It’s not a secret that across the country, the real estate market is on fire. Homeowners are seeing their property sell in record time and for record-high prices. One commonality reported by REALTORS® is that fewer and fewer of their buyer clients want to take on home improvement projects when they purchase a new home. The buyers in today’s market are looking for updated, move-in-ready homes, and they are more than willing to pay the extra cost for it. Despite this, we still see many home sellers selling their property “as-is”, sometimes refusing to do any renovations or updates to the home prior to placing it on the market. It is most often that the seller makes this decision because they feel they simply do not have a choice. They are either short on time or they simply do not have the money to spend on the home prior to selling it. Regardless of the reason, what many sellers do not realize is that they are leaving money on the closing table, that could otherwise go in their own pockets, by not completing any renovations or doing any work to fix up the home prior to selling it. In fact, sellers are leaving an estimated $28 billion a year on the table, by selling their homes in as-is condition! The good news is, even the seller that is crunched for time or who doesn’t have the money in the bank doesn’t have to miss out on that extra cash in their pockets.
Companies are popping up all over the country to help soon-to-be home sellers maximize their returns. They are called “Concierge companies,” and they will front the money to make repairs and renovations that will bring in more money when you sell your home. These companies know what renovations will bring in the highest return and shorten the length of time the house will sit on the market. It almost sounds too good to be true, doesn’t it? We are here to tell you, this time it isn’t. These companies have come up with a brilliant business model that accomplishes one of LUXRE’s favorite belief systems in business… they create a true win-win for everyone involved. Keep reading to learn more about this great option for home sellers, As an added bonus, we are revealing which home renovations these companies have found to give the best results for homeowners- the highest return on investment.
Concierge Companies
There are at least a dozen concierge companies throughout the country. Many of them are still in start-up mode, testing out their systems and seeing how to serve their market. Each works a bit differently, but the idea is the same. They provide pre-listing services to home sellers to help them get more money in the sale of their homes.
One example is Redfin Concierge services. They are currently up and running in California, Seattle, and Washington, D.C., and if all continues to go well, they will likely be introduced in all Redfin markets over the next few years. They will perform staging and deep cleaning on homes they have listed and charge the seller an additional 1.5% fee on top of their commission rate.
Phoenix-based Curbio calls itself a pre-listing home improvement firm that will source the materials, manage contractors and the entire renovation project. They do not charge additional fees and allow the seller to pay for the renovations at the close of escrow. Curbio recently managed renovations on a home that totaled $35,000. They made roof repairs, refinished hardwood floors, updated bathrooms, painted kitchen cabinets, and a couple of other small finishing touches throughout the home. Before the project, the house was valued at $750,000. After the $35,000 in renovations, the sellers were able to sell their home for a huge $1,008,000! They made a profit of just over $222,000 thanks to Curbio’s renovations. These results are a bit higher than the norm, but if you could make more money without having to pay out of pocket, wouldn’t you want to?
Elevate by ONE Sotheby’s International Realty is another concierge company that is taking off in Florida. They will also manage renovation projects, large and small before a seller puts their home on the market. They work in conjunction with the Realtor to determine what needs the home has and what will bring in the highest return. Sellers don’t have to be active in the handling of the project. Like with Curbio, there are no upfront fees, and the cost of the renovations can be paid at the close of escrow.
Best Renovations
If you live in an area where concierge services have not yet caught on, you could take the initiative to make some upgrades on your own to maximize your sale price. These are some of the most commonly done upgrades as reported by the concierge companies:
- Bathroom – Installing a walk modern and sleek walk-in shower and upgrading the bathroom vanity are very popular upgrades.
- Flooring – Refinishing hardwood floors and replacing worn-out carpet is something buyers like to see.
- Curb Appeal – A fresh coat of paint, an upgraded front door, and beautiful landscaping help the home make a great first impression and bring in a significant return on investment.
- Kitchen – Depending on what the current kitchen looks like, something as simple as painting the cabinets and replacing countertops can increase the value of your home.
In older kitchens, you may want to consider an entire remodel.
If you’re getting ready to list your home, working with a concierge company is something you may want to consider. In some cases, the renovations won’t bring in the type of return that would make it worthwhile, but isn’t it worth checking out?