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What Are the Best Ways to Increase the Value of Your Listing?
Owning a home remains the "centerpiece" of the American Dream, according to a recent survey by Bankrate. Nearly 75% of homeowners say it's the highest measure of achievement: more than being able to retire, having a successful career, earning a college degree, or raising a family. Homeownership is one of the most proven builders of wealth. U.S. Census data documents that home equity and retirement savings account for more than 65% of a typical household's wealth. More importantly, homeowners have a median net worth more than 80 times greater than renters. Homeowners know the value of maintaining their homes, but when it comes time to sell a home, they may wonder, "What are the best ways to increase the value of my home?" It's a great question to ask before homeowners get ready to sell and can start planning well in advance. Today's buyers want market-ready homes, and those are the homes that continue to sell the fastest. Fortunately, research and real-world experiences tell us what improvements — big and small — can add immediate value to a home that's getting listed for sale. As someone who has helped purchase, renovate, and resell more than 1,000 homes in Southern California as a successful flipper, here's what I've learned: the marketplace tells you what works and what does not. Smart renovation is the key to improving a home's value before listing it for sale, and every homeowner can benefit from this knowledge. Today, companies like Revive Real Estate, which I helped create to bring the economics of home flipping to homeowners without the risk and the strain, offer every potential seller a way to improve their homes without fronting any of the money. The best improvements to make Real estate is local — and so are, to some degree, local design elements and buyer preferences. Therefore, homeowners choosing what to improve in their home before they list it for sale is crucial to maximizing the selling price. Some improvements will yield much higher returns than others, and which are which depend on both the home and the local market. Before embarking on a punch-list of improvements, sellers need to answer a few questions: Are you looking to keep it simple with visual enhancements? Would functional improvements be beneficial for your home? Could your home significantly benefit from energy efficiency improvements? Is making your home more spacious — or feel roomier — inside (and out) a priority? Once a homeowner understands what they are trying to achieve, it is easier to determine what specific improvements will maximize their sales value. Fast and easy on the pocketbook Almost every home needs a little love, but some need more love than others. Many homeowners who have kept their properties well-maintained are looking for improvements that will help their home sell faster but won't bust their budgets. Minor but higher-impact improvements include: Painting — inside and out Landscaping — make the first impression the best impression Replace appliances New fixtures — from lights to doorknobs Replace or refresh carpet and flooring A new front door Professional deep cleaning Replace all toilet seats Keeping improvements simple for many homeowners is their best path. When a home is well-maintained, giving it a little more love can help increase its curb appeal and make a great first impression when it hits the market. Bigger improvements mean higher seller profits On the other hand, we find the homes that need a lot more love than simple cosmetic repairs. After all, the average age of a home in the US is 39 years; in California, it's 43 years. What presale renovations can make these homes sell for hundreds of thousands of dollars or more? Using Revive research — we've done hundreds of renovations and closely track actual seller profits — these are the major improvements that can get a seller the biggest bang for their buck: Kitchen remodels Bathroom replacement and additions Garage door replacements Replacing HVAC systems New window installations Replacing siding Adding or replacing a deck or patio Mold removal and prevention Finishing a basement Installing outdoor living spaces Keep in mind that many markets offer unique locally related improvements that can also help maximize a property's value. Working with a presale renovation firm, such as Revive, can also help uncover those. From adding a pickleball court to fixing a dock for a waterfront home, the goal is the same: to maximize the return on the sale of your listing. Because major improvements can be costly, that's where a presale renovation firm, like Revive, can help. The process is turnkey: meet with a design team, who will show your sellers the most profitable improvements to make; tap into the Revive contractor network; and often in 90 days or less, the home is ready to sell. Homeowners don't have to hunt for reliable, available and proven contractors, find designers and architects, or scramble to find sources that can deliver quality materials on time to get the job done. They also don't have to assume all risks and liabilities. It's a nightmare avoided. Most importantly, homeowners don't have to scrape together the available cash to pay for the cost of needed repairs and renovations immediately. Finally, when the home renovations are complete, the home is move-in ready: among the fastest-selling homes on today's market. To get an idea of how much impact a presale renovation can have on a home, here are before and after photos of dozens of Revive renovation projects so you can see for yourself the massive profits sellers can earn by making the right improvements. Michael Alladawi, CEO and Founder of Revive, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive to share his spectrum of knowledge and help homeowners maximize their profits when selling their homes.
