How Realistic are Real Estate Reality TV Shows? with Kristy Vallee
-This is a transcript from Go Gaddis Radio to listen to the episode click here-> https://on.soundcloud.com/zWhQS
Welcome back to Go Gaddis Real Estate Radio, right here on AM nine 20. The answer. In this segment we're gonna talk about reality shows. On tv. Those that have to do with housing, those who are here for the first segment. You realize my guest in the studio with me this fine Saturday morning is Kristy Vallee, who is the co-owner, my business partner at Modern Traditions Realty Group.
Yep. Our families have been in real estate. I think we determined for 37. 37 years. Yeah. Our families have been in real estate for 37 years, so when we say modern traditions, We really mean we're taking the traditions that have been established in both of our families and combining them in a kind of a modern way.
Absolutely. Yeah. Love that. Love that. Okay, so have you, do you ever watch the the house flipping TV shows? Every once in a while it'll catch my eye, but mostly no. Yeah. So when it does catch your eye wide, does it catch your eye? I used to like the ones that were, um, how much money did they make after they renovated Uhhuh?
Like the flip? Like they flip, they, they'd put it up on the screen. They were all in, um, uh, Las Vegas. Yeah. That guy was in Las Vegas, right? That, yeah. Yeah. He was very entertaining. Yes. Yes. I, I actually like that. Yeah. That was interesting. That was interesting. So, um, I'm not a big. Reality TV show watcher when it comes.
I don't watch a whole lot of TV anyway. Yeah. But I, I'm not a reality TV show watcher when it comes to, uh, real estate because, uh, I don't think I can say it on the air, but they seem like a lot of BS to me from someone who is in the business. It just, in many cases, it just doesn't work that way. Right.
Yeah. So can we kind of break this down Sure. Into some different little, little sections here. So, Uh, this is, uh, Mary and Joe. There are buyers. They look at one house over here. They look at one house over there. They look at a third house over here. They go back to the office. They make a decision and decide to move forward on house number two.
Now, like how realistic is that for, come on, for real. Most buyers are not gonna make a decision that quickly, right? First of all. Right? And they're definitely in, in the Atlanta market, the average showings are way higher than three. They're gonna want to see more than three, just to make sure that, oh, that's true.
They are buying the best property that they can find in the market. Yeah. What would you say the average number of showings are on a home in metro Atlanta? Have you looked at it recently? We, uh, we looked at it recently. You did? On the team meeting? Oh, yes. Do you remember what it was? It's around 15. 15, give take.
Okay. I was gonna guess 12 or 13. So 15 must, must have been a team meeting that I missed. Okay. So you, they buyers, I hate to say this, and this is no disrespect to a buyer. But after three homes, in many cases, the buyers haven't even figured out what's supposed to happen, right? Like they're just trying to, you know, soak it all up and they're trying to figure out the process.
Especially first time home buyers. Their nerves are already shot by by the time you're at three, and they gotta keep going in order to kind of calm things down just a little bit. Now, how, um, when it comes to the, um, the legitimacy of the numbers mm-hmm. That those shows give, Yeah. On a scale of one to 10, 10 being absolutely honest, every single thing they say is right.
One being nothing they ever say is accurate. Where and now we're, we would just be guessing cuz we have no way of verifying. Right. But what would you say, where would you say it would fall on that scale? I think there's a, an area there that could be fudged a little bit. Yeah. You know, maybe 10% off. Um, especially when it comes in, when you're looking at the contractor estimates.
Yeah. When they are doing those fix and flips, you're kind of like, really? Yeah. They only spent that much, or it may be the opposite. Okay. So you think that the amount of money they spent might be off? Right. And I get that and I think because they haven't closed, I think that in many cases, That sales price that they think they're going to get is too high.
Okay. One of the, now the, those are both the same thing? Yes. Meaning the numbers don't necessarily add up, but I'm always amazed they'll say, you know, we bought it for seven 50, but the value is 1,000,035. And like that wouldn't happen in metro Atlanta. Right. You wouldn't be able to get some now unless it was a, a desperate seller.
And so I should say that. I mean, if you had somebody that was totally desperate, Needed to sell this week or next. You could probably get 'em to do it very quickly. So from a pricing standpoint, neither Christie nor I think that the numbers they show on television shows are accurate right now, we have no way of verifying that.
But we don't believe they're accurate, Christie, because she doesn't believe the amount of money they spend on renovations in Cleave because he thinks. The price they're saying they got for it, they might have gotten the price for it, but it's gotta of appraised and you gotta be able to get it closed.
Yeah, so those are, those are issues as well. How about the condition of the homes? In many cases they look like Mac Daddy. They look amazing. Well, you know, many times. The photos that a lot of real estate agents put out look amazing. And then you go to look at the house in person and it may not look exactly like that.
Yep. So just like tv, they can shoot different angles to make the house look better. Mm-hmm. Than it actually appears to be. Make the master bedroom look like half the size of a football field. Absolute, absolutely. When in reality it is. And it can make the renovations seem like they're perfect. Yeah. Right.
Yeah. And there may be little things that once you're in there, you can see maybe didn't get finished all the way. Yeah. So when I have watched those reality TV shows in the past about flipping houses, um, at least since 2004 or 2005, I have always known absolutely positively for sure that the home was not fully finished.
