@properties Launches Renovation Financing Program for Sellers

Sellers working with Chicago-based @properties Christie’s International Real Estate can now tap into a line of credit to spruce up their homes before they hit the market.

@properties, the top brokerage in Chicago by sales volume, rolled out a financing program Wednesday called Concierge, which offers home sellers up to $50,000 for home repairs, staging, landscaping and other non-structural renovations before listing, according to a press release. Sellers repay the loan when the home closes, with no upfront fees.

@properties is joining several major brokerages that offer such a service in conjunction with the financial technology firm Notable. Notable has partnerships with Redfin, Compass, FirstTeam Real Estate and others to offer loans for pre-listing renovations.

The program is partially a response to the demands of buyers, who are increasingly looking for turnkey homes and are willing to spend more to avoid renovations. Bonnie Hawksworth, an agent with @properties in Northwest Indiana, said the program gives agents more confidence to suggest improvements without feeling like they are just adding to a seller’s to-do list.

“First impressions count, and if you can help a client to make their home look good when buyers are there looking, then I think it’s a great resource for that,” she said. “You’re not just suggesting all of these changes and making the burden on the seller, you’re offering that solution to help them pay for it.”

@properties co-founder and co-CEO Mike Golden said in the release that the program gives agents a tool to win listings, and helps sellers prepare their homes for the market.

“Providing fast, easy access to capital removes one of the biggest barriers to bringing a listing to market in optimal condition,” Golden said in a statement.

Through the Concierge program, sellers with homes listed up to $4 million can borrow a maximum of $50,000, or 10 percent of the list price, whichever amount is less. Unlike a standard home equity line of credit, borrowers don’t need to make principal or interest payments until the property sells, the release says.

The loan terms specify the loan must be repaid if the property doesn’t sell within 12 months or the seller ends the listing agreement.

After approval, sellers receive funds through a debit card, cash or check and can choose their own vendors for improvements, according to the release.

Notable Chief Revenue Officer Amorah Sandberg said improvements financed by the company lead to 31 percent faster home sales and 9 percent higher prices on average, with about a four times return on the seller’s investment. She said loans are often used “on the high [return on investment] improvements” that can affect a buyer’s perception and lead to a sale, like painting, staging, landscaping, flooring and other light cosmetic upgrades.

“Most people want a home that’s move-in ready,” Hawksworth said. “Staged homes, or homes that present really well, they spend less time on the market, and they sell for a higher price.”

Last year, Notable partnered with Redfin to provide loans through Redfin’s similarly named Concierge program. The company has provided more than $1 billion in credit to 36,000 homeowners through its lending program, according to the release.

In September, Notable said it raised $6 million in funding led by W.R. Berkley Corporation with participation from Second Century Ventures, the venture capital arm of the National Association of Realtors.