Now that the latest series of The Block has finished, it’s probably a good time to look back on this popular Reality TV series to see what, if anything, Melbourne homeowners might learn about the property market in 2020.
For those who didn’t watch the program, teams of two contestants were challenged to renovate one of five adjoining houses in New Street, Brighton. The renovated homes were then auctioned on Saturday, with the final episode going to air on Sunday evening.
Sales results on The Block
All five houses sold well above their respective reserve prices. The sale prices ranged from $4.256 million to $3.8 million, with the prices exceeding their reserves by margins that ranged from $460,000 to $1.06 million.
Reality TV is not “reality”
What everyone needs to remember, of course, is that whilst the producers of The Block might call their program “Reality TV”, the circumstances of these sales were a long way from the reality of today’s market. When your property is promoted on TV every week, you have huge crowds of people lining up to view your house, plus the added ‘celebrity status’ that comes from purchasing a property on national TV, these results are clearly a one-off with very little link to today’s property market.
Lessons from The Block
Those that watched the show will be aware that a lot of effort was made to tailor the finished renovations to cater for market demands. It was also interesting to see the effort that went into maximising the impact of the front entrance, ensuring a real “wow factor” for buyers when they first inspected the property. These are both important messages for anyone planning on renovating a property specifically for sale.
Of course, if you are thinking of renovating with the aim of selling at the end, we would always strongly recommend that you talk with an experienced property professional who knows your local market BEFORE YOU START. This strategy will help you to avoid overcapitalising, as well as avoiding making changes that won’t fit with your target demographic.
If your need any professional advice in refining your property plans, or you would like a copy of our free booklet, “Fatal Real Estate Traps Exposed”, feel free to give the team at Ian Reid Buyer and Vendor Advocates a call on 9430 0000 before you start painting.