Inventory is at an all-time low in many markets across the United States as eager buyers return to market more quickly than sellers. Your clients may be seeing their neighbors’ homes going under contract at record speeds and thinking that selling fast for their target price will be a breeze, but they might have forgotten about pre-listing updates—even if their home needs a lot of work.
While not every home needs a major renovation prior to listing, agents who want to build a pipeline that will withstand market ebbs and flows are leveraging the same strategy: helping sellers maximize profit with pre-sale renovations. Pre-listing updates will pay off big time for sellers in current market conditions, helping agents transform every client into a lifelong referral source. Here’s why:
1. Low Inventory = High Profit Potential
With bidding wars raging, the profit potential for smart pre-listing updates is sky-high. Low-interest mortgages may make purchasing a home possible for more buyers, but it doesn’t change their preferences. Even small improvements, like fresh paint or moderate kitchen updates, will deliver a huge return on investment for sellers. After mostly minor renovations, this home renovated through Curbio‘s “Fix Now, Pay at Closing” program sold in 6 days for $63,000 over asking. With the renovation cost coming in just under $20,000, the homeowners received an ROI of 538 percent and a profit of $105,000.
2. First Impressions Matter More Than Ever
According to a recent study by Lending Tree, in the past two months, 61 percent of prospective buyers have toured a house virtually, and an additional 33 percent said that they plan to do so soon. Buyers aren’t just browsing for homes online, they are using online listings to create a short list of homes worth visiting during COVID-19. To make the cut, your listing needs to look updated and move-in ready.
3. Sellers Need to Stay Ahead of New Construction
New construction slowed this spring as builders gauged homebuyer confidence, but now that the strength of buyer demand is clear, new construction is on the rise—up more than 17 percent according to Zillow. While new homes are often out of reach for many buyers (particularly first-time buyers) record low mortgage rates are making them an option. If sellers of existing homes want to compete with new construction or capitalize on low inventory ahead of the return of new builds to the market, pre-sale renovations are a must.
Right now, agents have a unique opportunity to maximize profit for their sellers through pre-sale renovation, and agents across the country are partnering with Curbio to help renovate first, sell for more and pay at closing. To learn more about Curbio’s “Fix Now, Pay When You Sell” solution, visit our website.
Rikki Rogers is the vice president of Marketing for Curbio.