As individuals buy their home and then, later on, decide to sell it, new trends are always constantly developing. One of the newest ones for 2020 would be called “Pre-Sale Renovations” Simply put, this is a practice where prospective sellers can still sell their home even if they are concerned about the renovations the home might need. One of the main problems with selling a home that needs a little extra TLC is that sellers simply either do not have the funds to put money into the property or they don’t want to take the risk. However, more and more brokerage firms are springing up that will help front you the money to pay for presale renovations. The beauty of these pre-sale renovation plans is that you can use the proceeds from the real estate sale to pay them back. However, there are many more advantages to this trend. Consider the following:
Ask any real estate professional, and they will tell you just how important it is to properly stage a property before you begin showing it. However, one small problem has always been that sellers were not allowed to make more than just decorative enhancements to their property while it was with a realty. If they wanted to do more than that, about the best a realtor could do was refer them to a contractor. However, the problem remained that the seller still had to dip into their own pockets in order to make improvements to their property. Times have changed for the better, though, because they now have the option of fixing and flipping their own home as long as they have built equity in the home.
Additionally, there are programs of this type that are done in-house, but there are also programs where a real estate will simply refer you to an independent contractor and simply collect on the price of the renovations once the home sells. Yes, it is very convenient, to say the least.
When a real estate firm offers this type of service, it can improve their business and make it more organized. This is because this is another tool that can be added to the real estate agent arsenal, empowering them and motivating them to get more houses sold. However, it also is good for the sellers the real estate agents are working with. Additionally, real estate agents love services like this because it empowers them. They are able to not only sell fully remodeled houses, but also houses that still need some work. Overall, it’s a win-win for everybody!
It isn’t just the real estate agent that will reap the rewards from this type of system. The individual selling their property will reap the rewards as well. First of all, the seller will often be able to find a buyer much quicker, simply because a fully remodeled is easier to sell. Moreover, sellers love this arrangement because they often can get a higher price for their property.
All in all, this is a great way for sellers to get more money for their property. Of course, it won’t work for everyone. If the cost of remodeling the home is higher than the equity the seller has in the property, a real estate company will often reject this arrangement. However, if you have more equity than the cost of your repairs, you should seriously look into this arrangement!