How We Get a 113% ROI on the Homes We Renovate 

For Realtors eager to win listings ahead of the coming summer surge, recommending that sellers renovate before going on the market can seem risky. Why put your relationship with the seller on the line by recommending renovations that might not pay off? With Curbio, Realtors can transform pre-sale renovation from a liability to sure thing. 

For sellers preparing to list ahead of the anticipated summer surgespending money on renovations that aren’t guaranteed to recoup their costs—let alone offer return on investmentcan seem like a risky and fruitless effort. But with an average ROI of 113%, a pay-at-closing model, and new No Loss Guarantee contract option, Curbio offers a risk-free solution Realtors can use to win listings, maximize seller profit and reduce days on market.

Despite the pandemic, Curbio’s renovations have delivered an average ROI of 178% for homes renovated in 2020. This $19,433 renovationfor example, garnered a 538% ROI. You might be wondering, how are Curbio’s numbers so high compared to other studies on renovation ROI? 

The short answer is that pre-sale renovation is drastically different than traditional home improvement and requires a complete reinvention of the renovation process. Not only has Curbio re-invented every stage of the renovation process through the use of modern software, we have also expanded our offerings to provide added support for agents throughout COVID-19.

A singular focus on resale value 

Until Curbio, homeowners had to rely on typical general contractors for pre-sale renovations. But most general contractors are not experts in pre-sale home renovation—they’re experts in executing a homeowners’ vision. Moreover, the homeowner and the GC have competing interests: Sellers must avoid over-renovating and while GC’s want to expand the scope to increase revenue. 

Because Curbio specializes in pre-sale renovation, we eliminate these conflicts. During the time of COVID-19, we can complete renovations with zero in-person contact. To do this, we use virtual estimates where a realtor and sellers can conduct video scans of their property from their phones. From there, Curbio will either renovate the home while it is vacant or cover the cost of relocation expenses for the seller. After the renovation is complete, Curbio offers complementary 3D virtual tour to help the agent sell the house.  

Our Home Improvement Consultant team, made up of former real estate agents, flippers and designers, understands which upgrades will help the home sell more quickly for a higher market price—and which won’t. And since we don’t get paid until closing, we have no incentive to encourage needless renovations that will delay time to market. The result? Smarter renovations with a higher ROI that are safe for the seller and agent.

Buyer-focused renovations

To maximize the return of a renovation investment, homeowners need to understand what buyers in their market are looking for and then select materials, appliances, paint colors, and finishes that will have broad appeal. Quality, cost, and availability must also be considered. And especially as buyers’ tastes evolve during COVID-19, even fewer sellers have the expertise to know which renovations will maximize value.

Curbio’s comprehensive design-build services transform this process. Our Production and Materials Management team studies trends and curates a custom supply chain of the best materials based on local buyers’ preferences. By renovating according to buyers’ tastes, we expand the pool of potential buyers and drive up the sale price of the home.

Data-driven cost control

Many contractors lack a basic system for setting pricing, relying instead on perceived homeowner budget or even how busy they are that month. This is why homeowners often get three proposals that come with very different prices.

Curbio’s technology platform includes a proprietary database which eliminates the typical guess work inherent in contractor bids. All customers get the same fair pricing, based on national pricing data from similar projects that’s adjusted for local markets. Curbio projects will typically come in 20% below the regional average on price.

The traditional materials procurement can also add cost, since most contractors purchase appliances, paint, etc. at retail prices with a nominal discount, or require sellers to purchase materials on their own. The cost and quality are limited by what’s immediately available at the local big box store.

Because Curbio is a national company completing hundreds of projects at a time, we have partnerships with highly regarded national manufacturers. This allows us to drive down costs and ensure availability, without sacrificing quality. Curbio’s onsite project manager handles all materials procurement, eliminating costly delays.

To maximize the ROI for your seller’s listing, without the risk, see if their property qualifies for our new No Loss Guarantee contract option.

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