Hawaii Randy's Real Estate Opinions: Is Television Helping or Hurting Real Estate?

I think flipping shows should be sued in a class action for causing irreparable damage to people unprepared for the reality of the market. Home improvement and staging shows can give good tips as long as you don't believe Clive when he says you will get an offer soon.

I definitely wish some sellers would watch staging shows.

the flipper shows almost never seem to take into account carry costs and Realtor fees. their profit comes down considerably when they add these into the picture. Its seems those who want to flip are the least prepared to weather the storm if there is a problem. Most made money due to a RISING market not because they did it "right". there is a new season of them coming out...it will be interesting to see if they change

Couldn't really tell ya Randy, I don't have time to watch it! Maybe I need to though. Are there any great shows about Title and Escrow? hahahaha!!!   B-)   Aloha my friend! Great post and point!!

Are those flipping house shows old?  I beg to differ that flipping is creating net profit....even here where prices are still high....even investors (real estate agents) are just doing 1031's to sell the old and exchange for a better or in a different neighborhood. (bettering their portfolios)

The staging shows and some of the posts I read here from stagers have given me some great pointers as well.

The insomniacs have watched the infomercials and believed them for decades.  I can spot them when they call and ask for

foreclosures, been on the market for a long time, can be bought for less than market value.

I like the "can be bought for less than market value" the best.

I watched a show where they have an open house with hidden cameras.  Then they show the owners what the potential buyers had to say at the open house when they thought they weren't being watched.  The owners sat down with the host and the host said to the seller's.  "Now, let's see how badly your REALTOR was lying to you."  I almost blew a gasket.  You know how us REALTORS love to write checks for marketing while we're LYING to our clients.  I never watched another home show again on THAT channel.  

I think the flipping shows are good in that they do show the work involved in a rehab project.  The problem is that they spend too much time on drama - I ordered cherry cabinets but they delivered oak, or can we work around the avocado fixtures in the master bath, and too little time on the numbers.  Cost, carrying cost, appreciation, return on investment, cash on cash return, retail vs. wholesale real estate and alternate exit strategies.  What is sad is that 99% of Realtors lack the ability and knowledge to discuss these items with a prospective client as well.  The problem with our market is that these issues were not addressed with prospective clients and customers by either their real estate or mortgage professionals, who were too busy making a quick buck than developing a handful of solid business relationships that would represent their core business several years down the road.

RP,

Like anything else a person must do their own due dil...

Any show that presents a horrible house being turned into a gem in one half hour (I don't care what they say about timeframe- to the watcher, it all occurs in a half an hour) and ends with a picture of the home (but no details about whether or not it ever sold) is irresponsible TV, IMO.  On the other hand, I agree, Randy.  The shows that have provided quick fixes that anyone can accomplish are very helpful in this market, now that fixes are an important part of moving the property.

I would say TV is just that...TV. Nothing more, nothing less. Even news shows are not a fully accurate description of reality. I enjoy the shows for the most part. Take the bad with the good. Just can't take TV that seriously, but there will always be a percentage of the population that does.

I agree that they can make life harder. I tell someone they should do this or that and I get the "But on tv they do this" comment and I want to pull my hair out.

Come on Randy, you mean to tell me that if I buy a house it isn't going to automatically go up in value because I am now the owner.  I mean it is my house now and every body has to want it now :)

People crack me up Randy they buy a house slap a little paint on it and think that others are now going to pay $50,000 more for it.  Boy are they surprised when they are still making the mortgage payments on that house months later. 

Great post Randy!  I actually have been watching some flip this house shows where they show that the home did not sell, or it did not sell for what they had hoped and had to rent it out.  Also there is a Flipper Show where a RE agent pops in and out to see if the Flipper is staying on budget.  I like her honesty and insight that she brings to the Flip.  I do think that the home stager shows have really helped me out.  I appreciate their tips, most of the tips are things that Sellers can replicate on their own.  I have even taken listings where the Sellers have already done most of the staging because of the tips they have seen on TV.  All the best to you! 

