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Showing Your Clients that You Understand "Their World"

I stumbled across a very interesting article recently that compared the cost of a particular type of renovation and the impact it had on resale value. As a former real estate agent myself, I’ve always been interested seeing these annual "cost vs. value" reports. In the 2020 report, we see that the renovation that brought back the highest return on investment (ROI), in terms of adding to resale value, was re-facing the house--i.e., the average cost of a stone veneer was $9,357 and the average resale value after such a renovation went up by $8,943, or a 95.6% ROI.

Here is a list of the top 10 cost-to-value renovations in terms of ROI:

  1. Manufactured Stone Veneer (95.6% ROI)
  2. Garage Door Replacement (94.5% ROI)
  3. Minor Kitchen Remodel (approx. $25K reno) (77.6% ROI)
  4. Siding Replacement (Fiber-Cement) (77.6% ROI)
  5. Siding Replacement (Vinyl) (74.7% ROI)
  6. Window Replacement (Vinyl) (72.3% ROI)
  7. Deck Addition (Wood) (72.1% ROI)
  8. Window Replacement (Wood) (68.9% ROI)
  9. Entry Door Replacement (Steel) (68.8% ROI)
  10. Deck Addition (Composite) (66.8% ROI)

Why do I bring this up? I wanted to build upon a recent post by long-time PFRE contributor, Tony Colangelo, in which he talked about the importance of “speaking the agent’s language” when trying to highlight our value to them. I think one of the ways that we can show our value, is by talking about things with your agent clients, that might be relevant (or maybe even important) to them. Being able to speak about “cost-to-value” info--maybe even sending them an email with a link to the "2020 Cost vs. Value" report, just in case they missed it--shows them that you’re thinking about them and what might be important to them in "their world."

Anyway, just some food for thought! If there are other things that you do to give your clients an awareness or evidence of the importance you place on understanding them, then I hope you’ll share them in the comments section.

If you’re interested in the research and/or you want to send it to your clients, you can find a quick summary here. If you’re interested in seeing the complete report, including project descriptions and city-level data, click here.

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