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Revive Is Changing the Way Homes Are Sold. Realtors, Be Ready for Incredible Opportunities!
Unlike a finely aged wine, homes that show signs of aging are not going to pique the interest of potential buyers, let alone capture the attention of image-driven millennial home buyers (the highest market share at 43%) when they are online shopping. In the U.S., the median age of a home currently stands at 39 years old. In California, the state with the most housing stock, that number increases to 43 years old. And while some could argue that being in your 40s is simply the new 30s, think about how much style has changed since the 70s – even the 80s! (Do any of you remember the glass brick phase? Yikes...) The fact of the matter is, while some design styles return hotter than ever, most do not, at least not all at once. And so, the need for renovations and improvements grows. But hey, maybe your client is a homeowner who's on the fence about whether or not it makes much of a difference to renovate their home before you, their Realtor, puts it on the market – it makes a huge difference! Here's why. Again, it's all about what the buyers want. Millennials prefer move-in-ready homes. Research shows 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. That's huge. One of the biggest annual home buyer studies also found most recent buyers who purchased new homes were looking to avoid renovations. While most homeowners getting ready to sell their homes would benefit largely from pre-sale renovations, most lack the funds, time, or industry insight needed to make them happen. And, so, a change began. The move-in ready movement An innovative new solution for homeowners emerged, becoming one of the hottest real estate movements today. It's known as the concierge category, which includes companies like Revive Real Estate—a presale renovation firm that specializes in $0 down, pay-when-you-sell, major and minor remodeling. It gives homeowners the option to turn their as-is property into the move-in-ready home today's buyers want. Still, sellers have two options. First, there's the DIY (do it yourself) approach. But for most home sellers, undertaking even minor improvements is too daunting. Why? Well, there's the hunt for reliable, available, and proven contractors – which is especially tough in today's market, not to mention having the available cash to front the cost of needed repairs and renovations. Add in the time to meet with the designers, contractors, and hunting down the right materials to get the job done, it's a nightmare. A DIY project quickly becomes a hurry-up-and-sell project which causes homeowners to lose out on thousands of dollars! When sellers go at it alone, they also assume all risks and liabilities, and that's often something most homeowners would rather avoid. Despite the best-laid plans, ask anyone who has undertaken a kitchen or bathroom remodel, and they are likely to tell you that when you involve multiple contractors, you are at the mercy of their schedules. But this is nothing new! Many people already understand these are common concerns. Thankfully, there's another option. You bring in the experts. The BIG $$$$ benefit Working with an experienced and proven firm like Revive gives homeowners more than just a move-in-ready home to put on the market. It gives them, as home sellers, the opportunity to maximize the sales price of their home. What does that mean in actual dollars? Most sellers who sell their homes as-is leave 15-20% in potential profits on the table. Imagine leaving hundreds of thousands of dollars in built-up equity behind. That is life-changing money! Revive homes sell for more – a lot more. In fact, the average Revive home seller nets over $186,000 more by undergoing pre-sale renovations. The return on their investment – using Revive's funds, not their own ­­– is a stunning 257%. The average net return to Revive home sellers is even higher in higher-priced markets where homes are often worth more than $1 million. The smart way to renovate When Revive works with a homeowner and agent to get a home ready to sell, they are partnering with a team that includes a property advisor (the point person for improvements), in-house designers, and other real estate specialists. Because knowing what to improve is the secret to unlocking the greatest value the home has to offer. Revive's design team has that knowledge. The biggest mistake in home improvement is fixing and replacing the wrong things. Every home is different, and having current market knowledge of what homes are selling and why is vital to the renovation's success. Smarter renovation means more than just knowing the trends – it also is knowing what materials are available and properly priced. Home sellers want to stay on time and budget and still maximize the value of their improvements. That's where Revive's expertise excels. Quality is also paramount – you can't settle on a contractor simply because they are the only ones available. Revive maintains a network of fully vetted, experienced contractors who are loyal to Revive because of the unmatched support they get and the steady stream of work they get from Revive. Revive keeps its contractors busy and focused on what they do best, the work, with Revive handling their back office support, material sourcing, ordering, scheduling, and more. Curb