The real estate market is changing dramatically.
Home buyers are exerting a greater influence on today's housing market than they have in years. Home inspections, seller concessions, finance contingencies, and price adjustments are back.
Real estate agents are facing this latest shift by educating sellers about what today's market means to them and the sale of their house. The challenge one veteran agent observed is that "sellers are viewing the real estate market today as if it were six months ago, while buyers are looking at it as if it is six months from now."
Home buyers have more power in this market, and what they want more than anything else is a move-in-ready house. Where in the previous market, sellers didn't have to think about their home's condition, updates or upgrades, in this market, it's vital to at least have that conversation.
While there will always be circumstances where an "as-is" listing is the best option for a seller, innovative new ways for homeowners to offer a move-in ready home solves the most common seller obstacles.
Today, presale renovation services, like Revive's complete turnkey solution, are available for real estate agents to share with their homeowner clients. Revive offers home renovations — from minor prep work to full remodels that cost up to $300,000 or more — with $0 due from the homeowner until closing.
Why is it vital that sellers avoid an "as-is" listing and bring their home to market move-in ready? Here are the top five reasons sellers will want their agents to list a move-in ready home:
1. Market shift: "As is" homes are now tougher to sell. Buyers are gaining more negotiation power and no longer must settle for a purchase without contingencies. In addition, an as-is home sale can break apart when that home requires traditional financing, as lender requirements have standards that all homes must meet.
With the return of inspections, buyers can see all the features — and flaws — a home has before the purchase is complete. Many buyers will not want to make needed repairs after the sale. These changes in the real estate landscape cry for move-in ready homes.
2. Millennials want move-in ready homes: Today, Millennials comprise 43% of homebuyers, the highest share of any generation, according to a study by the National Association of Realtors.
What's more: A recent TD Bank study found that nearly 80% of Millennials want move-in ready homes. They want to avoid fixer-uppers. The NAR study also found that 70% of Millennial home buyers would choose a smaller home, giving up the need for more space, to secure a move-in-ready home.
3. Move-in ready homes sell faster, helping real estate agents sell more homes: Real estate agents nationwide report that as-is homes are staying on the market longer. Revive's research shows that renovated homes sell 72% l faster than other homes listed for sale. The quicker a home sale can be closed, the more time agents will have to help other sellers. Move-in ready homes and speed up an agent's pipeline, allowing them to sell more homes.
4. Move-in ready homes sell for more: When a home is renovated to maximize its appeal to the greatest number of sellers — Revive's tactic — these move-in ready homes become an immediate equity builder. Homes renovated by Revive, for example, generate an average $186,000 gain in profits because move-in ready homes sell for more money. In addition, when agents recommend their homeowners use a renovation solution like Revive, they boost their average return on their investment, or ROI, by a stunning 257%.
5. Competitive differentiator for agents: Most real estate agents are unaware of new presale renovation solutions that innovative companies like Revive provide. Also known as Concierge firms, the programs and services provide renovations without advance funds from the seller.
At Revive, a team of designers and advisors connect agents and their sellers to a vetted network of contractors to swiftly complete high-quality work without the risks of going it alone. Once the home is renovated, the agent lists the move-in-ready home, which sells for more money than it would have if marketed as-is.
Agents who work with a renovation solution, like Revive, differentiate themselves in their local market. Take real estate agent Chalon Williams, a Keller Williams real estate agent in the Seattle area. She and her seller worked with Revive to turn what would have been an as-is listing estimated at $875,000 into a $1,300,000 sale.
The Revive-led renovation provided flooring, interior painting, kitchen remodel, lighting enhancement, staging and more. The total renovation cost was $157,756 netting $267,244 in additional profits for William's seller.
Revive reports it has already helped its sellers like the one on Bainbridge Island create more than $60 million in greater profits. Dozens of examples are online here.
For agents, a presale renovation means higher sales prices, which translates into a triple win: it often creates life-changing wealth for sellers, a higher net commission for agents, and greater profits for their brokerage.