The Block Effect
The Block effect on real estate sales is when people get keen to renovate and sell after being inspired by the popular television program The Block. As agents, we are thrilled that people love their homes and that it is an outlet for their creativity but there are some important caveats.
The Block Judges
The properties on The Block need to be sold and they must meet exacting standards. The judges are interior designers that know the latest must-haves and design elements. The job of the judges is to keep these properties on trend so they can sell at auction and make the show a must-see.
Unfortunately, many vendors inspired to renovate, don’t have access to judges that can guide them to meet the market. As agents, we are called to provide market appraisals and sometimes after The Block vendors are disappointed that their renovation is not what the market wants.
Unfortunately, some renovations reflect personal taste, not market expectations. Paint is a big problem here because after you sell you won’t be there. It really doesn’t matter what you like, the colours must make buyers happy.
To be clear, it does not mean the vendor doesn’t have great taste it just means that there are many buyers but only one vendor. So, if a vendor only does what they like it limits their chances of appealing to many. As houses are big-ticket items there aren’t many to choose from, unlike the range that smaller products have. If a house does not appeal to its market another house that does will be chosen.
The Block Budgets
The Block contestants are not spending their own money so they can make these properties look amazing. One fabulous room after another can only be delivered if there are fewer budget constraints. Choosing the latest anything is expensive The Block contestants don’t put expensive things in with cheap accessories because it is obvious and can be a sale killer.
Unfortunately, vendors don’t usually have a bottomless bank account for renovations. In fact, plumbing, electrical and general maintenance often eats into a design budget. Vendors often start off with wonderful design ideas but have to cut costs because of essential work. Some vendors then have to choose an alternative design option but without advice, it can be a costly mistake. Those judges would come in handy now for some guidance.
The big errors people make in cost-cutting often include floor options and blinds and window coverings. These are very expensive design elements and if you have spent a fortune renovating and can’t afford these items, we strongly suggest you ask your local agents for advice and get some selling tips. Agents generally would be happy to help because all agents want to see their area do well.
The Block Auctions
The Block is hugely successful and the prices achieved at these auctions are eye-watering. However, these are not your ordinary buyers with ordinary bank accounts. These buyers have very deep pockets, they also will ‘eventually’ be known for buying those properties. These purchases often have strategic value for the owners and most buyers are not like that.
As agents, we experience the residual effects of The Block. Vendors buoyed by The Block auction prices expect some agents can replicate those results. We wish, but we don’t have a national audience for all our properties and we don’t have access to TV networks to market nationally.
The Block is great fun to watch and to be inspired by. However, a great heuristic is if it’s on TV it has to be different otherwise, we would all be on TV. The Block outcomes are exceptional not the norm and agents can’t replicate that sort of success without those massive budgets. What agents can do though is help their clients with what the markets want. We at EWRE would love to help anytime you need a hand and especially before you renovate to sell.