Jim - One of the flipping guys got removed from TV when they found he was faking some of the stuff on TV.

John - You are absolutely correct. Most mad it because of the rising market.

Brad - I DIVO them, so I can watch them without commercials while checking Active Rain in the evening.

Sally - I like watching the flipping shows, but I know to keep it in perspective.

Lenn - I have been getting the ones who want to buy note and they do not know what a note is.

Chris - I didn't see that show.  It would have made me angry also.

Dan - That is a disservice to perspective buyers.  I do not want clients losing money.  I give them the good with the bad.

Scott - That is also why they hire us; to help them through the process and to help protect their rights.

Laurie - I have a new listing coming on tomorrow for over $900,000, where I went room by room and gave my clients homework.  They did an amazing job of doing 90% of the items on the list.  That wouldn't have happened a few years ago.

Randy,

I think some of those shows have helped with staging homes, sellers are more aware of what they need to do to sell. :)

Wendy - I have had more than a couple clients reference what they saw on TV as if it was religion.

Cheri - I have to remind people that they are only showing part of the story to make their point.  Now for the rest of the story.

George - The more amazing ones are the ones who think buyers and lenders are going to fall in love with their home and pay much more than any others in the neighborhood.  Even more than the larger and more upgraded homes.

Joy - The home staging shows have especially helped me when I tell a client to depersonalize the home.  I am going out to stage a home tomorrow and most of what I know is from Active Rain and the TV shows I watch.

Suzanne - I think they have made my job somewhat easier with some of my clients.  They are better prepared to put their home on the market.

 

A client said to me, "You're not coming in here and painting my walls orange!" Uhhh, okay, why did you think I'm going to paint your walls orange? "Because that's what they do on TV!!"

 

Beth - I guess purple is out too.  LOL

My favorite was: I was selling a home in Wahiawa and some out of town buyers came to my open house.  She asked, "How close is this to Ohai St?"  I knew what was next.  Dog the Bounty Hunter said Ohai St. is the most dangerous Street on Oahu.

Sell this house interviewed 2 of my sellers for their show (not sure that's a compliment)!!  I told both of my sellers... If you say "my agent never mentioned that" to any of the staging, cleaning or de-cluttering suggestions I have been harping on you about for months, I may have to kill you! 

Neither of them were chosen, so I guess they weren't "THAT" bad.  On the other hand, I agree with EVERYTHING you said.  The flip shows never take into consideration the sellers holding or selling fees.  But I still record & watch them as often as possible.

Hey Randy,

I know what you mean..flipping can be deadly if you don't know what you are doing. I have been lucky enough to have done well with it. By the way...I am going to be interviewing a well know person from one of those shows about flipping property. ...stay tuned!

Randy, I think overall they do help us. Even the flipping shows often show the pitfalls of not listening to the experts, like us. And I do get a certain amount of satisfaction when they disregard pricing advice and on top of that try to sell it themselves. I love the one show that shows the weeks passing while graphically showing the profit drop further and further. I do think that often we can point to these shows where the sellers are making critical mistakes and point them out to our customers who are doing the exact same things. The shows I do not like are the ones that are more staged. Forget the one that Bravo had a while ago out in California. The agents were more actors than professionals. I seldom dance around my Porsche. The other is the self-serving guy from the Carolinas who thinks he is the next television star. I am sure a lot of that is contrived as well. But overall I think the other shows do help us prove crucial points to our sellers.

Randy -

I agree. The flipping shows always show how easy and even better they show the easy math with a huge profit. They don't allow closing costs, etc.

Randy...

Gee and I thought the flipping houses shows were much like reality TV :)

P.S. You know me...I won't be flipping your words to make them mine. SVW.

TLW...ROAR!

My problem is I never watch TV myself, so I don't know what my clients are talking about when they refer to shows. Any suggestions on dealing with this problem?