appeal attracts more prospects. Pre-sale renovations make homes market-ready, and that also means improving the curb appeal. After all, you don't get a second chance at making a first impression, and that's why homes with excellent curb appeal sell faster – and for more. Curb appeal sets the tone of what home buyers can expect to see when they step inside. Securing a positive first impression through exceptional curb appeal sets the stage for a sale. And the nicer your curb appeal, the larger number of prospects you will attract. In fact, homes featuring well-kept lawns and professional landscaping sell for 7% more than similar homes without! The Washington Post reported that 87% of home buyers rely on photos when house hunting. Those professionally photographed homes showcasing their features, including their curb appeal, sell 32% faster than other listings and net a 47% higher asking price per square foot. Different types of renovations – what makes sense? Getting a home in move-in-ready condition is a huge undertaking and varies from property to property. Real estate professionals and home sellers can benefit by having a team of Revive experts who do this daily. Revive takes on projects from big to small. There are no project minimums or maximums, and every project is designed uniquely to that home's unique design and neighborhood style. Minor fixes with Revive Interior painting Exterior painting Appliance replacement Roof repairs Carpet and flooring Window repair Door replacements Deep cleaning and professional staging and more Major improvements with Revive Kitchen remodels Bathroom replacement and additions Roof replacements HVAC replacement Window new installations Mold removal and prevention Basement finishing Deck and patio installations Outdoor living spaces and more Many markets also have unique locally related improvements that can maximize the property's value. Revive can help uncover those as well. From repairing a dock for a waterfront home to building a complete entertainer's space in the backyard, Revive's goal is to maximize the return on the sale of the home. Bottom line: Revive homes sell for more and sell faster. When completed – often within 90 days or less – Revive homes are move-in ready. Homes renovated with Revive often massively increase a seller's asking price, creating significantly more wealth for the seller. Just look at all of the case studies that provide the before and after photos of dozens of Revive renovation projects here to see how much more sellers made using Revive. And the best part? In addition to Revive fronting the money for the cost of renovations, there is no interest, fees, or financing charges due from the seller or agent. Revive is a win-win-win-win for homeowners, contractors, agents, and brokers too, because everyone benefits when a home is renovated to sell for its highest price. Jessica Morrow, a seasoned real estate veteran, is Revive Real Estate Head of Operations. Revive's mission is to guide home sellers through presale renovations without upfront costs. Working with Revive, home sellers gain an average of $186,000 in additional profit when selling their homes.
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New Classes for Real Estate Agents Unlock How to Work with Home Builders
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A Newly Built Home Sounds Great. But Ballooning Borrowing Costs Could Crush New Home Buyers
Over time, more than half of homebuyers would prefer to buy a newly-built home over an existing home. More than 10% of U.S. home purchases are from buyers of new homes. In many ways, that's no surprise, as new homes can be specified for buyer preferences, are extra clean, energy efficient, require less maintenance, and are move-in ready at the time of purchase. But right now, the market for newly built homes has never been trickier. It's not just difficult to build or buy a new home – agreeing to an offer on a new home could be a financial risk your clients can't afford. Learn why borrowing costs are skyrocketing and what your buyers should consider when deciding whether to agree to a contract on a new home. Why Are Borrowing Costs Rising? The costs of borrowing for a home loan are surging because interest and mortgage rates are rising at their fastest clip in decades. In fact, the current average mortgage rate on a 30-year fixed-rate mortgage is 5.7%. For much of 2020 and 2021, the 30-year fixed-rate mortgage sat below 3%. Because of persistent inflation and the Federal Reserve's commitment to hiking interest rates throughout 2022, mortgage rates are primed to increase more this year. For borrowers, this is tough news. The rise in mortgage rates means hundreds of dollars more in monthly home loan payments, which can add up to tens or even hundreds of thousands more dollars spent over the course of the loan. Why Are Buyers of Newly Built Homes Vulnerable to Mortgage Rate Increases? Mortgage rate increases are difficult for all homebuyers. But buyers of newly built homes pay the heftiest financial price when mortgage rates rise. Traditionally, new home buyers sign a contract and pay a deposit several months before their home is ready. The time between signing a contract and moving into a new home has recently expanded even further – sometimes by up to a full year – due to lingering supply chain issues and building delays. Buyers of existing