Top-producing real estate agents use a solid, informative listing presentation to win deals. Research by RPR tells us that five of the most frequently used elements in a listing presentation include a CMA (86%), a home value estimate (80%), local market analysis (77%), agent marketing plans (73%), and tips for sellers to prep the home (69%).
But the real estate market has shifted away from a seller's market toward a more balanced market, even a buyer's market in some regions. Once again, buyers are influencing which homes sell quickly and which linger unsold in the market.
Listing presentations are adapting to share these changes with sellers and what it means to their home sales. But they are missing some of the most critical factors influencing today's real estate market.
The biggest change is a decision that sellers must make before listing their homes. So what's missing from your listing presentation?
The one thing sellers need today more than ever: making sure their home is market-ready before listing it for sale.
As the largest generation, with tons of buying power, millennials are driving home purchases. And they want move-in-ready homes. According to a study by TD Bank, millennials shun the fixer-upper, as fewer than one in five would buy a home that needed a lot of love. By comparison, 71% of millennials indicated they want a move-in-ready house.
Enter the hottest new ways to sell a home: the presale renovation.
About presale renovations
Presale renovations are not new. And flippers have been renovating as-is homes for decades.
Individual agents and brokerages have routinely assisted some sellers with significant home improvements to increase the marketability of a home. As a result, more minor home improvements — deep cleaning, fresh paint, and other cosmetic enhancements — have become commonplace.
What's changed is the scale and new accessibility of presale renovation.
A new category has emerged called Concierge Services. It's driven by savvy startups, including Revive Real Estate. Companies like Revive have taken this old dog and taught it some new tricks.
The result is a better way for sellers to hire and pay for renovations.
Today, most homeowners miss out on 15% to 20% of the value of their homes when they sell. Presale renovations prevent that from happening.
Here are the most common advantages a presale renovation gives sellers, using Revive as an example:
- Presale renovated homes sell faster, while as-is homes sit on the market and must reduce their price.
- Presale renovated homes sell for more — the average ROI is over 250%.
- Presale renovated homes give sellers an average of $186,000 more in sales profits.
- Less stress for the sellers as the presale renovation is turnkey — the process is managed for them.
- The funding for the entire renovation is free — the improvements are paid for at closing.
- Faster turnaround times — tap into a ready-to-start network of vetted, top-quality contractors.
- Smarter renovation through expert advice and proven design experience for maximum results.
The new "must have" for your listing presentation
Today, spotlighting a presale renovation is a must for any agent's listing presentation.
Right now, according to RPR research, listing presentations often have a low success rate. About 45% of agents lose anywhere between 25% and 75% of their potential listings after their presentation.
You know that in today's market, as-is homes struggle to sell; explaining to your sellers the value of a presale renovation can tip the scale and help you win more listings. After all, our homes in the U.S. are aging — now averaging 39 years old — and almost every listing you take can use some love, if not a lot, to sell fast today.
Working with a Concierge Services firm like Revive can help you deliver precisely what your clients need. From smaller prep-for-sale projects to full-blown renovations, Revive can help agents help their clients without breaking a sweat.
For the agent, when a home sells for $100,000 or $200,000, or $600,0000 or more (as many Revive homes have), that means higher net commission income. The brokerage wins with more revenue. But more importantly, when you include presale renovation in your listing presentation, you are helping your seller maximize their profits — which can be life-changing.
Want to see dozens of real-world examples — including "Before and After" photos — of presale renovations? Go to www.revive.realestate/solutions/customer-stories. To learn how to help your clients work with Revive, go to www.revive.realestate.
Dalip Jaggi is at once an active entrepreneur, a highly skilled technologist, and a profoundly passionate business leader. Today, Dalip is co-founder of Revive Real Estate, a PropTech with a goal to democratize house flipping.