Now you wanna know why? I know that? I don't. I don't really know that, by the way. So it could be that they are finished, but my default position is no, they're not fully finished because there was a house somewhere. Down closer to the city of Atlanta, and I showed that house to a buyer in either 2004 or 2005.
Okay? And it was on a reality TV show. Okay? Shot right here in Atlanta. One of the first ones out of the gate. I don't want to use the name right, because when I used the name before I got in trouble for saying the name of the show and the front of the house and the right hand side of the house. Gorgeous.
Immaculate front yard. Amazing. You walked in. Now the house was, I'm gonna call it a little bit circusy because. You have this simple small house, and then you had the most amazing kitchen bar island. It looked like something straight outta Germany. It was unbelievable, but it was just, it wasn't right for the house.
Mm-hmm. But it was really amazing. And so the house was fine. The master bedroom was amazing. The secondary bedrooms were amazing. Or the primary bedroom as we're supposed to call it today. I went out in the backyard. Nothing. Nothing. They had done nothing in the backyard and the back of the house was not even the same color as the front of the house.
And then, so if you're facing it from the street, the front and the right side looked great, but the left side and the. Facts. So my guess is you said, Hey, based on the camera angles, you can make it look however you want, right? Absolutely. So my guess is they kept the cameras to the right side of that house as they filmed.
And so when I see stuff on tv, I just don't necessarily believe it. Yeah. Now in, by the way, if you've just joined us, you're listening to Go Gaddis Real Estate Radio right here on AM nine 20. The Answer. I am Cleve Gaddis. I'm the host of this show, and I'm joined in the studio by my business partner Christie Vallee.
I'm having a good time having this discussion. Yeah, thanks. It'd be interesting to know what listeners thought, right? They wanted to go to Go Gattis radio. Just click on Contact Us. I'd love to share some of those thoughts. Do you think the reality TV shows are real, or do you think as Cleve thinks that the reality TV shows are a little bit B and a little bit s?
Yeah, and that is a wonderful, wonderful combination. Okay. Million dollar agent. Okay. Los Angeles, right? All right. I mean, like, I, I can't, there's, I can't, there's different cities. Yeah. Oh, there's New York too. Yes, there's, but is there more that Miami New? I think there's Miami New. Okay. New York, Miami, la, the ones I know.
New York. Okay. I love the characters on the, the new. I said I never watch reality TV shows, but I think I might have over time. Um, and, and, but the one I'm thinking about is la. Okay. And so all of the agents make a million dollars a year. Okay. I'm sure. Dollar agent, they're making a million dollar listings, so I don't believe.
That the way they show real estate happening is the way it happens. Everything seems easier. Do you agree with that? Well, you know, one, we don't typically try to negotiate a deal all the way out in one phone call, and, and typically that just doesn't happen. It includes more than just phone calls. Oh, yes.
So that's the way I think it happens. Hey Christie, this is Cleve. I'm calling you about the 52 million house. On the hill underneath the Hollywood sign. And um, my seller says, he'll, he'll drop the price $50,000. And then on this show you go, oh, okay, that'll be great. We're ready to move. We're ready to move forward.
And it's just not the way it works. No, it's not the way it works. Can we change subjects for just a second? Absolutely. So what is reality? In terms of negotiating from a real estate standpoint, like how, how for, for someone who doesn't understand negotiations in real estate, what do they need to understand about that?
First of all, we would never write an offer before we even went back to the MLS and pulled all the comps and, yeah. Helped our buyer understand what the true values are in the area. Mm-hmm. Um, so I don't think we see that a lot on Right, on those shows. Right. And then the other key component is, Everything is in writing.
Yeah. So that makes a big difference when you're going back and forth. If you misunderstand something from a phone call, um, that can really mess the deal up versus if you actually have it all in writing, and there's so many misunderstandings when it comes to negotiations. Real estate agents get their feelings hurt.
Oh, that too. Which doesn't make any sense to me. This segment of the show is brought to you by John Birchfield and Capital City Home Loans. John makes it his mission to guide each home buyer step-by-step through the entire loan process. So they're educated and confident in the mortgage options available.
He really wants you to be, uh, capable of making the best decisions all along the way. He can be reached by calling 6 7 8 2 2 6 7 8 8 7 6 7 8 2 2 6 7 8 8 7. I failed to mention Kristy in the first segment that we believe you and I believe we can sell every house in metro Atlanta for $28,000 more than the neighbor sold his or her house for.
And I always say, On the shows. If you don't believe me, try me. Go to go Gaddis radio.com, click on sell for $28,000 more. Put in just a little bit of information. And you'll get a customized maximum value plan, which is a really unique way of looking at value, so you don't leave any on the table. And then you will also get up to a $15,000 rehab and refresh budget.
You've seen some of those flowing through the system recently. It's amazing. Yes. What happens when we invest a little money in the properties? Absolutely. Yeah. And the sellers just reimburses the closing and we're good to go now. Last thing, we've got about 25 seconds left. Do you think the people on those reality TV shows are as interesting as they appear to be on tv?
Everything on TV is more interesting than it is in person. Don't you think? I listen, I could not be that interesting as they are on TV and unless somebody wrote a script for me. Yeah. And then I could be just that interested. We're gonna interesting. We're gonna take a quick break when we come back home.
Foreclosures are starting to rise nationwide. And should you consider buying a starter home or a forever home, we've got those subjects and more we'll be back.
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