 

 

The staging shows do seem to make my life easier in this market!

Randy, well put my friend.  I have had a few people call me wanting to know how that can buy foreclosures and "flip" them as those television programs suggest is so easy.  Having sold foreclosures for over 20 years with very experienced investors, I go through the process and tell them what is required.  After my discussion with the 9 out of 10 decide it is not for them.  Leave it to television to entice people to want to tackle almost anything.  Have a great evening and week ahead.

I'm glad that some shows have a "Flip-file update" - showing the property flippers 6mon-1year later.

Many of them actually never sold their house at their listing price, so their "projected profit" they state at the end of the original show doesn't stand.

In fact, a lot couldn't sell their home and resorted to renting out the property.

I feel that the real estate home shows like Flip This House & Buy Me show how people slap some paint on their home and do some minor cosmetic changes and then an open houses sells their home!  It gives the impression to the viewers that selling homes in this market is so easy with minor updating and sticking an open house in front of their home.  Think again!

Michael Citron With Web Email Flyers

I enjoy watching infromertials and "Making Money Fast" Programs in Real Estate as I eat and fall asleep.  I'm a big fan of having nightmares:-)

Seriously though Randy, I'm with you....I think both as well.  As long as our industry is on T.V. in some facet, it probably always be a mixed review.

I seriously just watched my first flipping show, It was one from down in Florida.  What I learned is to listen fo the advice of the professional.  Life would just be so much easier if our customers did!!!

One local "investor" here in the Atlanta area got in a ton of trouble for his dealings.  A&E didn't seem to catch to much heat but I have noticed on the new episodes they don't seem to say the house is sold until they on their flip file or whatever it is to look back.

 

 

I-Team: Flip This House ATLANTA (FOX 5) -- What if you found out an American Idol contestant was lip-synching? What if the Bachelor was really married? How real is reality TV? The FOX 5 I-Team answers that question with one of America's favorite reality shows: Flip This House. Senior I-Team reporter Dale Russell found one Atlanta developer on the show, Sam Leccima, wasn't telling the truth about his renovations. Click video for more information. http://www.myfoxatlanta.com/myfox/pages/ContentDetail?contentId=3200981 I-Team: Flip This House, Pt. 3 ATLANTA (FOX 5) -- It was the story that had them talking and blogging across the country. The FOX 5 I-team investigation of the A&E reality show: Flip This House. Web sites, blogs, and reality show forums were all buzzing about how the I-Team found the popular reality show wasn't even close to reality. Dale Russell reports. Click video for more information. http://www.myfoxatlanta.com/myfox/pages/ContentDetail?contentId=3405410 I-Team: Flip This House, Pt. 2 ATLANTA (FOX 5) -- We had so many questions we wanted to ask Sam Leccima. Why did he lie about selling houses on a popular TV show? And why are so many people so mad at him? Dale Russell reports. Click video for more information. http://www.myfoxatlanta.com/myfox/pages/ContentDetail?contentId=3213463

Randy, you are right. There are people that tend to think TV is the "word". I just find it amazing to think of TV that way. I do like the shows best when they are honest about the houses not selling and such.

The problem with the staging shows is the unrealistic budget that they claim the work was done for. The budget never reflects the  labor costs, just materials.

The flipping shows have been a bit of a problem for some of my clients.  With that said I still enjoy watching them.

The shows, the flipping shows, or the flipping clients? :-)

I have honestly not watched much TV in the last 7 years since we got married - but I recently got cable internet with TV as a free add-on.  I'll get to the flipping shows eventually...but who has the time to sit and watch?

Television does not seem to show a true picture of how things are often times.

Sue - One of my Realtor friends was on the show.  She went to the open house.

Neal - Good luck with the interview.  One of the things they do mention is what it takes to get building permits.  I can take months here.  If it is in a planned community add time for that.