homes, on the other hand, typically sign a contract and pay a deposit shortly before their deal closes. This means that the risk of being burned by rising interest rates is especially acute for new home buyers. Just consider a buyer who paid a deposit on a new home last summer, with the expectation of moving in by June 2022. A year ago, that buyer's loan estimate had an interest rate under 3%. Now, mortgage rates are well above 5%, meaning that monthly mortgage payments will be hundreds of dollars higher than initially anticipated. And walking away from the deal is an unappetizing option – usually, buyers who do so sacrifice their initial deposit. How Can Buyers of New Homes Approach Rising Interest Rates? Clearly, agreeing to a contract on a newly built home involves an element of risk. But buyers – including your clients – can explore strategies that insulate them from further mortgage rate hikes and increased borrowing costs. The most common tactic to blunt the effects of rising interest rates is agreeing to a mortgage rate lock. With a mortgage rate lock, buyers lock in a specific mortgage rate, in exchange for what is usually a few hundred dollar fee. Mortgage rate locks usually come in 30, 45, or 90 day increments, but buyers can also agree to nine-month or 12-month rate locks if they agree to a price above the current 30-year fixed interest rate. For buyers of newly-built homes, a longer rate lock may make sense. Since mortgage rates are expected to be much higher in six months or a year, agreeing to a longer-term rate lock can save borrowers tens of thousands dollars over the course of a home loan. In addition, new home buyers can navigate interest rate hikes by considering an adjustable-rate mortgage (ARM), or purchasing discount points on their mortgage. An ARM offers buyers an initial five, seven, or 10-year rate that's significantly lower than a standard 30-year mortgage. In return, buyers agree to pay a much higher interest rate once this "teaser" rate expires. ARMs generally make the most sense for buyers who plan to sell their home within the span of their "teaser" period. If your clients are purchasing a newly-built starter home, or are convinced they will be able to refinance their rate in the future, an ARM may be a worthy choice. Discount points are fees a buyer pays to reduce their mortgage interest rate and monthly payment. For buyers who plan to stay in their new home for the long-term, discount points can pay off, as the price to "buy down" the interest rate is eclipsed by monthly savings on the mortgage. Overall, buyers of newly-built homes must be aware that rising interest rates and borrowing costs have the potential to blow their budget and cost them their dream home – so having a plan to deal with rising rates is a must. To view the original article, visit the Homesnap blog.
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New Classes Teach Real Estate Agents How to Work with Home Builders
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Real Estate Agents Invited to Study How to Work with Home Builders
HomesUSA Alliance, founded by the real estate industry giants Ben Caballero and Bob Hafer, is inviting real estate agents to register for its online new home sales education coursework available in February and March. Real estate agents in Texas can earn continuing education credits required to maintain an active state real estate license. Real estate agents completing the six different classes offered will receive a new home sales certification. The Alliance has already helped more than 4,000 real estate sales professionals learn to work with home builders better. Available remotely via Zoom, agents can sign up for the entire two-day program or individual classes. The next two-day series of classes are on Wednesday and Thursday, February 16 and 17, and Wednesday and Thursday, March 16 and 17. Registration is online at the HomesUSAAlliance.com website on its Calendar page and is open to agents throughout Texas and nationwide. Hafer, who created and taught the coursework, notes that individual classes include "Building Your Real Estate Business Through New Home Sales," "Everything You Need to Know About New Home Construction," "How to Recognize a Green Built New Home," "How to Successfully Negotiate with a New Home Builder," "Understanding New Home Builder Contracts and Addendums," and "New Home Blueprint for Realtors." The Texas Real Estate Commission approved the classes for continuing education (CE) credits. Agents can earn 11 credits from the six courses during the two-day program. Priced affordably at $200, once agents complete all six CE courses, they will earn their New Home Sales Certification from HomesUSA Alliance. "Riches are in the niches," said Ben Caballero, America's top new home sales specialist and No. 1 ranked real estate sales professional. "Agents who learn how to work with home builders gain a specialization that can help them significantly grow their business," he added. Hafer points out that the Texas Real Estate Commission requires agents to take 18 hours of approved Continuing Education credit every two years. "Agents completing our new homes coursework can complete about two-thirds of their two-year requirement in just two days." "Most importantly, we provide agents with information about how to work with builders that's not available anywhere else," added Hafer.
