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Hey friends! As promised, here is our first installment of our new blog series: Questions for Chris. Today we're going to talk about the home improvement craze, and why you might be getting in over your head because of what you're seeing on television. Don't worry, you're not alone. Thankfully I was only toiling around with furniture when I first started DIYing and flipping.
What a lot of bloggers and TV personalities don't tell you, is that sometimes doing-it-yourself can cost a heck of a lot more than just buying something in the store. Crafting supplies, paint supplies, etc. can cost a lot of money.There are ways to smartly DIY a project, and ways not to, and I sort of had to learn that as I went. Thankfully, I stumbled on something I really loved to do as a hobby, and was able to make it work monetarily.
Imagine the same way of thinking when it comes to your home? HGTV has set the tone for flipping homes instead of buying turn-key, and that makes sense for a lot of people; however, buying a $50k, 2,000 sq. ft. home in a great neighborhood with a $100k cash renovation budget might sound like a dream, but it's usually just that.
I'm addicted to home improvement, real-estate, and house-flipping shows just like the rest of you, and when I watch them with Chris I end up hearing a lot of, "oh, come on!" and "seriously?!" It's annoying and he's a dream crusher; however, he has bought and sold a lot of homes, been a landlord dozens of times over, flipped homes before me and renovated a bunch with me, worked with construction firms, subcontracted, and sold commercial jobs. He has a lot of experience and so I think you (we) can all benefit from how pissed he gets when television sells people this idealized version of home buying/ construction.
Here are some of the ways in which Hollywood is full of it, and some questions you might need answered:
1. The homes people end up "buying" are always already purchased.
Shows like House Hunters, Beachfront Bargain, Fixer Upper, Property Brothers, Flip or Flop, etc. depict people looking to purchase a home, however they always already own them. They film episodes of shows like House Hunters in a matter of days-- not months-- so the idea that these people are viewing different homes, selecting a home, and then buying a home in one episode is ludicrous.
How long does the home buying process typically take? How about buying and renovating?
Chris: The entire home buying process takes one to four months (on average). Add a few months if you are doing a full cosmetic renovation. Everyone is different. You might find a home and put an offer in on it in one day, but usually it takes one to two months to find that home, and a couple weeks to a couple months to close. It never happens in an afternoon. If you plan to renovate it, well that takes much longer. A cosmetic remodel on an average sized house will take around three months. A standard bath alone takes two to three weeks, and a standard kitchen takes four to six weeks.
2. The other home "options" are usually not even available.
When home "buyers" are looking for a home to purchase they not only already own one of the homes, but also are sometimes living in them. The other homes that they look at are owned by friends, are flips contractors are working on, or are sometimes on the market. They are convenient and so they are chosen, but they aren't actually considered for home ownership by the "buyers."
3. The hosts pictured rarely do the dirty work.
The hosts on home improvement shows, like Property Brothers and Love it or List it, rarely do the work they are portrayed doing. That becomes a lot more obvious when you know the home owners already own the homes on the shows. For example, The brothers in Property Brothers are a realtor and contractor duo, but they were actors first. They are the show's figureheads but local contractors are the ones who actually work on the homes in the show. The one-on-one conversations that are depicted on these shows are not taking place in reality. They are scripted moments on camera to make the shows feel cohesive or drama filled. That doesn't mean the show hosts aren't capable professionals, but it does mislead viewers like you and I who tune-in while they make fake magic.
What is a real relationship between a homeowner and contractor or designer like?
Chris: We're in pretty much constant contact. The projects are constantly evolving, so there are a lot of questions that need to be addressed. Sometimes people will hand over the reigns to a contractor or designer (usually in an investment situation) but even still, there is a lot of communication.
Alyssa: They become my best friends. Just kidding, but we do speak constantly. There are tons of questions going back and forth even with the most trusting clients. We need to constantly be on the same page and offer complete transparency so they are comfortable.
4. Homeowners don't actually keep the furniture.
On shows like Fixer Upper, where the entire house is done from top to bottom, the homeowners don't get to keep the gorgeous, high-end furnishings. If they want to keep the furniture they have to pay for it out of pocket. Does anyone know how much that might cost? Crickets? Now there's a great question for moi.
How much does it actually cost to decorate a home?
Alyssa: Most of us simply accumulate things over time. We'll buy things here and there, or finance them, and so we think we aren't spending too much money. We are. It adds up and you would barf if you actually tried to calculate the total.
A lot of decorators recommend spending a percentage of the home's value, like 10%-30%, to decorate a house from scratch. Decorating a typical room on a normal, healthy budget costs around $4k-$15k depending on the room. No, I did not stutter, and Chris read this and thinks that I am lying. Furniture is expensive, but add in textiles, art, finishes, etc. and that cost can soar if you aren't careful.
You also need to take into consideration the type of home you are decorating. If you have more high- end tastes like most of the homes you see decorated on home improvement shows, you could easily spend $40k on a living room. Custom couches don't come cheap, folks. I happen to pride myself on decorating inexpensively. A very budget conscious room, like a bedroom in an average sized home, would cost me around $1,000 to decorate. I use re-purposed furnishings, DIY and vintage art, etc. But if you hire a decorator, be prepared for the room costs to go up considerably. The benefit is that your home is gorgeous and you aren't accumulating mismatched crap over time. The value is there, but it doesn't come cheap.
