How to Help Homeowners Cash in on the Full Value of Their Biggest Asset

Every year, homeowners lose billions of dollars in equity when selling their homes. Curbio helps homeowners unlock the full profit potential of one of their biggest investments.

The condition of a home is one of the most critical drivers of its sale price. According to BMO’s “Psychology of House Hunting” report, 71% of home buyers are afraid of buying a home that needs work. The majority of current buyers are looking for “move-in ready” homes in hopes of avoiding the stress and expense of fixing up a property after purchase. As a result, homes that are outdated or in need of repair tend to sit on the market, attract low-ball offers from flippers, and eventually sell for well under fair market value.

Nevertheless, many homeowners don’t renovate their homes before listing because they assume it will take too long, be too overwhelming, or cost too much. They dread the process of finding reliable contractors, selecting materials, and coming up with the cash to pay for it all. Many decide to list their homes without updating, and then hope for the best.

Unfortunately, opting out of pre-sale renovations drastically reduces their potential proceeds. In 2018 alone, real estate investors made more than $14 billion in gross profits by buying, renovating, and selling outdated homes—profits that could have been earned by homeowners, had they chosen to renovate before listing.

By partnering with Curbio, agents help their clients renovate their homes before listing without the upfront costs, stress, and time commitment involved in a traditional home renovation project.

A Convenient, Hassle-Free Solution

Curbio eliminates the biggest obstacles to pre-sale renovation: funding, stress, and time.

First, our “renovate now, pay when you sell” model allows homeowners to pay for the renovation through the proceeds of the sale at settlement. There’s no need to secure a loan or move funds around to free up the cash for a deposit. Curbio defers payment for renovations until the home is sold, with no deposit or finance charges, and no deadline to sell the home and pay for the work. Whether the house sells in six days or six weeks, the cost to the seller is the same.

In addition to the convenience of paying at closing, sellers and their agents won’t waste time poring over paint samples or trekking to the hardware store. Curbio has curated a portfolio of materials—from paint and floors to appliances and cabinetry—that are ready for installation as soon as the project begins. Our local Project Managers handle the entire renovation so neither homeowners nor their agents have to lift a finger. Curbio handles ordering materials and managing subcontractors, and provides weekly updates to agents and homeowners through the user-friendly Curbio app.

Because of our simple, streamlined process, projects are completed in weeks not months, and homes we renovate spend 58% fewer days on market than the average listing.

Pre-Sale Renovation Expertise for Maximum ROI

Renovating a home in preparation for sale is completely different than a typical home improvement project. When renovating to sell, homeowners must

  • Prioritize projects that will attract buyers and broaden a home’s appeal
  • Choose materials based on potential buyer’s tastes, not their own
  • Understand which renovations will increase sale price in their specific market

Since it requires a completely different approach, working with a traditional general contractor on pre-sale renovation is a nightmare for sellers. Sellers want to get to market quickly; GC’s aren’t deadline driven. Sellers want to focus on renovations that deliver ROI; GC’s want to expand the scope to increase revenue. Sellers want guidance on attracting buyers; GC’s want the homeowner to pick out and order their own materials. Sellers want to spend their time preparing for the next chapter; GC’s require constant oversight.

Because Curbio exclusively renovates homes that are about to be sold, our process is designed to accelerate renovation speed and maximize the resale value of the home. We stay on top of market trends and pre-select materials that we know homebuyers love. We also collaborate with local real estate agents and leverage their expertise about which renovations will help a home sell in their territory. By handling hundreds of pre-sale home renovations every month, we have the knowledge, data, and experience necessary to make sure renovations go smoothly—even when unexpected issues arise.

The fact that we don’t get paid until closing means that Curbio, homeowners, and agents are on the same team and share the same goal. We want to help homeowners sell their houses for the best price, quickly, so we can be paid for our work. This is why we only suggest renovation projects that we know will add to the market value of the home—meaning no “upselling.”

The result of our focus on pre-sale renovation is a huge lift in list price and net proceeds for sellers. On average, homeowners who renovate with Curbio see an ROI of 209%.

Simplifying Pre-Sale Renovation with Technology

We use proprietary technology through the renovation process to ensure projects start quickly, finish on time, and cost less. Our tech-enabled approach includes

  • Data-driven pricing that lets us bid on projects without stepping foot in the home
  • Virtual walkthroughs that let our team tour the home with agents and homeowners anywhere, anytime
  • The Curbio app that shares progress photos and status updates with homeowners and sellers

The end result of our technology is more convenience and less stress. Agents and sellers don’t have to play phone tag with multiple contractors, leave the office to meet them for an estimate, and chase them down for status updates. Instead, they request an estimate through the Curbio app and participate in the virtual walkthrough from anywhere with an internet connection. They can review our proposal and sign the contract right from their phone, and each week they can review, comment on, and share photos of the project that are uploaded by their Project Manager to the Curbio app.

Homeowners Trust Their Realtors, and so do We

Realtors know the market. We know renovation. Our partnership with real estate agents is critical in helping homeowners achieve the full profit potential of their homes. In fact, 100% of our business comes from real estate agent referrals, and we only work with sellers who are represented by a real estate agent.

It’s obvious why we enjoy working with realtors, but they also love working with us. We help them take off their hard hats and focus on selling homes, instead of managing their client’s renovation projects. And because Curbio is operating in seven markets and partnering with agents from nearly every major real estate brokerage, agents know they aren’t putting their reputation on the line when they introduce their clients to Curbio. Agents who work with Curbio become their sellers’ hero and earn a lifetime of referrals.

Homes are filled with a lot of memories, but they’re also among homeowners’ biggest investments. When it’s time to move on—for any reason—homeowners want to make sure they’re achieving the full profit potential of their homes so that they can move on comfortably. Curbio can help do just that with our one-of-a-kind, turnkey, pre-sale home renovations.

Sources: National Association of Realtors, BMO Psychology of House Hunting Report, ATTOM Data 2018 Home Flipping Report