After making his mark in real estate with sulphurous reality shows like Selling Sunset and his even crazier little sister, Selling the OCNetflix offers Buy My House. More down to earth, the show invites owners to try to convince four investors to buy their single-family home. Entertaining at first glance, the concept disappointed two Quebec brokers interviewed.
Posted at 12:00 p.m.
The creators, to whom we also owe the programs Dream Home and Extreme Makeover: Home Edition, did not convince Mark-André Martel, of the Sutton Group. “I found it sad,” he said. I saw people come up with their life story in front of investors who end up giving them too low an offer. These are sharks that take away part of their [valeur nette réelle]. »
At first glance, however, one has the impression that Pamela Liebman, Glenn Kelman, Danisha Wrightster and Brandon Copeland are cool, sympathetic lowbrow investors capable of being moved by the humans who come before them.
It’s sham, according to Nathalie Bégin, of RE/MAX. “Investors are never going to get soft and offer hundreds of thousands of dollars out of emotion,” she says. For them, it’s performance above all else. They will always listen to the handsome little couple before making them a ridiculous offer. »
The advantageous risks of the market
She believes that the vast majority of sellers seen in the show, which went live on September 2, would have had an interest in testing the market. “They shouldn’t have taken the risk of losing $50,000 to $100,000, but rather put their property on the market to reach the general public. »
The emotional interest of Mr. and Mrs. Everybody then comes into play. “Several factors push buyers to pay more than the value, while an investor only thinks about profitability. »
Mark-André Martel also prefers to demonstrate the value of a property rather than letting it slip away at a price deemed too low. “When a house is listed at $850,000 and my clients receive offers of $700,000, I like to sell it for the asking price or more, after demonstrating that it is not necessary to consider the offers. very low. »
He is also of the opinion that Buy My House should not have combined investors and individuals.
It is very clear in this context that investors are forced to buy cheaper to make a profit on resale. But for the seller, there is nothing good in that.
Mark-André Martel, of the Sutton Group
Nathalie Bégin believes that the concept would have gained in interest if it had been a question of owners of multiplexes and not of single-family homes. “When you sell an income building and you compare the numbers, it’s different,” she explains. In the case of Buy My House, they are small couples, and not investors for the most part, who sell to people interested only in money. »
Prepare your arguments
Having the quality of its fault, the show highlights the need to know the comparables before selling. “On the one hand, participants who have good arguments end up not selling their house to investors, because they are more informed,” explains Mr. Martel. On the other hand, investors will not bet if they do not feel familiar enough with a territory. »
The broker also had the impression that the knowledge of each other was almost always out of balance. “It’s as if a guy who’s been doing karate for years came to see me for a fight: he’s going to disarm me completely. It’s not fair to sellers. They face investors who know very well what they have to do to make money. »
Although Buy My House focuses on several markets in the United States, Mark-André Martel believes that the Netflix show has the merit of showing the risks of doing business with investors.
In any market, if you talk to investors, they will buy 10 to 30% less than the value of your house, claiming that they will pay you quickly and that you save brokerage fees.
Mark-André Martel, of the Sutton Group
However, the investors themselves will have to pay by reselling. “If a house is worth $850,000 and they say they have to buy it for $700,000, it’s because they have taken into consideration the brokerage fees that they will pay later and they are looking to make a profit on the backs of the sellers. »
His observation is clear: “Appealing to investors is for people in a hurry and badly advised who will sell at a loss. »