11 Surprising Real Estate Strategies Chip Gaines Says to Ignore

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Real estate has always been a complex game to buy and sell, even when real estate moguls like Chip Gaines are giving you advice. Chip is known for his savvy business instincts and down to earth style and over the years has given plenty of tips. But he’s also been outspoken about some strategies that have, in his experience, been overrated or worse, counterproductive.

If you want to make a smart move in real estate, here’s a breakdown of some of the popular strategies Chip suggests you leave at the door.

Flipping Houses Too Quickly

Why is my house not selling
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It might seem tempting to buy a property, slap on a fresh coat of paint, and sell quickly for a quick profit. However, Chip says the ‘get in, get out’ approach can go wrong. Poor quality work that buyers will spot a mile away is the result of rushed flips that miss important details. Slow and steady can win the race, and that’s certainly true in real estate, where cutting corners often leads to costly repairs later on.

Relying on the “Location, Location, Location” Mantra

White Houses in estate
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Location may be important, but it’s not everything, argues Chip. Yes, a good location increases the value of a property, but you can have a great home in a not so great neighborhood that will stand out and attract buyers. People often underestimate how much design and functionality and charm can transform a space. It’s not just where you are, it’s what you do with what you’ve got.

Saving Money by Skipping the Inspection

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When some buyers are planning to renovate, they think they’re saving a few bucks by skipping a home inspection. Chip warns against this strongly. Faulty wiring and foundational cracks are just a couple of things that can lead to massive expenses down the road if hidden issues are not discovered. Even if it means stretching the budget a bit, a thorough inspection is essential. It’s more about taking a step back and making decisions based on more than just surface level observations.

It’s Always Better to Think Bigger

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Chip has seen his fair share of people fall into the trap of wanting the biggest house on the block. Bigger isn’t always better though. Larger homes aren’t just more expensive to maintain, they also limit your buyer pool when it’s time to sell. Instead of just shooting for square footage, Chip suggests thinking about what’s manageable and practical. For buyers looking for comfort over grandeur, a cozy well designed space usually appeals more.

Doing Trendy Renovations Only

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Trendy designs are great now, but trends come and go quickly. Chip believes it’s wrong to put more attention on ‘what’s hot’ than what’s always been around. Today’s sleek black kitchens or ultra-minimalist decor could be cringe tomorrow. Homeowners should consider renovations that will retain their value over time, Chip says. While classic, durable choices will never make waves on social media, they do attract serious buyers.

The Dangers of Underestimating the Power of Curb Appeal

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Sprucing up the outside of home is an afterthought for many. However, Chip maintains curb appeal is what can make or break a sale. It is the first impression and we all know they stick. Property can look really good with a well kept lawn, fresh paint and a few plants without a lot of money. It is a small step with big results, catching potential buyer’s eyes right from the street.

Overpricing the Property

Why is the house priced so high
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The most common belief is that you should start high and negotiate down. But Chip disagrees, saying overpricing can scare off potential buyers before they even enter the door. If a property is on the market for too long, it can become stale and buyers will begin to wonder what the problem is. It’s instead better to set a fair price for your property, that reflects this market, so your property is more accessible and appealing.

Counting on Open Houses to Get the Deal Done

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While open houses can be a powerful tool, they are often hyped up too much. Today, most buyers are getting their data online, checking out virtual tours and conducting thorough photo analysis. Yes, open houses do draw in curious locals, but they typically don’t land you serious buyers. They shouldn’t be your main selling point, focus on online listings and good photos.

Ignoring the Smaller Renovations

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Chip believes it’s easy to get hung up on big renovations like redoing the kitchen or the bathrooms, but you can have just as much impact with small fixes. Updating lighting or replacing old fixtures or repainting can give a home a fresh look without breaking the bank. These small details sometimes are what make buyers feel like the house is move in ready.

Investing in Vacation Rentals Without Performing Proper Research

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Many people do short term rental platforms without proper planning and this is because of the popularity of vacation rentals. However, Chip warns those diving in to first fully understand the local market and regulations. In many areas, laws around vacation rentals are changing and properties that once made a great income could struggle to keep up. It’s all about research—just because it’s a tourist spot doesn’t mean every property is a goldmine.

The Myth of Passive Income in Real Estate

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Chip Gaines believes one of the biggest misconceptions is that real estate equals easy, passive income. For most investors, however, there’s nothing passive about it. It takes time, effort and patience to manage properties, deal with tenants and keep on top of repairs. Real estate can be a profitable venture, but do not expect it to be a hands off investment.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.

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