A few weeks ago, I introduced our readers to the fabulous White Glove program I offer my clients through my brokerage TTR Sotheby’s International Realty. This week I want to shine a spotlight on one of our White Glove Partners, Curbio.
One of the biggest challenges a seller faces when selling a home is determining what renovations or repairs should be done to get the house ready to sell and – more importantly – how to pay for it. Curbio has come up with a solution to this dilemma, which is pure genius. I spoke recently with Curbio’s VP of Marketing Rikki Rogers for a deep dive into how it all works.
Curbio was founded in 2017 in the D.C. Metro area. Curbio’s headquarters are in Potomac, Maryland, but it operates in 23 markets nationwide.
Curbio was created to solve a problem that so many home sellers come up against. Every year sellers lose billions of dollars in equity by failing to sell their home at its best achievable price because they don’t make any updates. This is usually for one of two reasons: (1) the seller does not want to deal with the time and stress associated with making updates; and/or (2) the seller does not have the funds available to make the updates because it is tied up in the home’s equity.
Most buyers want a move-in ready home. As a result, homes without updates sit on the market much longer. Even when a home without updates sells quickly, it sells at a considerable discount. The only ones that benefit from this scenario are the house flippers. The investment made in updating a home is typically doubled in the final sales price.
After seeing sellers leave so much money on the table, the founders of Curbio came together to help eliminate the roadblocks to renovation. Our mission is to help sellers flip their own homes instead of letting others get all the profit.
Curbio specializes in streamlined pre-sale renovations designed to achieve the maximum sales price and waits until settlement for payment.
The main difference between Curbio and a general contractor is that renovation costs are deferred until closing. There are other differences, as well. We only perform renovations to get a home ready for sale, whereas general contractors provide renovation services in multiple scenarios. Curbio has a team of designers who study design trends across the United States. Based on the results of this research, we curate and maintain a supply of renovation materials (finishes, appliances, etc.) that generally appeal to buyers. This allows our renovation team to quickly and easily access whatever is needed for a given pre-sale renovation project. This places Curbio in a position to complete renovations more quickly than most general contractors. Our seamless process removes much of the time and stress associated with a home renovation project. And our prices are competitive with that of a licensed contractor.
The first step in Curbio’s process is for the home-seller to request an estimate through the seller’s realtor. We collaborate with the realtor to determine what renovations will be necessary to achieve a target price. Some projects can involve a full home renovation, while others might require less work. And, not every home qualifies for a Curbio renovation; sometimes it does not make sense to do the work.
If the renovation goes forward, the seller will be assigned a Curbio project manager, who will oversee the project from beginning to end. The project manager will order materials, schedule delivery, hire subcontractors, and pull permits when necessary. The project manager will serve as a single point of contact to the seller throughout the entire process. And, the seller has access to the Curbio app to stay informed at every step along the way.
Once the renovation is complete, the home is placed on the market for sale. Curbio does not get paid for the renovation costs until the house sells. We collect payment at the settlement table.
Curbio does not add interest or give a home a certain amount of time to sell before payment is due. Curbio is not paid until the home sells. Only in the event that a seller chooses not to sell, will payment for services rendered become due.
The renovation costs typically range between $20k and $40k. In Arlington, Curbio charges a $15k minimum.
On average, Curbio projects have delivered 113% on the investment. So far in 2020, however, Curbio is seeing a 170% return. This means that the seller earns the money owed for the renovation plus a 70% profit before they even have to pay back the renovation costs.
Curbio follows every regulation in the states where we operate. Curbio is also taking extra steps to keep everyone safe. 3D virtual tours are now being provided to all Curbio clients, for example, to minimize in-person tours and help homes sell. In addition, Curbio is offering relocation reimbursement as an added benefit on a case by case basis.
TTR Sotheby’s International Realty is regarded as one of the highest-performing real estate firms in the United States. With nine offices and over 450 sales associates across Washington, D.C., Maryland, and Virginia, our commitment to professional service, integrity, and community leadership allowed us to capture more than $3.17 Billion in closed sales in 2018, while also serving as one of Washington D.C.’s foremost leaders in corporate philanthropy.
TTR Sotheby’s International Realty
2300 Clarendon Blvd., Suite 200
Arlington, Virginia 22201