You are probably reading this blog to find out just how ridiculous it’s going to be. If you are a rehabber, real estate agent, home stager, or involved in marketing real estate in any way, you might want to read on!
When my family began real estate investing, we were completely dependent upon a Realtor that we hired to find us good deals. Do you know what that meant?
We found out very quickly that finding a house to fix & flip through the open market (MLS) was difficult if you wanted to make a decent profit. Well, we did want to make a decent profit! After watching hours and hours of “Flip That House”, I was trained to expect big profits.
Without any marketing tools in our hands, we became very dependent on the MLS to acquire houses to rehab. Here is what kept us afloat:
… More specifically, we watched HG TV and any home decorator shows. The revelation that I received and that became one of our greatest assets is this: The lifestyle trends of what people like in their home begins with the TV! Don’t think it crazy. Where do the popular hair-do’s come from? Where are people getting the latest wardrobe fashion trends from? You got it, TV!
By watching and studying home shows and what their designers are pushing, you can learn what the public is going to gravitate towards. From the colour combinations on walls to the texture of carpet to the style of toilet, the information that can be gleaned about what is in style is all right there. You can also learn about the style or age of different houses and the best way to effectively design the remodel.
We learned many things that helped us “press the comps” when we marketed them for sale. For example, we never sell a house with a screen door blocking the front door. We always remove the screens from the windows. By just removing these two items (store them in the garage for the buyer though), we dramatically improve the curb appeal.
One of the best shows to watch as a fix & flip investor is “House Hunters”, where an agent would walk retail buyers through 3 houses before they picked one. You would get to hear their positive and negative feedback on each home. Absorbing all of this information found itself very useful when we would rehab. The end result is that you create an end product that most people are attracted to. Why are they attracted to it? They saw it on TV!
If you want to get every penny out of your rehab, go watch & observe & learn from the ones that are setting the standard for YOUR BUYERS! If your rehab looks like it is out of HG TV, you will maximise the potential of that house.
So, you can blame me when your family calls you a couch potato. Just tell them,
NO MORE MINUSCULE PROFITS!
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