Unreality TV: Real estate shows like Location, Location, Location slammed for ‘regrettable’ property advice
A pair of reality stars are under fire for pushing buyers towards “compromised” property decisions on air, as the truth behind reality real estate shows is uncovered.
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A pair of reality stars from Location, Location, Location Australia are under fire for pushing buyers towards “compromised” and “regrettable” property decisions on air.
The latest iteration of the reality show’s Australian franchise sees former The Block winners Mitch Edwards and Mark McKie, better known as ‘Mitch and Mark’, help buyers hunt for their dream homes across the nation.
But with properties on busy truck routes and subject to floodzones suggested, it’s raised the ire of the nation’s professional homebuyers for being unrealistic, joining the likes of The Block and Luxe Listings on the list of reality programs where following their example could cost homebuyers six figure sums.
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Real Estate Buyers Agents Association of Australia (REBAA) president Cate Bakos said Location, Location, Location’s experts were putting viewers at risk of purchasing inferior properties for over-inflated prices.
Ms Bakos added there was irony to the show’s name after it featured a house in Melbourne suburb Kingsville on Williamstown Rd — a known truck route and busy main road.
“They didn’t appear to mind selecting poor quality locations such as main roads in Melbourne and potential flood zones in Queensland,” Ms Bakos said.
Fellow buyer’s agent and REBAA Queensland representative Melinda Jennison was present at the auction for a property in Brisbane suburb Bulimba that Mitch and Mark attended for the program.
Ms Jennison said it was not disclosed on air that the home was subject to the Brisbane River Flood Overlay.
“There was no due diligence discussed before auction, in fact, the buyers actually asked ‘what’s wrong with it?’,” she said.
“And the auction strategy discussion was a joke. They did not have written instructions from their vendor, and accepted verbal instructions during the auction, plus the maximum bid amount was not adhered to.”
Ms Jennison highlighted another Brisbane property featured on the show, where it was suggested the buyers convert the downstairs area into a private retreat.
The buyer’s agent said the program neglected to discuss whether the ceiling was of legal height for this type of conversion.
“It’s common knowledge that lots of properties in Brisbane are not legal height underneath,” Ms Jennison said.
“We actually measure ceiling heights when we inspect properties, but this was not measured or even discussed on the show.”
It comes after Mitch told news.com.au the pair bought a home for themselves in Newport, to Sydney’s north, that they thought looked good on paper and only needed “some renovation”, but was now “falling down around our ears”.
Ms Bakos added that there had been no evidence in the first few episodes of how home values were assessed before buyers made offers, nor of pest and building inspections, engineering reports or negotiations.
The REBAA president has previously worked with one of the show’s former hosts, Empower Wealth buyer’s advocate Bryce Holdaway, and said past seasons proved due diligence had a place in the program.
But Ms Bakos warned following Mitch and Mark’s lead could lead to buyers overpaying by as much as 20 per cent of a property’s value.
On Melbourne’s typical $910,000 house, this could cost home seekers a whopping $180,000.
“Some of their selections were highly compromised and it’s the buyer who loses,” Ms Bakos said.
“Whether it’s now or in years to come, some of these recommendations could be highly regrettable purchase decisions.”
An Endemol Shine Australia representative said its property research team for the program Location, Location, Location included licenced buyer’s agents conducting “background work” that exercised due diligence consistently to ensure the best process for its buyers, as well as financial and legal checks.
“Mitch and Mark worked extensively with our property research team and with the couples to fully understand their brief, budget, and parameters, to ensure that everyone was entirely comfortable and understood the process completely,” they said.
“All negotiations as part of the auction or private sale process were carefully considered and followed extensive research and experience by Mitch, Mark and the broader team.”
Buyer’s agents also have warnings about the dangers of buying and renovating property after watching shows like Luxe Listings and The Block.
Property Buyer boss Rich Harvey, a former REBAA president, said the Amazon Prime program, hosted by flashy Sydney agent Gavin Rubinstein, provided a snapshot into the “theatre” of real estate in the eastern suburbs — but warned some scenarios were “staged”.
“Obviously TV shows thrive on drama, jeopardy and the personal backstory of the buyers, vendors and their high-flying agents, so it’s not necessarily a true reflection of the typical steps a buyer’s agent would take,” Mr Harvey said.
Industry sources have flagged some homes featured on Luxe Listings were only presented for entertainment purposes, when in reality their owners were “never going to sell”.
Mr Harvey added that renovation shows like The Block broadcast “unrealistic” timelines for completing a large-scale overhaul.
“They also get a lot of help from skilled tradespeople,” he said.
“(The contestants) can paint, clean up and put together Ikea furniture, but they’re not necessarily co-ordinating the tradespeople — which is half the trick of a good renovation.”
Mr Harvey also noted that the auction process on The Block was “contrived” and “not realistic at all”.
Show regular and Advantage Property Consulting buyer’s advocate Frank Valentic has already predicted this season of the show will have to sell its Hampton East renovations at a loss or risk auction disaster.
Mr Valentic said the 20 Charming St home sold for a $3.5m suburb record to the show’s producers might need to sell for as much as $4.5m to recoup renovation costs and turn a profit — which they would get “nowhere near” in Hampton East.
The buyer’s advocate said with the nearest comparable sale in the suburb — a $3.015m Kinross St sale two years ago. when the market was less volatile — he believed reserves would be set above $3m as the show tried to claw some of the costs back — but even at this level would seriously test buyers’ bank balances in that area.
“I hope it’s not a Block disaster, but it could well turn out to be one of the biggest disasters The Block houses have seen,” he said.
— additional reporting by Nathan Mawby
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Originally published as Unreality TV: Real estate shows like Location, Location, Location slammed for ‘regrettable’ property advice
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