What does owner representation mean?
Selling a home is typically an intensive process involving several tedious tasks. Adding renovations to the mix could make it even more hectic for the homeowner—but it doesn’t have to be. So, what can a homeowner do when they can’t handle everything themselves? They could look to an owner's representative for assistance.
What is owner’s representation?
An owner’s representative is a person or team that is well versed in construction, real estate and architecture. Representatives keep owners’ best interests in mind and advise them on decisions throughout the renovation process.
When a homeowner utilizes owner’s representation, they take a step back during the home renovation process. Instead of spending time coordinating contractors or saying prayers that permits were pulled correctly, you have an advocate to ensure that things are done correctly.
They also handle things like conception, design, budgeting, construction, completion, and close out—plus communication with all parties throughout the project. Homeowners can kick back and relax, knowing their renovation project will be completed on time and on budget.
These systematic processes with dedicated liaisons gives homeowners a say without having to dedicate hours of research or to make phone calls after work.
What does an owner’s representative do?
The goal of an owner’s representative is to achieve the maximum level of satisfaction for their clients. If you decide to work with a representative, you are putting your faith in them as experts in the real estate space.
To effectively serve in your best interest, it is important that the owner’s representatives are well-versed in multiple aspects of real estate. They are typically retired contractors, former home inspectors, or others with localized real estate regulation experience. As a result, they have a strong understanding of things ranging from assistance in construction, handling sub contractors, and renovation to timing, scheduling, and even local building regulations. Some major responsibilities include:
- Working with contractors
Depending on the scope, you'll probably be working with a few different types of contractors. A dedicated team of representatives coordinates with each to help manage the project to avoid delays. Since they have extensive experience in the space, they understand realistic timelines for different milestones. They know when to push back and when a contractor needs more time or money for the project.
- Keeping projects on budget
We all know how hard it can be to stay on budget going grocery shopping, let alone managing a renovation project. Many owner’s representatives have a background in construction in one way or another, so they are up to date with costs associated with sourcing materials. They also typically have connections with contractors who prioritize their work because they offer repeat business.
- Address issues that come up
Knowing that there are unknowns that will pop up along the way enables representatives to be nimble when issues do arise.
Before a project is underway, it’s important to be able to foresee potential issues and develop solutions accordingly. With years of experience, they can anticipate things such as permit delays and know to check in with contractors instead of waiting for an issue to arise. That way, they can work to adjust timelines,budgets, and other issues while communicating realistic expectations to all parties. Having someone deal with the uncertainties of renovation also eliminates unnecessary stress for owners.
- Communicate with all parties
Let’s face it-- homeowners and contractors speak different languages. Having someone who understands real estate terminology and how construction works is best suited to communicate needs to a contractor. The same is true for translating contractor jargon into plain language.
It is also important to note that owner representation can vary from all-encompassing to relatively hands-off depending on what you prefer. Sometimes, it’s as simple as sending invoices for review to make sure the prices match industry standards. At other times, there might be a more comprehensive approach which includes all of the aforementioned responsibilities.
Ultimately, it’s up to you to decide on the amount of representation that works best for you.
Advantages of owner’s representation
There are plenty of reasons why a homeowner should consider using owner’s representation.
Leverage real estate professional expertise
The biggest reason is that it leverages the expertise of a real estate professional who has seen hundreds or thousands of projects through. Think about it--how many times have you renovated a home, worked with contractors, or been on construction sites?
Renovations can involve meeting with architects, contractors, and inspectors. There are permits and codes laypeople are unlikely to be aware of. Without guidance from an expert, you risk leaving your blindside exposed.
Time is another major consideration. Managing such a project could turn into a full-time job. But an owner’s representative can take care of everything while you continue living your life knowing that your interests are being taken care of. In the end, you benefit from timely completion, maximized profits upon selling, and zero headaches along the way.
Homeownership is very emotional for most people. Add money to the equation and emotions heighten even further. Depending on the situation, this may negatively affect the project.
Having a neutral third-party keeps the emotions out of the way. Your representative views each component objectively and can help you make decisions based on facts rather than feelings. It’s their job to tell you what’s realistic and advocate for you so that you don’t need to stress.
Should you hire an owner’s representative?
Anyone who lacks the time or real estate expertise should consider an owner’s representative. Besides the hands-on work involved managing the project, it takes market insight to keep costs under budget. Having an owner’s representative equips you with their skill and know-how. They are true experts who have done thousands of renovation projects and deals. From construction and design to marketing and logistics, everything is covered.
Homeowners deserve full confidence when they decide to put their home up for sale. So, should you hire an owner’s representative? If you want reassurance that your renovation will go smoothly, you should consider this hassle-free option.
Representing you while you sit back
Having someone represent you could save you lots of headaches, time, and money. Owner’s representation keeps the goal in mind to assist homeowners in transitioning into a new home while taking the hassle out of renovating and selling their current home. You don’t have to worry about project management. Instead, work with an owner’s representative to handle the work for you.