House Hunting? Property Brothers Warn Against ‘Lipstick on a Pig’ Effect and 3 More Potential Pitfalls
Written by
Dawn Allcot
Edited by
Nicholas Morine
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If you’re looking to buy a home in this market — a market featuring high interest rates and high home prices — you don’t want to pay too much or purchase a property you’ll later regret. It may not be easy to turn around and sell it if you start to regret your decision a year or two down the line.
Some experts, including pros at Morgan Stanley, expect home prices to fall by as much as 3% in 2024, Fortune recently reported.
To avoid making a poor choice on a home purchase, Drew and Jonathan Scott, stars of HGTV’s “Property Brothers,” recently recommended keeping your emotions out of the decision in an interview on CNBC’s “Make It.”
“People who don’t have experience in real estate can look at a space and think ‘New kitchen! New floors! It looks new, this is amazing!’ But it’s not until you’re living in it that you see it’s a façade,” Drew Scott told the news site. “It’s lipstick on a pig.”
In the interview, the Property Brothers also warned of other potential house-hunting pitfalls and red flags. Avoid these mistakes to get the best value for your money and a home you’ll love for years to come.
Don’t Try To Justify a Bad Decision
Often, prospective buyers will focus on the beautiful parts of a house, especially if it is staged well. After all, the purpose of home staging is to create an emotional reaction in potential buyers — to help people visualize themselves living in the space.
Maybe a house has the gorgeous fireplace that you’ve always wanted, a well-manicured lawn, or a spacious kitchen island where you can imagine your children eating their after-school snacks.
Don’t let these physical attributes take your focus away from things like an older or damaged roof, structural issues, or problems with plumbing and electrical. These red flags can all be costly to fix.
Jonathan Scott suggested making a list of all the things you love about the home and anything you’d want to improve. “If the right column is way bigger and you’re trying to justify it with the nice things on the left, that might be a clear way to indicate [an emotional decision],” he said.
Don’t Shop Alone
Even if you’re shopping with a partner, it can make sense to bring in a neutral third-party, such as a friend, to offer feedback during a walk-through. While the real estate agent may work to get you excited about features you love, a friend can offer an objective viewpoint. Let your friend know your list of “wants” and “needs,” so they can help you stay on track with finding a home that meets your requirements.
“All of us, in some capacity, get overexcited about a home for one reason or another. Sometimes you need to take a step back,” Drew Scott suggested.
Don’t Jump Into a Deal Where the Seller Made Renovations on Their Own
When you’re buying a house and the seller boasts that they made upgrades or renovations on their own, without the involvement of a general contractor, that could be a red flag, Drew Scott warned.
Before you make an offer on the property, check with your city, town or municipality to ensure that the owner filed all the necessary permits. This is especially important if the renovations included electrical or plumbing changes or upgrades, expansions or additions, decks, HVAC systems, and more.
Drew Scott warned that real estate investors flipping homes often cut corners by not obtaining the necessary permits. If you’re purchasing a rehabbed property, you’ll want to be especially careful.
Buying a House is All Business
Don’t let your emotions get the better of you during your house-hunting adventure. Remember, buying a home is a significant purchase and, at its heart, a business transaction. Enlist the help of professionals you trust, such as a home inspector, to ensure you’re making the right choice.
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