Renovate now, pay later: Brokerage concierge programs help you fix before you list
“The house definitely had potential. But it looked older and needed to be refreshed.”
When Domingo Fernandez decided to sell his home — a three-bedroom, two-bath Colonial in Brockton — he knew it needed work. There was nothing major, just cosmetic updates that he wanted to complete not only to help sell the house, but also because he felt it was the right thing to do.
“I wanted to sell a ready-to-move-in house to the next person,” said Fernandez, a Massachusetts state employee who now lives in Middleborough. “This was my family’s first home, and I wanted to do it justice to give it a proper send-off as we closed this chapter.”
But Fernandez didn’t have the updates in his budget. So he tapped a program offered by his real estate agent that allowed him to do the work before listing the house — and pay back the costs out of the proceeds at closing.
The program, called RealVitalize, is offered by Coldwell Banker Realty, the brokerage that listed Fernandez’s home. It’s a type of concierge program offered by certain real estate brokerages that allows prospective sellers to complete updates and repairs such as painting, carpentry, landscaping, electrical upgrades, kitchen and bath renovations, and more with no upfront costs. With the RealVitalize program, which has no fees or interest, sellers must use a contractor from Angi. The maximum renovation costs are typically $20,000 to $50,000 and are payable by the seller at the closing, when the listing is no longer in effect, or 12 months after completion of the first job, whichever comes first. If the sales proceeds are not sufficient to cover the RealVitalize project costs, the seller needs to repay the balance within 15 days after the closing.
Alexandra Ventura, a real estate agent with Coldwell Banker in Canton who represented Fernandez, said he was approved for $8,600 in repair costs under the RealVitalize program. That money was used to repaint the exterior of the house, changing the muddy brown color to a bright white that improved the home’s curb appeal. The interior was repainted as well, unifying the décor to a neutral gray color, and the carpeting on the steps leading to the second floor was replaced with wood.
“The house definitely had potential,” Ventura said. “But it looked older and needed to be refreshed.”
The result: After spending $8,600 on updates, the house, listed for $389,000, sold within days for $453,000, or $64,000 over the asking price, after a bidding war.
Other brokerages offer similar programs. Compass, for example, offers its Compass Concierge program, which also fronts the cost of home improvement services, with zero due until closing.
Sam Reifman-Packett, a vice president at Compass in Boston, said that he’s used the program about 10 times and that owners of luxury homes are less likely to take advantage of it than those who own more moderately priced homes. “We pitch it a lot, but most sellers of luxury homes typically don’t want to go that route,” he said. “They usually are willing to pony up the money to get the work done.”
Last year, Reifman-Packett represented the sellers of a house in East Boston who had upgraded the exterior but neglected the interior. “They bought a fixer-upper, and it turned into a money pit,” he said.
The house, however, had potential. So the sellers spent $35,000, $25,000 of which came from the Compass Concierge program, to repaint, fix holes in the walls, install drywall, and replace light fixtures. It sold in less than a week for $1,051,000, or $51,000 over the asking price.
The Compass program does have a cost — a flat fee of $500 or $750, depending on the market, or an interest rate of 5.99 percent, according to a Compass spokesperson. The maximum available varies by market as well. In most states, the limit is $25,000, but in California it’s higher.
Concierge programs, while beneficial to sellers, do come with risk. “If a less-experienced broker tells sellers that if they spend $10,000 their home will go from $600,000 to $700,000, and then he can’t sell it, that’s a risk,” Reifman-Packett said. “That’s why I’m pretty cautious with my pitch. I make sure the expenses are going to be worth it.”
Prospective sellers should vet concierge programs carefully. Terms vary, and some have proved to be more successful than others.
Sellers also should work with an experienced local agent they trust. Successful use of a concierge program depends on the agent’s knowledge of the local market and precisely what repairs — if any — are needed to maximize the home’s resale value.
Robyn A. Friedman has been writing about real estate and the home market for more than two decades. Follow her @robynafriedman. Send comments to [email protected]. Follow Address on X @globehomes and sign up for our free newsletter at Boston.com/address-newsletter.
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