How pre-sale renovations are changing home sales

How pre-sale renovations are changing home sales

For the last couple of decades, the real estate industry’s focus on improving the home sale experience has centered on speed. Marketing messaging promises faster sales, speedier loan processing, and quicker closings. The emergence of iBuyers and cash-backed offer programs promises to finalize a home sale “in as little as 10 days — or less.”

Some home sellers want — and need — a faster sale. But a speedier home sale could be robbing hundreds of thousands of other sellers billions of dollars in additional wealth. How homes are sold today is changing and now requires consideration of which path is best for a seller.

The emergence of the hottest new category in real estate, Listings Concierge, is resetting how homes are sold.

Pre-sale renovations — allowing sellers to renovate now and pay later — are maximizing the final price of the home sale, delivering a faster closing, and ultimately creating more wealth.

Most homes need a little love. Sellers often focus on cosmetic repairs: a fresh coat of paint, new landscaping, deep cleaning, replacing carpet, refinishing floors and staging. This allows the home to be listed quickly, and the seller typically gets a speedy home sale.

Or sellers can take a little more time and make smart renovations to maximize their profit. With a pre-sale renovation option, sellers can make significant improvements, and they won’t have to do the work or pay the upfront costs. Instead, it all can be done for them, and they can pay for these improvements once their home sale closes.

Research shows that while a speedier home sale is an excellent strategy for many sellers, others leave money on the table by opting for a faster sale. In fact, most homeowners who put their home on the market as-is are missing out on between 15% and 20% of the value.

We dug into the data at Revive and found that the average seller who chooses a pre-sale smart renovation path over a faster sale made $186,000 more when they sold. In addition, the average return on a seller’s renovation investment (or ROI) is over 200%.

The extra benefit is that once the home does list for sale, the seller is not only ready for a faster sale, but they also get one. Move-in-ready homes are among the most desired listings as they sell more quickly. Revive found that renovated homes sell 72% faster.

Why the way homes are sold is changing

The Listing Concierge category, or pre-sale listing renovations, is growing exponentially. Again, the wealth creation factor is the driver.

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