John - Most of them are not completely real.  Even the staging show, the people at the open house know they are on the show for the second open house, so they will love it even if the wall is painted orange.

Gary - I have seen a couple of flipping disasters in my community and wondered if they were trying to copy TV and didn't realize the true costs.

TLW - As long as I don't get flipped off, I am happy.  :)

Ann - Watch TV,  LOL

I can live with the shows you talk about - I can usually show the reality of the project - but this morning as I was ironing FOX news was on and some stupid idiot was saying that sellers do not need an agent... I hit the ceiling - plan on writing a few emails explaining what a seller could be held liable for that the normal seller is not aware of - they think it is all about the dollar and forget that there are disclosures, and issues that can haunt a seller

George T - I see the same thing.  I get people constantly asking about foreclosures.  We hardly have any to begin with.  Once they know what is involved most are no longer interested.

Mike F - Even the staging show in most cases says they should be getting an offer any day now.

Jason - I just can't do the infomercials.  I sit there listing all the flaws in their story.

Ethan - The toughest clients are the ones who pay for advice and then don't follow it.

Bob - That is an amazing story.  I watched all of the clips.  Thank you for pointing us to them.

Wendy - I also like it better when they show the mishaps and obstacles they run into.

Kathy - I see that with the flipping shows also.  The prices almost always seem dirt cheap to me.  I am in Hawaii, so things cost more here, but I don't think that much more.

Tony - I do watch them regularly.  I may be better prepared for the clients who take it all literally.

Jeff - I am playing one as I do my Active Rain comments.

Bob and Carolin - They are similar to the get rich quick seminars, only they hit more people.

Thesa - I am happy to hear that TV reports are now real estate experts.  Next week they will be giving medical advice, followed by legal advice.  Isn't TV amazing, how it can take a report and make them an expert on any subject.

Although I enjoy watching these shows sometimes, I think they are a bit unrealistic . The staging ideas are great and sellers should stage, but will that sell your home faster or make you an extra buck - hmmmm iffy. I know a lot of sellers expect a return on all the home improvements they've made, but those home improvements don't always translate into extra $$$$.

 As for flipping - nothing is flipping down here in Florida

Anonymous - If the home is staged properly it will help sell your home faster for the most money.  If the home is dated or cluttered, you will see it take longer and sell for less. 

The problem with media is that, even if they are trying to do a good job, a story almost never goes into any depth. This is especially true on TV. So they end up with a bunch of half-truths and often leave out the information that helps someone better understand an issue.

Randy,

I already spoke with the person before..we are planning to see how I can do it from the phone or via you-tube but I will include the transcript. I'm not defending anyone and I'm sure there is some hype because it is TV but I am going to try to find out how easy people think it really is. I for one have done this over the last few years. Basically it is easier in a crazy market we had but I am sure it is a bit more difficult now. The problem is we only get to see 30 min or so of a process that takes sometimes months and you have to know what you are doing and compensate for possible losses..this is all rthid guy does..he does not sell anything else so hopefully you'll listen in if I get it on DVD or tape.

The national news certainly hasn't helped. Haven't though much about the other shows, and have not heard much about them at the client level... other than for their entertainment value. Norm is fun, though that's about craftwork, and Bob is really fun to watch too.  Really haven't seen these type of shows bring buyers in. But we hope too of course.

 

Steven - very true

Neal - I look forward to the interview.

Gary - I do not get clients from those shows, I do get potential clientes from watching the flipping shows and my clients do reference the staging shows.

I agree about the flipping shows.  It's hard to turn a profit that quickly in reality, especially here! 

Pete - I think it is hard anywhere.  It is possible, but you better be very good and you have to understand all the risks.

I like watching flip this house. I think its funny how they try to make it into a drama. But i don't think tv is hurting real estate cause theres no such thing as bad publicity.

Rick - I think it negatively effects some of the consumers who are made to believe they can make lots of money and never see the truth.