If you’re working with sellers who are debating whether to renovate before listing, the latest data from Zillow is worth paying attention to.
On this week’s episode of The Real Word, Byron Lazine breaks down how agents can share this data with sellers—and a script to make the conversation easy.
Script to Use with Sellers on Pre-Listing Renovations
Zillow’s latest data shows that remodeled homes are getting more attention—and selling for more—while fixer-uppers are losing appeal.
- Homes labeled “remodeled” sell for 3.7% more than expected, adding $13,194 to the typical U.S. home sale.
- They also attract 26% more daily saves and are shared with shopping partners 30% more than similar homes that are not remodeled.
So, when a seller asks, “Should we paint the walls, update the cabinets, or change the hardware before listing?”—you can use this data to guide the conversation.
As Byron pointed out, “A lot of agents will just say ‘No, don’t do it. The market’s moving fast…let’s just get it on the market,” especially for those in a low-inventory climate.
But if the word “remodeled” accurately describes your client’s home, whether at first glance or after some cost-effective renovations, you can use that word (or “renovated”) to get more eyes on your client’s listing—and more offers.
Byron provided a script agents can use to leverage Zillow’s data at the listing appointment.
“Data shows we’re going to get 26% more daily saves if you go ahead and do this, 30% more shares with shopping partners, and it could translate into an additional potential $14,000 on the sale of the home. If you are looking to get the higher price, let’s go ahead and make those renos [or “remodels”].’’
At that point, the seller might be thinking, ‘Wow, this person is coming with stats. This listing agent’s got a strategy—and I want to work with somebody that’s got a strategy around how to get more money for my home.’”
“At the very least,” Nicole White added, “if the seller decides not to do that, you can [explain] maybe why it’s going in another direction.”
Is the Fixer-Upper Era Over?
The above script came as Byron and Nicole wrapped up the episode by answering the question, “Is the fixer-upper era over?” Their consensus: No—but the average agent is probably not equipped to provide the help and guidance buyers need to purchase a fixer-upper and not end up regretting it.
Real estate is cyclical. It’s gonna be there. It doesn’t make sense to buy a fixer-upper for flip, like Nicole says, in a lot of markets right now. And it doesn’t make sense unless you, as the real estate professional, have a solution for your buyer to go into a fixer-upper.
Because if you can’t support them with the right vendors being able to get the job done in a period of time, where to go, how to get it done, a real feel on estimated costs…then you should never tell a buyer to go do a fixer-upper…
If you’re an agent that’s leaving all those problems on your client, then tell them, ‘Fixer-uppers are not worth it. Go buy a remodeled house.’ That’s where you’re seeing more of the demand because it’s a very unpredictable thing to get into.
Byron went on to explain what the market is going to need to close the gap in housing supply: full rehabilitation of older homes across the country. These are homes that were not adequately maintained by their owners, who lacked either the pride of ownership or the funds to keep their homes from literally falling apart.
To keep up with the amount of inventory we need, the rehabilitation, full renovation—not remodel, where you’re sprucing it up—but the complete rehabbing of a property, that is a business model that is not going away.
It (almost) goes without saying that a buyer interested in a property needing that level of attention would have to get it at a price that supports the full rehab.
So, the fixer-upper era, though temporarily subdued according to Zillow, is not over. But as Byron adds, “without having a plan and a strategy for your buyer, it can be really bad advice” to steer them toward homes in need of expensive repairs.
This is where the high-level, experienced agent can make a real difference. This is the agent whose knowledge, experience, and connections enable them to provide a winning strategy for their buyers. This is the agent who is “all the way in it,” who knows all the different attributes of the market, who is exactly what every fixer-upper buyer needs to either renovate or fully remodel a home in a way that maximizes the benefits of taking on that challenge.
Are you that agent for your community?
