Wednesday, April 24, 2013

Should You Buy a House to Flip - "Flip or Flop" HGTV Program Explores


New HGTV Show “Flip or Flop” Premiered This Week 


As we noted here a few days ago, in this crazy real estate market you may want to try and find a fixer-upper.  You might do that as a way to get yourself a nice home for cheap.  Or you may do it for a quick flip.  So enters a new reality show.

First off, the show “Flip or Flop” opens up with scenes from coastal Orange County, Calif. so already viewers feel like they’re going to be privy to a soap opera. Enter a beautiful young couple dabbling in the business of buying and renovating houses for a profit, a practice known as “flipping.” It’s the perfect setting with likeable characters and lots of house flippin’ drama!

But the show can also be a great learning experience for those considering a home renovation or buying a home they plan to renovate for their own use.

Condensed into a 30-minute show, each home renovation goes through the typical highs and lows. The debut show opened with the couple teaming up to check out the house they want to buy at a government auction and heading to the auction without a minute to spare - and without seeing the indoors or backyard of the home they want to buy.

After winning the auction during competitive bidding, the new owners make their first thorough inspection and discover the home is trashed, has illegal additions and features a pool that’s become a musty swamp for tadpoles. Their initial estimate of a $25,000 renovation soon turns into more than $70,000, threatening to wipe out any profit.

“This is a nightmare!” the new owner exclaims at one point in frustration. “This house is a disaster.”

Lessons learned:


1. Don’t buy a nightmare house! You should seriously consider how much money, time and energy you want to invest in a house loaded with problems. Remember that a reputable contractor can help you determine the cost and scope of a total renovation. They can walk you through existing and potential problems and tell you how they would tackle these.

2. Do consider buying a lower priced property that needs a renovation but could become the perfect home for you with the right fixes. Sometimes, it is better to buy a home that needs a renovation rather than buying a higher-priced home that does not need a renovation, but doesn’t fit your likes or needs.

3. Carefully consider your renovation and design choices and make sure you know what you want before it’s too late to make changes. You could get stuck with something you hate. In a second episode of “Flip or Flop,” the couple chooses a new paint color for the exterior of the home based on a few brushstrokes of paint samples that they paint themselves. After the whole house is professionally painted, the couple then stands in front of the house, looking agape at the unappealing muddy brown they chose. They had thought it would be lighter. They end up spending an additional $2,000 to have the house professionally painted a different, lighter color.

4. Admit that there are areas where you are clueless and need the advice of a professional. The “Flip or Flop” couple hired a home designer who helped them envision how structural changes could modernize a home.

5. Take a chance on a home that may be less than perfect. The “Flip or Flop” couple ended up in the black (we won’t say by how much) in both of the first episodes, but the renovation process for both houses was quite patchy at times. Best of all, both homes found buyers who were thrilled with their newly renovated home.

New Contact Information for Bill Rayman

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

424-354-5325

bill.rayman@guaranteedrate.com

Mortgage Los Angeles Offical Website   






Enhanced by Zemanta

4 comments:

  1. This blog about real estate is really great.I really like the information and it's very beneficial.

    Playa Realty Executives

    ReplyDelete
  2. Hello to all :
    We are some of the auctioneers on the show flip or flop !
    If we can be of service please feel free to contact us
    The Weiler group
    8930 mason ave
    Chatsworth ca. 91311 818-349-4091

    ReplyDelete
  3. Unquestionably believe that which you stated. Your favorite justification seemed to be on the web the simplest thing to be aware of. I say to you, I definitely get irked while people consider worries that they plainly don’t know about. Buy you are good!
    Arizona Luxury Real Estate

    ReplyDelete
  4. flip or flop show is such bullshit. They make a shit load of money but every flip, oh we're draining our savings and maxing out our credit cards. This show is such crap!

    ReplyDelete