Here are tips to help you decide if Pre-Sale Home Renovations are a good fit for you or not. These are real estate services for homeowners who need financial assistance or project management help with renovations, in order to sell their home to potential buyers in a timely and profitable manner.
This class of renovations focuses on delivering “move-in ready” inventory to buyers. The fewer the changes prospective buyers may need to make, the more desirable your home will be. These home improvements can include kitchens and bathrooms, but also smaller projects, as well. The end goal is to provide cost-effective improvements that will deliver a quick sale at an optimal sales price.
Most importantly, companies providing pre-sale home renovations are experts in determining the details of specific renovations that will deliver a positive ROI (return-on-investment) within a short sales cycle. These firms can prevent homeowners from taking on unnecessary home improvement projects that are costly, risky and time-consuming that prospective homebuyers do not want or need.
These services are being provided in-house by some real estate brokerages, such as Compass (referred to as their “Concierge” service). Other brokerages, such as Dallas-based Ebby Halliday, are partnering with specialty real estate technology vendors, such as Curbio. Our overview of Curbio’s offerings will give you a good understanding of what it’s like to work with them.
Here are guidelines to familiarize you with the various benefits and risks of this type of real estate program.
What to Consider BEFORE Signing a Pre-Sale Home Renovation Agreement
Positive Factors for Opting for a Pre-Sale Renovation Contract:
- Property was Unable to Sell “As-Is”
- Homeowner has Sufficient Equity and Cash Safety Net
- Homeowner has Adequate Time to Sell
- Current Market is a Stable Seller’s Market
- Real Estate Agent has Pre-Sale Renovation Experience
- Reputable Financing Firm is Available
- Reliable Construction Partner is Available
- Project Management is Provided
- There is a Low Risk of Project Delays
- Vested Parties are Aligned
Negative Factors for NOT Opting for a Pre-Sale Renovation Contract:
- Property Could Sell “As-Is” without Additional Home Improvements
- Homeowner has Minimal Equity or No Cash Safety Net
- Homeowner needs to Sell Quickly
- Current Economy is Weak or Local Market is Volatile
- Real Estate Agent has Minimal Pre-Sale Renovation Experience
- Reputable Financing Firm is Not Available
- Reliable Construction Partner is Not Available
- Project Management is not Provided
- There is a High Risk of Project Delays
- Vested Parties are not Aligned
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