Take a page from the Property Brothers

Jonathan and Drew Scott are young, good looking and as genuine as they appear on their W Network television show, Property Brothers. And they’re successful to boot. So what Realtor wouldn’t want to follow in their Gucci loafers/construction boots to find clients fixer-uppers to transform into dream homes?

A television show might not be in your future, but you can follow the brothers’ lead.

Start by sitting down with your buyers and narrowing down the areas in which they’d like to live. Make up a list of their must-haves and help them determine their budget. This is where many buyers have a disconnect – they don’t realize they can’t afford the house of their dreams.

On Property Brothers, this is when Drew steps in and takes the buyers to a move-in ready home that has all of their must-haves. He then reveals the price tag, shockingly tens of thousands of dollars over their budget. It’s a nasty and extreme dose of reality.

Although Jonathan says he feels it is a mean thing to put potential buyers through, it does bring them down to earth. “People want move-in ready, but move-in ready comes at a big cost,” he says. Instead of buying someone else’s dream home, buyers need to be educated about how they can renovate to create their own.

Seeing a move-in ready house also provides inspiration, and ideas for furniture and décor, Drew says.

You might not want to go to such extreme measures, but it will be helpful to show your buyers what move-in ready houses cost.

First, do your homework. Educate yourself about the neighbourhood and the types of houses it contains. When looking for fixer-uppers, look for things you can’t change such as location and square footage, says Drew.

Familiarize yourself with different types of renovations. Many Realtors don’t understand renovations or the value those improvements bring, says Drew. Check out some properties, renovated and not, in the same area and compare prices.

You may not want to go back to school for years to become a master builder like Jonathan, but taking a building and renovating course will help you understand the process.

As a professional Realtor, you will know about zoning issues. If the buyers want to build an addition or a garage, find out if it’s allowed. Also, if the home has an income suite, ensure that it is legal.

If additions have been made to the house, check with the city to ensure proper permits were issued. If a renovation was not professionally done, you have to ask yourself what’s inside the walls, Jonathan says.

Talk to neighbours, who can often provide a lot of information about a house, and ensure the buyers get a home inspection.

Before they purchase, buyers should get a quote from a contractor so they can make sure they can afford the cost of the house as well as the cost of the renovation. Be prepared to hold buyers’ hands and help them through the financial aspects, Drew says.

On Property Brothers, buyers with limited resources often pitch in to do some work themselves, sometimes lending a hand with demolition and painting. However, your buyers need to be realistic and only tackle jobs they are able to complete.

Realize that the timeline of a TV show is not realistic and that work that takes five weeks to complete in the television world would realistically take twice as long in real life.

Although clients are responsible for finding their own professionals, you can provide them with resources. Just be sure that you know the contractors you recommend. Make sure they are personable and have a reputation for quality, Drew says. “Interview a bunch of contractors. Remember that the most expensive doesn’t mean the best quality.”

Never lie to a client, says Jonathan. If you don’t know, find out. Have a professional come in and give you an opinion if you don’t know. On Property Brothers, Jonathan often calls his engineer for professional advice. “A smart Realtor never has answers for everything,” says Drew.

The Scott brothers have a new show set to debut in January.

Caution your buyers against over-renovating or emotional buying.

“Go by the numbers. Always think resale and consider how big a buyer base there will be to buy the home,” Jonathan says. For example, a home backing on to a train line will (eliminate) 20 per cent of potential buyers.

Make sure your buyers are not afraid to ask you questions. You should be the centre point for all they need to know. Establish a relationship, he says.

Don’t be afraid to walk away. Some houses will simply cost too much to renovate and are not a good investment.

Having the right experience and education is invaluable, and the brothers put their knowledge to work every day. Drew got his real estate licence in early 2004. Jonathan got his soon after and later that year the brothers founded Scott Real Estate, which oversees the sales and construction of residential and commercial projects. The firm has offices in Vancouver, Calgary and Las Vegas.

Jonathan and Drew have been investing in real estate since 1996, when they bought their first investment property right after high school. From 1996 until 2003, they invested in residential properties with the help of local Realtors, and then decided to get their licenses and do it themselves.

They are no strangers to film and television, having acted and hosted television shows since they were children. They founded Dividian Production Group in 2002 (now Scott Brothers Entertainment) with their older brother JD. The company produces short films. Jonathan’s experience as a master builder/contractor is the icing on the cake.

To see the guys in action, tune in to Property Brothers Tuesday at 8 pm ET/PT on the W Network.

New series for Scott brothers

As if they aren’t busy enough, Property Brothers Jonathan and Drew Scott are working on a new series, Buying and Selling with the Property Brothers, which will premiere on the W Network in January.

On the show, the brothers will help homeowners sell their current homes and buy a new property. Jonathan will tackle the renovation, transforming and staging the home for a successful sale, while Drew will help the family find a new home that meets their needs, budget and deadline for moving out.