Reality TV shows can be fun and entertaining. Unfortunately, when it comes to the “real world” of buying real estate, most reality TV shows are anything but “real.” As a homebuyer or investor, it’s important to realize the true reality of the real estate world. To help with this, Jensen and Company, a local real estate brokerage in Park City, Utah, created the following infographic to show these differences.
Reality TV Myths and Real-World Facts
MYTH: Homebuyers only look at three homes before they make a purchase decision. REALITY: Most homebuyers look at many more than three homes.
MYTH: The homes being chosen from on TV are still for sale. REALITY: Most homes that homebuyers look at on reality TV shows are already sold and off the market.
MYTH: The homebuyer has not made a purchase decision. REALITY: The home-buying process is quite lengthy, so TV shows choose homebuyers who have already chosen the home they want in order to simplify the process.
MYTH: Real estate agents regularly make six-figure commissions. REALITY: TV doesn’t explain that the listing agent and buyer’s agent split the commission 50-50, split it again with their brokerage, and also pay marketing costs.
MYTH: When you flip a home, your only expenses while you own the home are the price you bought it for and repairs. REALITY: Real estate investors also need to take taxes, insurance, utilities, interest, closing costs and commissions into account.
MYTH: You need professional help, experience and power tools to stage a home on a budget. REALITY: There are many things that sellers can do to make their houses more presentable. These include decluttering, putting overly large furniture into storage, and doing a decent paint job themselves.
MYTH: The house should sell at the open house. REALITY: Most homes sell after a scheduled showing.
The “Real” Reality of the Real Estate World
Home buying and selling takes time. Don’t rush the home-buying process or you won’t find the home you’re ultimately looking for.
Don’t forget about taxes and insurance. These can add a significant amount to your monthly housing expenses, on top of mortgage payments and utility bills.
Don’t forget to budget. Reality TV shows pay lip service to budgets but don’t show how to create them.
Make sure you find a good real estate agent. These real estate professionals help you understand the “reality” of your market through competitive market analyses (CMAs) and their years of experience in the industry.