I love Love It or List It

"BugEyedBimmer - back in the Saddle Dakota Leather" (bugeyedacura)
09/08/2013 at 12:19 • Filed to: None

But I hate how unequal the reno side is treated vs the list it side. Typical conversation if you haven't seen the show:

David: your current house is worth 400k
Homeowners: Okay. Our budget for the new house is 600k.
Hilary: and my budget?
Homeowners: the reno budget is 45k.

Like how the hell is that fair? I know that house worth is usually greater than the investment, but still, never that much.

DISCUSSION (13)

GhostZ > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 12:25

I consider myself relatively affluent in the English language, but I had to do a few Google searches to understand anything you just posted.

Since when did reality shows come with their own vernacular/jargon?

My guess is that the show fronts a % of the money up to a certain point for the homeowners, so they can increase the sensation of the show. They may also then refuse to allow budgets to be so high, to keep the show interesting.

Considering that the latest brand of US reality shows are completely and 100% fake... I have no trouble believing that your concern is caused entirely by the network's own executive decisions so that you will post about it here on Oppo and make us want to watch their show.

IDROVEAPICKUPTRUCK > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 12:30

Typically home buyers can afford to spend a lot more on the house than they can on the renovations because they can finance the house but not the renovations, that's an upfront cash cost.

Since you normally put 20% down on a house if you add $20k to the renovation budget you lower your budget for the purchase price by $100k. That's why more people don't buy homes that need renovation, sure the final "price" is lower but they don't have the cash reserves to actually pull it off.

qwertt > IDROVEAPICKUPTRUCK
09/08/2013 at 12:35

Thank you; because I understood it NOT!

BugEyedBimmer - back in the Saddle Dakota Leather > IDROVEAPICKUPTRUCK
09/08/2013 at 12:37

I get it. And if it was a small 20% more I could understand. But we're talking about differences that are 2-3 times the renovation budget.

IDROVEAPICKUPTRUCK > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 12:45

I think it makes total sense.

Total up front costs using the numbers you provided:

$600k house = $120k up front.

$45k rennovations.

Total: $165k

Now let's say that the renovations increase the value of the house 2:1 compared to come much they cost (they don't). So $45k of renovations yields an increase in value of $90k. So final value of house = $690k with $165k down.

Now if we increase the budget for the renovations to $65k that lowers our potential down payment to $100k so a $500,000 house.

$65k renovations yields $130k worth of value, total value of house: $630k

So they're getting a house that is worth $60k less for the same amount of money upfront. Believe it or not these are actual people buying a house, they don't make decisions based upon what is more "fair" for making good TV.
Another thing to consider is that while renovations can increase the value of the house they don't improve the location of the house which is probably the most important thing determining value. The homeowner can always do more renovations later but they can't move their house to a better school district.

Velocity- Peuguette Connoisseur > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 12:49

I watch this show all the time because my mom has it on when we are eating lunch, and yeah the reno budget is crazy, always

Demon-Xanth knows how to operate a street. > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 13:31

Financing a home purchase vs. financing a renovation is greatly different.

Leadbull > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 13:52

If Hillary used cheaper materials, she could actually give the owners what they want most of the time. But that wouldn't make good television, would it?

BugEyedBimmer - back in the Saddle Dakota Leather > Demon-Xanth knows how to operate a street.
09/08/2013 at 14:04

I guess that would be more understandable if the homeowners would manage their expectations a little better. They want a new house for their reno budget.

BugEyedBimmer - back in the Saddle Dakota Leather > Leadbull
09/08/2013 at 14:05

Then there would be no dramatic tension!

William Byrd > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 14:53

Great show. They usually love it so equality is relative.

Presenter Profession Wins
Hilary Farr Home design 51
David Visentin Real estate 38

http://en.m.wikipedia.org/wiki/Love_It_o…

BugEyedBimmer - back in the Saddle Dakota Leather > William Byrd
09/08/2013 at 15:01

History and memories are usually hard to beat.

ADabOfOppo; Gone Plaid (Instructables Can Be Confusable) > BugEyedBimmer - back in the Saddle Dakota Leather
09/08/2013 at 15:23

HGTV is a fucking scam, and I flat refuse to watch anything they air.

I understand that there will always be the "through the magic of television" part about any TV program that deals with repairs. Hell, even my favorite Wheeler Dealers glosses over how hard it actually is to work on cars on occasion.

HGTV however, is another kind of evil. Or it could be that I hate our house, can only see how much work it needs before we could expect to consider selling it, and just want to bury my head in a bucket and pretend it's not there.

I am not handy, so I have to hire, and remodelling and labor is expensive. Maybe I'll just burn the house down...

(I'm being sarcastic, mostly, Mr. Home Insurance Agent.) Just a small fire? Please???