HGTV star and real estate expert Page Turner, busy with the Season 2 premiere of Fix My Flip, took some time to educate BLACK ENTERPRISE readers on how they can navigate the current state of the housing market.
Turner’s hit HGTV series premiered its second season last Thursday after attracting 12.4 million total viewers in its first season. The hit home renovation show follows Turner as she meets with struggling house flippers who need help with assessing their properties.
Each episode sees Turner use her 20 years of real estate experience and even investing her own money to help the flippers “Fix My Flip.” The show comes at the perfect time as the country continues to see major shifts in the housing market in the wake of the pandemic.
“Season two is going to be something else!” Turner tells BLACK ENTERPRISE.
“From a home with 130 cats to the heartstrings of flippers with real-life crises that take lifesaving measures that override the flip, to my interactions and negotiations with problematic flippers (I mean houses! LOL).”
“Fixing flips continues at high-stress levels as I navigate through troubled waters with flippers that dig themselves into deep financial holes, who are stubborn with dated designs and unwilling to accept that the housing market has changed drastically and don’t believe me when I tell them that this change also means that the business of flipping has changed as well,” she continues.
“The market has taken a 180 turn from season one and we will see many of the flippers in disbelief that their ways of flipping don’t work anymore, and if they want to work with me, it’s my way or the highway! We’ll have to see which way they choose!”
An eternal optimist, author, fierce boxer, and proud single mother of three college-graduated women, Turner enjoys lending her expertise to those in need. It’s why she had no problem sharing insight with us on the current housing market, what appeals to home buyers, what upgrades should be at the top of a seller’s list, and how to budget for it all.
What insight can you share on the current housing market?
This year has found us in a very interesting and completely different housing market than we have seen in recent years! Especially since the pandemic when interest rates were at historic lows and home prices at historic highs, everyone was scurrying to buy a house. Now, with the rise in interest rates doubling and the once-historic rates of 2-3% settling in the first quarter of this year in the mid to high 6% range, we have seen the median U.S. home-sale price fall for the eighth straight four-week period 9-21%, after more than a decade of increases.
Many owners don’t want to sell and lose their low-interest rates, so there are fewer homes on the market. However, at 6% mortgage rates, buyers are still in the market. With fewer homes and higher interest rates, buyers are being met with lower list prices. For now, this means that though homes aren’t selling themselves anymore and sellers and agents must put in more time and work to favorably position the listing on the market, sellers can still get attractive prices (and in some markets multiple offers) for their homes if they are intentional with the pricing, presentation, and condition of the property. And in turn, buyers can purchase a lower-priced house in great condition that will take longer to gain equity, but a house they can turn into a home that they can love for many years to come.
What are key elements that appeal to buyers?
Price, curb appeal, updates, and a great flowing floor plan. The marketing has changed with the rising interest rates and homes no longer selling themselves. This means sellers and agents must focus more on the home and put in more elbow grease to get their home sold for top price. The curb appeal of a home sets the buyer’s tone (and sometimes attitude!) as soon as the buyer drives up to a house.
Upon entering a home, bright, airy, and open spaces with a good flow throughout (rooms that aren’t choppy or feeling boxed in) often put a smile on a buyer’s face. Noticing fresh paint, cabinets (or at least updated pulls), new fixtures, and when possible a “flex space” for a den or office will make your home most appealing and memorable. Adding fresh scents and flowers throughout adds the cherry on top.What tasks or upgrades need to be at the top of a seller’s list?
Less is more to buyers! The less a buyer needs to do to a home when purchasing a property, the better! If a seller is not in a position to complete a full renovation, it is best to focus on the key elements that would satisfy a buyer enough with the right price and minimal upgrades–curb appeal (fresh landscaping), fresh paint throughout, new hardware to update cabinets, and updated light fixtures.
If a renovation is possible, focusing on the kitchen with an open floor plan, new cabinetry, and appliances and adding an island, along with an updated primary ensuite (paint, tile, lighting, vanities) will do the trick to position the home at the top of the market list. When a home is positioned properly with price and presentation, multiple offers and receiving a top price for this new market can still happen!
How can one budget for these things?
Just like we are taught to have 3-6 months for an emergency fund, think of saving 3-6 months for your renovation the same way. Prioritize the projects you need to do that will add value and buyer interest to your property, collect bids and start saving. Especially in a changing market with higher interest rates and lower list prices, cash is always better when preparing to update your home to put on the market vs. pulling out a line of credit that carries costly interest fees.
Make sure that you don’t “over renovate” your home for your market/neighborhood and work with a Realtor that knows your area and who will work with you to decide what upgrades are necessary and the best and most cost-efficient materials to use to position your home as a top listing in your market.
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