Cable TV still loves flippers

Good morning. Even in a sinking housing market, Cable TV still loves house-flippers. But as Meg James reports in today's L.A. Times, market realities might force these shows to take a turn to the dark side.

"The question is: How much will producers and networks have to shift to keep current with the changing circumstances of the real estate market?" said advertising exec David Scardino. "A lot of these shows are uplifting and feel good, some people get burned but not too badly. But are those stories going to get darker? How much real reality will they let in?"

Carlos Ortiz, exec producer of "Flip That House": "When people lose money, we are going to show them losing money," Ortiz said. "We're not going to spin everything so there are rainbows and bunnies at the end of every show."

Robert Sharenow of cable network A&E predicts programs such as "Flip This House" would endure beyond "this hiccup in the market."

Sharenow: "The show is kind of recession-proof.  If there are more foreclosures, that will make flipping opportunities more readily available. Even if the profit margins are slimmer, there will still be plenty of challenges and pressure and drama. It turns the heat up on the drama when times are tougher."

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Comments

[Jeremy (jemarqu)]

This show wasn't on the air before the real estate boom. I don't see how its relevant in today's market.

If they wanted an interesting reality show, they could do a follow up with all the people that bought those over-inflated "flipped" homes through their foreclosure process.

[caliguy2699]

I've seen a number of shows on HGTV, one of the networks that went totally over the edge in hyping the real estate runup of a few years ago. I've noticed that on one show - called "My House is Worth What?" - things have begun to change.

This show follows homeowners who are looking to get their house "appriased" - in reality, a realtor tells them what they would list their property for after going over some positives and negatives of the property.

A very educational show, because you get a feel for what types of features are most important to buyers. Anways, recently numerous realtors in newer episodes have, fortunately, begun to be realistic and tell homeowners that houses are not selling for what they used to.

Of course, many are in denial. I saw one episode over the weekend where the owners threw a fit when the realtor didn't price their property as much as they had wanted, and basically insinuated that the realtor didn't know what they were talking about because they didn't agree. Pathetic.

I did an entry about the whole real estate TV phenomenon, specifically on the show I just mentioned, a little while ago - http://caliguy2699.blogspot.com/2007/06/warning-do-not-read-while-eating.html

[Toby]

When prices drop, the amount of money you can invest in a "Flip" will drop too.

Does wacthing a bunch of people just paint the inside of a house and lay laminate flooring make interesting TV? Maybe, but I don't think so.

[srla]

Check back next spring. I doubt most of these shows will survive the winter. Foreclosures hardly provide fodder for flippers when prices are trending downward, meaning, after 2-3 months of renovations, you then have to compete not only with the flood of new (even lower priced) foreclosures but also with regular listings that have also come down in price since the time you purchased the property.

There will still be some flipping going on, no doubt, but it will be limited to those experienced enough to find the true steals and fast enough to get them back on the market while the price is still a bargain.

This will weed out the casual flippers, the wanna be flippers, and the fantasy flippers - the kinds that actually watch these shows in the first place.

[Mike]

We did this same story a few weeks ago at Variety. Link here: http://www.variety.com/article/VR1117970864.html?categoryid=2522&cs=1&query=property+ladder

In a twisted way, the cable execs actually aren't too concerned. After all, people making a bundle of money on cheap-o flips doesn't make for good TV. People losing their shirts on flips that turn disasterous -- that's GREAT TV, they say. From Variety's story"

"We're starting to see it now in the stuff we're filming," says Brant Pinvidic, TLC's senior VP of programming. "It's gone from, 'Oh, I can get so much money for my house' to, 'Oh my goodness, what if I don't sell my house?' "

After all, as the market crumbles, skeins that once highlighted get-rich-quick property flips suddenly won't always have happy endings.

But rather than lament the end of the decade's go-go home boom, Pinvidic says the recent gloom-and-doom headlines may ultimately make for better TV.

"From a TV perspective, it makes things much easier for me," he says. "It increases the stakes. And I want people with real stakes."

[Teresa Rothaar]

The only real estate reality show I ever cared for was "House Hunters." It wasn't about flippers. Each episode simply showed a prospective buyer going around with a real estate agent and looking at houses, eventually choosing one to make an offer on. The camera followed them as they toured various properties, recording their commentary on each one.

I felt this show was informative for sellers because it showed what BUYERS look for when shopping for a house...not what real estate agents claim buyers look for. Watching this show, for example, demonstrates that it is imperative for a seller to ensure their house is neat, clean and presentable, and that buyers can actually SEE the house. When buyers walk into a dirty house, they understandably wonder if the seller has bothered with home upkeep. When buyers walk into a house where every square inch of wall is covered by artwork, they wonder if the seller is hiding something.

I don't know if this show is still on. Possibly not, because it was too sensible. =)

[Sam]

This group looks like flippers who care. This is the main reason I do not watch TV anymore. I estimate 75% of these reality shows are set up by the networks, do not waste your time.