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Why Builders Can't Keep Up with Home Sales
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Following the Money: Is Proptech the Pied Piper or the Savior of Commercial Real Estate?
Proptech is advancing all areas of commercial real estate from developments in building innovations and blockchain technology to smart homes and green tech. If you are a commercial real estate agent, you are noticing the change. Globally, real estate is the biggest industry and depending on where the data comes from, its value ranges from billions of dollars to trillions of dollars. That is a lot of money coming from one sector with investors throwing more into proptech innovations daily. So are all these changes in technology making the road to success easier or are they leading you down the wrong path? Tech investors are flocking to the real estate industry because they envision a future that allows you to better share information, control energy consumption, and improve construction workflow. Precise Information Change is good. Without the use of current technology, it would be virtually impossible to do business in today's commercial real estate market. Technology has allowed you to precisely measure square footage calculations, visit properties through 3D tours and submit all legal documents necessary through online methods. Simply put, proptech and CRE go hand in hand and incorporating them into your daily routine is essential. You cannot afford to fall far behind in your use and understanding of proptech, or you stand to lose your way. Data Commercial real estate deals with a huge amount of data. Everything from contracts and legal documents to building information and management operations. There is a need to provide easier and faster ways to source and transmit data. Enter the technology sector. Tech investors are jumping into the billion-dollar real estate industry to satisfy the need. According to Prescriptive Data in 2019, there were over $31 billion VC proptech investments. Companies are investing in ways to supply better and more accurate ways to deal with all the data through a variety of innovative methods. Blockchain Blockchain technology is not just for cryptocurrencies, it takes on a whole new meaning when delivering information in the commercial real estate industry. This developing proptech helps to easily maintain and control transactions in a very transparent way. Future audits of facts and figures are simplified through the use of blockchain technology benefiting you as a real estate agent by allowing verification of transactions quickly and easily. Reducing risk and streamlining processes are just some of the perks you can look forward to. Construction Management It's no simple task to construct a multi-level building from the ground up. Proptech building information modelling (BMI) will help in the planning, construction and management of a building's infrastructure for the entire lifespan of the property. You will be able to see real estate floor plans in 3D transformed entirely from hand-drawn sketches in a matter of a few seconds. Not only does this technology help everyone involved from architects and engineers to construction companies, but it will help provide current information to any prospective purchaser. Investments and Operations In a commercial real estate transaction, you need ways to accurately supply information to assist in your real estate marketing plan. Current proptech trends are developing ways to supply real-time data allowing management to make better-informed decisions. Up to the minute statistics on a property's history, neighborhood details and current ownership costs will provide for better ways to estimate the value and future value for decision making. Smart technologies will be able to monitor various algorithms and adjust for safer and greener environments. Monitoring airflow and energy consumption are just a few benefits of proptech innovations. All this translates into buildings being more attractive in rental markets for both the purchasers and end-user. Benefits for Real Estate Transactions Critical data for both commercial and residential properties will be available to include geo-location technology for planning and development purposes. Details on topography, flood zones, and soil stability will speed up the process necessary for construction and redevelopment sites. For real estate agents and lawyers, property transactions will be verified instantly for legal documents, land titles and transfer of ownership. Through advancements in technology, all of a building's information can be digitally transferred in a matter of minutes. Waiting for week-long responses to register a sale will soon be a thing of the past. Technology and CRE have travelled on different roads for a long time. But the future is clear, following the money trail could lead you on a path to success.
