HGTV's "Property Brothers" hosts Jonathan and Drew Scott have something to say about Canada's hot housing market. The twins and real-life licensed real estate agents, who are natives of Vancouver, are urging residents not to make hasty decisions with regards to real estate investments.
"The big thing is we're seeing a lot of these houses that are selling for a million over list," Drew told Huffington Post Canada. "Some people get into a big frenzy and they bid up, bid up, bid up, and they don't realize they're paying way more than the house is worth."
According to the report, residential property sales in Vancouver jumped up to nearly 32 percent last month as compared to January 2015. Additionally, the Real Estate Board of Greater Vancouver reported that the estimated price of an average home increased 28 percent at $1.3 million.
While this may mean good business for the region's real estate industry, the Scott brothers are wary that the trend may not be entirely beneficial for the home buyers. Drew strongly recommended that buyers seek an agent before closing a deal to determine true market value.
"Every neighbourhood has a cap for what you can do for an improvement and what people will buy and pay for in that neighbourhood," he said.
Jonathan, a licensed contractor and master builder, also suggested that it is important to enlist a contractor who can quote renovation costs to determine whether the house will be a good buy and have a good resale value.
"Most people skip the step," Jonathan said. "They just dive right in and they spend all this money and they don't think about the fact that 'Oh, wait: Am I actually going to be able to get the money back out of the place if I have to sell?'"
"We tell clients all the time: real estate is a great way to make money. However, if you're not ready to get into a property, don't rush," Drew concluded. "The worst thing you can do is become house poor, and we want to make sure that people aren't."
In "Property Brothers," Jonathan and Drew help individuals and families find, buy and renovate their dream home within their budget. As previously reported, the hit show was picked up by HGTV for four more seasons. Season 6 is scheduled to premiere on Feb. 17.
