Transforming Your Listings: The Impact of Renovations on Market Appeal

One of the toughest parts of the real estate business is winning a listing. Yet there is nothing more coveted for an agent's sales efficiency and profitability that will drive long-term success than securing the sales side of a transaction.

While the real estate market is always in flux as mortgage rates continue to sway, agents like you know that real estate sales still happen because life happens. Neighbors get a new job, have a new baby, become empty nesters, retire, inherit a windfall, get divorced, or pass away. Life changes can turn almost any homeowner into a seller.

Because more people use a real estate agent today than even before the internet, when a life change happens, your neighbors are most likely going to want to hire an agent to sell their home.

So, how do you fully leverage your local market connections and knowledge to be that agent and win the listing?

As an active agent, you can stand out from your competition and offer greater value if you are willing to transform the listings you bring to market.

Rush to list or renovate for more?

Home flippers have known for years – perhaps decades – that many homes rushed to market have untapped value. It's how they make their money. Find properties that need some – or a lot – of tender loving care or TLC. Flippers know how, from experience, to invest in the right renovations to resell the home at a significant profit.

The flipper business model requires deep local market expertise and experience. Recently, the process of investing in home improvements to maximize a home's value has largely been the preferred method of flippers. But through the emergence of pre-sale renovation firms, it is now available to the average homeowner, as it is becoming a transformative tool being added to savvy agent's listing presentations.

The biggest motivation for homeowners considering selling is that it's the fastest, easiest way to maximize the sales price. In fact, Revive research of homes that have gone through the pre-sale renovation process in 2021-2022 found sellers net an average of 236 percent. The average profit gained: $140,000.

Of course, individual results may vary, but giving homeowners access to the flipper model is a game-changer for agents, too. Remodeled homes sell faster and for more money. For a commissioned agent, the higher the sales price, the greater the commission. It's a win-win, and that is why agents are transforming their listing presentations to include exploring a pre-sale renovation path rather than rushing the listing to the market. NAR research found that 70% of millennial buyers – a huge part of today's homebuying market – would be willing to buy a smaller home if it is move-in ready.

Making the right improvements

If there's a secret sauce to the flipper's business model, it's knowing what improvements to make for each home. Making the wrong choices can negate the ability to maximize the home's value.

Sure, you could recommend your sellers go it alone and take the DIY approach, but do they have the design skills or know what features and amenities buyers are seeking in your market? Can they contract with the right professionals, have time to oversee the entire process, finance it all upfront, and finish in six to eight weeks? Probably not.

Real estate agents know the value that a pre-sale renovation firm brings to a seller. It's a turnkey process and far less risky because they have the team, resources, knowledge, and skills to maximize the appeal of the home in your local market.

You want your listings to stand out from the competition when it comes time to sell. You also know that some home improvement projects go further than others in boosting resale value and appeal. The safest route for you and your seller to make your listings stand out is to involve skilled renovation experts who do this for a living.

Market appeal nets higher prices

Zillow research found that listings that promote amenities buyers want in a local market help boost the final sales price. Their study shows listings with chef-friendly amenities – such as pizza ovens and professional-grade appliances, can sell for as much as 5.3% or an average of $17,400 more than similar homes without these features.

Trendy home features that include "she sheds" and terrazzo floors — the female equivalent of the man cave — can boost a sale by an average of 2.5%.

But maximizing a property's market appeal isn't just about aesthetics; it's about making strategic improvements that will attract a broader pool of potential buyers. More foot traffic to your listings equates to a higher likelihood of a lucrative sale. As an agent, this should be at the forefront of your selling strategy.

Attract more listings

When agents transform their listings when the best path for the seller is a pre-sale renovation, they become the local market innovator. Having a competitive advantage, such as having clients who have gone through a pre-sale renovation and significantly increased their final sale price, can be a market magnet for your business.

Happy sellers refer others to you as a forward-thinking agent who guided them to this hassle-free, value-unlocking solution. You'll especially resonate with modern sellers who want to work with an agent who is current on the new ways to sell a home.

Introducing the pre-sale renovation option during your listing presentations will help you win more listings as you become the local expert who has proven how well this model works.

Delivering more value

In a market where buyer preferences and trends are constantly evolving, your value as an agent is higher than ever. Your local expertise not only guides sellers in making their homes appealing but also ensures they have the right market appeal.

By leveraging your knowledge and resources, you empower sellers to make the best decisions for their properties, leading to successful sales and satisfied clients. Your ability to navigate the newest strategies effectively is what distinguishes you as adding more value and being the choice of more sellers.

Jessica Morrow, a seasoned real estate veteran, is Revive Real Estate's Chief of Staff. Revive's mission is to guide home sellers through presale renovations without upfront costs. Working with Revive, home sellers gain an average of $140,000 in additional profit when selling their homes.

Thank you to Revive for sponsoring this article on RE Technology!

Related reading

• The ROI of Renovations: Explaining the Financial Potential of Renovating Before Selling
• The Role of Agents in Pre-Sale Renovations: Navigating the Challenges and Opportunities
• Meeting Home Buyer Expectations: Understanding the Millennial HGTV Generation and Their Preferences