Here are some excellent articles that back me up!
https://www.houzz.com/magazine/decorating-101-how-much-is-this-going-to-cost-me-stsetivw-vs~27842232
5. Homeowners often don't get a choice in who actually works on their home.
As we discussed earlier, the hosts portrayed in the shows rarely do the actual work. Joanna and Chip Gaines, for instance, are so busy that people on the show are handed over to a design team member and a crew and they rarely ever speak to the hosts. Those crews and designers work under Chip and Joanna so out of all the shows they seem to have the best track record for reality; however, the people featured on other shows have not had great luck. Love it or List it has come under fire for using contractors who do shoddy work, and the homeowners are actually spending their own money on the projects with no say in who completes them. Curb Appeal had controversy surrounding landscapers who built a retaining wall that caused water damage to a property owner's home.
Hiring a contractor and having work done on your home is an expensive process and you need to do your due diligence. It is always important, no matter the cost, to do a ton of research and find someone you trust.
What should people look for when hiring a contractor, and what can they expect to spend?
Chris: A good first impression is really important because you're going to need to have a comfortable relationship with this person. I would place emphasis on finding someone with excellent reviews or references, and a great portfolio.
Standard budget, depending on the size of the house:
On a bathroom? You will spend $8k-$20k
On a kitchen? You will spend $15k- $50k
On landscaping? You will spend $2k- $8k
The sky is the limit if you plan to pick high end finishes no matter the size of the spaces in your home. If you plan to source materials and do a lot of the work yourself then you can save money. That requires a lot of time and energy, though, and most people have neither if they are working full time.
6. Scenes are often scripted, shot with multiple takes, and the surprise element is totally bogus.
Who in their right mind, even on a television show, would just hand over all of their savings and never look back? No one. And if they did, they are probably one of the people who had to sue. No one is surprised when their home is revealed, and no one decides which home they are going to buy over a quick cup of coffee. No realtor on planet earth gets their client what they want 100% of the time, whether it's their home for a bargain, everything on their wish list, etc. The realtors on a lot of these shows get to show homes that are not even available, which is totally not fair to real-world realtors. The homeowners have already selected their house so there is no negotiating any miraculous deals. The scenes in bistros on the beach are fake, and the surprise reveals are completely ridiculous. I am not saying it isn't entertaining, because it is. I don't want Martha to pick the fricking obstructed view home but I do want to watch her think about it and argue with her husband. 'Merica.
Most of these homeowners took a while to buy their home, and most were involved during the entire process of their home's renovation. My guess is that the only real surprise comes when they meet the host for the first time the last day of filming.
How involved are most people in their renovations?
Chris: Very involved. There are times when that's a good thing, and times when that costs the home owner more money. There are usually always surprises during a renovation, which HGTV does talk about but not always in the most honest way. They talk about the huge upsets, which are exciting for TV, but not the little things that happen all the time.
Change orders, for instance. There are a ton of factors that go into change orders, like materials being delayed/broken/discontinued, price changes, clients who might not like something that was installed, etc. These factors cause a ton of stress on the job but they are a reality. The more a client micro-manages their job, the more potential there is for a change order and their budget to increase. Home owners looking to renovate should factor in a 10-15% contingency so they aren't surprised when costs vary or there is an issue that requires more money. Be involved in selecting a reputable contractor, and then let them do their job. A good contractor will keep you informed and on budget.
7. The too-good-to-be-true HGTV Dreamhome is, in fact, too-good-to-be-true.
Most people take the cash price because the taxes and other expenses would put them into major debt. Home ownership is expensive, especially when you are living in a luxury designed smart-home-mansion on the water. If the grand total of the prize you win is a couple million dollars, expect to pay about half that in taxes.
What is the tax breakdown?
Prize winners have to pay federal income tax, state income tax, and local property taxes. The most recent dream home, located in Montana, would run someone about $900,000 in taxes. The cash that they give with the dream home would help offset some of that cost, but only by a third and they would still have to pay day-to-day expenses on that behemoth.
So, if you are anything like me, maybe you had delusions of grandeur: that you could win the dream home and kick up your heels for the rest of your life, or buy a shack and fix it up in thirty days so it looks like Paris Hilton's house (shoot, I'd take her dog's house). Maybe you're slightly more practical and you planned to renovate a home but you weren't sure what exactly was involved. My recommendation would be to do your research, and carefully consider your timeline and budget. If you want your very own dream home, like you see on television, it's going to cost you: either in elbow grease, or cash-money, honey.
We are super excited about this Questions with Chris series, and can't wait to talk to you more about home buying, ownership, maintenance, etc. There is so much wisdom in Chris' cute little brain and I can't wait to share it with you (when he has the time to actually answer my questions). Please let us know below in the comments section if there is something specific you want to know about! I'll make sure we get you answers!
xoxo
Alyssa and Chris (sort of)
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