One Sotheby’s launches pre-listing renovation company
Plan is for a One Sotheby’s agent to list the property after renovations completed
UPDATED, Nov. 13, 12:10 p.m.: One Sotheby’s International Realty is launching a firm that will pay for and manage renovations of homes throughout South Florida, betting that the investments will pay off when the homes sell.
The new company, called Elevate, will handle the entire renovation process, starting with evaluating the upgrades and renovations that should be completed before a home or condo hits the market, to handling the design and permitting, as well as assembling contractors, materials and completing the projects, said Daniel de la Vega, president of One Sotheby’s and head of Elevate.
Based on a contract with a seller, Elevate will pay for the renovations, and will get paid back when the property sells, or within a year of it hitting the market, or if the seller decides to change listing agents at any point. Any price point applies, but generally a seller should have 75 percent equity in the home, according to de la Vega.
Projects would go through a “know-your-customer” process. Agents can fill out a form that will be reviewed by administrators at Elevate. From there it would go to the design team, and then to Elevate’s owners for final approval.
The seller would benefit if a property sells for a higher price once renovated. The upgrades can range from smaller fixes such as landscaping and paint, to larger renovations that call for overhauling kitchens and other work, requiring permits. The property won’t hit the market until the renovations are completed. Elevate is partnering with Linéaire Designs for the architecture, design and construction work.
“We’re benefitting our agents by adding this value to their arsenal of tools,” de la Vega said. “The agents get a higher commission, the clients get more money. Everybody’s happy.”
The pre-listing program is available in Miami-Dade, Broward and Palm Beach counties, but de la Vega said the concept is scalable and he plans to take it to other markets. Since launching two weeks ago, Elevate has about $2.5 million in renovation jobs lined up, he added.
Compass has a similar program called Concierge, which covers upfront costs for staging and cosmetic improvements, with the sellers repaying the cost of repairs after the sale closes. The company recently launched an AI-powered tool to help homeowners visualize improvements and determine what upgrades to make.
Miami-based One Sotheby’s has been expanding in recent years. In August, the brokerage closed on the acquisition of Decorus Realty in Sunny Isles Beach, adding more than 140 agents to the firm.