits
A $60,000 flip profit would be neat, however the numbers simply don’t magically work on every home you see. ARV, or after repair value, is determined by the market. Improving a home does not imply that buyers will come and pay a premium. Do your research, and have a trusted real estate expert on your team to help you determine realistic valuation numbers. For most, real estate investing isn’t a get-rich-quick scheme.
Renovation potential
It is true that homes in need a little elbow grease can often be purchased for a discounted price; however we’re realistically working in the ballpark of $5-20k in upgrades. Homes that need full remodels (think tearing down walls, rewiring old electric, remediating mold) don’t seem to fit the needs of today’s average buyer. Unfortunately, most of us don’t have Chip & Joanna Gaines as family or friends!