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6 Ways to Construct the Perfect Builder/Realtor Relationship
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How to Boost Your Business When You Partner with a Builder
You Can Grow Your Revenue Stream by Creating a Relationship with New Home Builders Many would-be buyers begin their house hunt from existing housing inventory while others turn their homeownership dreams into reality with a custom-built home in their local communities. When you partner with custom home builders, you open the door to a whole new revenue stream for your real estate business. Creating a working relationship with custom home builders is a win-win-win for you, the builder, and the home buyer. At the same time, you add more value for buyers who've purchased land—streamlining their journey to the new home they want. It also works in reverse: Your builder partner can refer their clients to you to help them acquire the land they need. Either way, you can earn a commission as clients go forward. On top of a boost in revenue, you'll raise visibility for your land listings among buyers who urgently need them. Selling sales associates can also acquire more leads since builders often work with clients who need to sell an existing home to finance new construction. What Can Sales Associates Offer That Builders Need? You might wonder – what motivates a builder to partner with one sales associate over another? Many builders minimize uncertainty by working with the same title company and lender for every transaction. That helps ensure closing takes place on schedule and prevents them from absorbing carrying costs for completed stock. The builder-sales associate relationship can be just as vital for sales associates willing to commit to one or more specific builders. In any partnership, there needs to be a mutual commitment to promoting and benefiting the other party. Luckily, there are lots of ways sales associates can be indispensable to a chosen builder. Sales associates are experts at "translating," so builders and buyers don't end up talking past each other. They ensure that buyers understand the terms of sale, then work with the builder to ensure everything is delivered as agreed. Buyers love the chance to participate in the design and select finishes, but the fun stops if they feel misled. A sales associate orchestrates the process so all expectations are met. The sales associate's role is even more visible in new home communities. Actively promoting a builder's community fosters rapport. That feeling of reciprocity can make it easier for your future clients to get special requests incorporated into their new builds. First Steps for Creating a Builder Partnership Buyers of custom construction homes are often on their second or third property. You can maximize the value you offer by providing sales support for their existing home. This streamlines the transaction and benefits everyone involved by getting buyers to closing faster. To make the biggest splash with a builder, get to know their offerings inside and out––literally. Ask to visit recently-constructed homes, and those homes still in progress to get a sense of the process. Find out what the builder considers their key selling points so you can communicate them in ways that are truly meaningful for buyers. Familiarize yourself with all the available floor plans and add-ons so you can match options to each buyer's needs. Last but not least, interview builder representatives and find out the kinds of questions buyers have asked them in the past. Builders often look for partnerships with sales associates when they have been burned by unqualified buyers. By putting in face-time and doing your research, you will demonstrate to a prospective partner you're in this for the long haul. New construction is a lucrative area where you can expect cycles of strong growth. Not only that, but it's also exciting and fun for sales associates and buyers alike. Get Started Promoting Your Partnerships Delta Media Group® has made it easy to feature home builders, their communities on your website. Spotlight the builders, their communities, and model homes you represent on your website using DeltaNET™️ 6 and its Builder Showcase feature. Add a detail page for each builder highlighting their company details, inventory listings, and open houses. Call special attention to model homes. Adding Google maps to these pages, your website visitors can find these communities and listings easily. You'll be able to add floorplans, plat maps, brochures, and videos for potential buyers to view. Promote upcoming open houses on your website too. Find the right builder in your area, and your partnership could be the platform that brings you both to the next level. Not getting your copy of Delta Media Group's magazine, Real Estate Marketing & Technology? Sign up today. Your subscription is free. To view the original article, visit the Delta Media Group blog.
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How to Sell Property 'Off the Plan' in 72 Hours... even if you've never done it before.
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Are You Marketing New Construction Homes Correctly?
Introduce Buyers to Builders and Their Communities on Your Website Many buyers opt for new construction homes over existing homes, especially in markets where a lack of housing inventory exists. No matter why a buyer is opting to build a house, marketing new construction homes is often a challenge for real estate businesses. The new construction market is strong, but you may still have to adopt new tactics to market newly built homes to your audience. Get started with these steps to market new construction homes to your clients.
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Top-Ranked Real Estate Agent Ben Caballero Issues New Podcast Episode
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Marketing New Construction Homes: What Real Estate Agents Need to Know
New construction homes are a popular choice for many buyers, especially in markets where a lack of housing inventory exists. No matter what the reason a buyer is opting to build a house, marketing new construction homes often presents unique challenges for real estate agents. The market for new construction is strong, but you may still have to adopt new tactics to market new construction homes to your audience. Get started with our guide on what real estate agents need to know about marketing new construction homes.
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How to Help Me as a First Time Home Builder
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Develop Online Applications with dataFloat
IDC Global is a software development company that focuses on database and data processing specialized to improve the performance of Internet and other networked applications. Their new product, dataFloat, offers significant improvements in performance and scalability for Internet and mobile applications and also allows clients to develop e-business and multilingual applications easier and more efficiently.
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