What Popular Shows Don’t Tell You About the Real Estate Market

Rose Morrison

Oct 31, 2024

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When you watch HGTV, you may envy the quickness of buying a home. Wouldn’t having your next house or renovation completed in a half-hour would be nice? While the shows are easy to watch, they’re not necessarily realistic for the modern real estate market and the factors affecting it. Here’s a guide to clear the confusion.

What TV Shows Don’t Tell You About the Real Estate Market

“Love It or List It” and “Property Brothers” are solid entertainment. However, you shouldn’t rely on them to understand the real estate market outlook. Here are five things you might not know from watching HGTV and other networks.  

1. Real Estate Market Conditions 

First, you might not accurately grasp the real estate market conditions based on the shows. These programs often depict a rosy environment because of the entertainment value. Would you watch a show where every homeowner loses money when they sell their home? 

HGTV shows likely wouldn’t film in locations where home values are rapidly dropping. For instance, Naples, Florida, is a populous town south of Fort Myers. However, home values have decreased by 5.9% since 2023, demonstrating a changing market in south Florida.  

2. Realistic House Hunting Process

Man holds keychain to a house

Shows like “House Hunters” depict couples choosing among three houses. By the end of the program, they’ve selected their new forever home they’ll love forever. A more realistic depiction is the buyers have bought a house, and the other two are filler. 

In reality, house hunting could take months or years. You may have to sell your house before moving into a new one, adding another wrinkle. Then, you must deal with the sellers rejecting your offer or somebody outbidding you. 

3. Time Requirements

If the TV shows told the whole story, they’d need another hour or two to walk through the process. These productions have tight schedules, so they employ numerous contractors and laborers to get the job done. Additionally, they may have resources to expedite permitting.

In reality, it takes a while to get things moving. Time is one of the most significant factors affecting your success in the real estate market. Census data show that 1.4 years is necessary to build a home — double the number in 2012 and 2013. 

4. Payments and Fees

Another unrealistic expectation is the payments and fees incurred in the real estate market. On the TV programs, you typically see the home price and repairs. However, there are a lot more payments you must deal with, such as home insurance and property taxes.

Don’t forget about escrow, which can become a significant cost if you don’t prepare. Experts say escrow averages around 2%, depending on the home. For example, a $400,000 home may require $8,000 in these fees. 

5. Extensive Delays

Positivity is integral to the entertainment value, so you probably won’t see much conflict. However, delays are significant factors affecting the real estate market. Common delays may include red tape — such as waiting for a permit or appraisal — though they could be innocuous issues. 

For instance, the previous owner may have a lien on their property. Therefore, they won’t be able to sell it until they’ve cleared up the issue. Another minor issue could be the bank wanting more financial information before approving the loan. 

How to Prepare for Any Real Estate Market Outlook 

While the shows have some value in the real estate market, they are hard to replicate. Therefore, you should have a solid plan when searching for a home. What can you do to ease the process? Here’s how to prepare yourself for any real estate market conditions. 

1. Build Your Credit Score

Person using their laptop and holding a credit card

Your credit score impacts your ability to get loans, whether a mortgage or a car payment. If your score is high, you can get lower interest rates and more favorable terms. However, a lower one could prevent you from getting a loan at all. How can you improve your score?

Building your credit score depends on your history, though some common tactics can help. Start by paying off your debt, especially if it has a high interest rate. Prioritize on-time payments and limit your credit usage to make yourself appealing to lenders. 

2. Get Preapproved

You need to be in a strong position when you approach the seller. Loan preapprovals give you an excellent head start because they strengthen your offer. Suppose the bank or credit union says you can afford a certain amount. In that case, it shows the seller you are serious about purchasing their home. 

If you’re not buying a house soon, getting preapproved is still wise. You may need to move or purchase a home with little notice, so having this document on your side is advantageous. Preapprovals can temporarily affect your credit score, so don’t worry about a slight drop.  

3. Do Your Research

Deciding on a home isn’t a 30-minute process. You need months to get everything together, file your paperwork and go house hunting. Research is integral to the last step if you’re searching for your forever home. Without it, you could end up with more trouble than you can handle. 

Real estate agents are your best friends when searching for a home. With these experts, you’ll know more about a specific property and the surrounding area. The best real estate professionals understand the market and help you navigate the challenging conditions. 

4. Hire a Home Inspector

Another aspect you might miss on reality TV shows is hiring a home inspector. If you like a home, you don’t have to make an offer immediately. In fact, you shouldn’t before asking this professional to examine the house. They’ll find defects that the seller must address. 

Imagine you found a home for a great price in a safe neighborhood. While you have tunnel vision, you realize you need an inspection. Upon the review, the house has roof damage that could cause issues later. Roof repairs can cost up to $8,000, so it’s good you paid for the inspector. 

5. Give Yourself Flexibility 

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The price tag of a house is the primary thing your mind focuses on. However, it’s not necessarily the final price of the purchase. Once you’ve set a budget, it’s wise to find houses within the set range and give yourself flexibility. You may need extra money for various repairs and expenses. 

For instance, suppose your budget ceiling is $350,000. If possible, your house hunting should include homes in the $300,000-$325,000 range. With a $25,000 gap, you have more room for repairs and other renovations necessary for the home. 

Understanding the Real Estate Market in 2024

TV shows and movies have depicted real estate market conditions through an entertainment lens. While they create fun programs, these shows could generate unrealistic expectations for buyers. How can you prepare for the modern housing market? Speak to real estate professionals in the area you want to buy a home. Their expertise is unmatched, regardless of your industry knowledge. 

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