Revive Real Estate, which provides presale renovations for home sellers, has acquired HomePrep, a Washington D.C.-based company in this space.
The synergies “make the merger seamless”, allows us to bring in top talent with deep local experience, boots us on the ground for our East Coast presence and help us significantly expand the existing footprint in the DMV area (DC, Maryland, and Virginia),” said Revive Real Estate CEO and founding member Michael Alladawi in prepared statements on Wednesday.
HomePrep founder Josh Snyder will be the new head for Revive’s Mid-Atlantic Operations, overseeing all production and sales. Revive also establishes a new East Coast headquarters.
Snyder, a 14-year industry veteran who has a background in flipping houses, founded HomePrep in 2020. He claims that the business models of both companies are almost identical.
He said, “My mission in creating HomePrep had been to scale.” “By joining Revive, we can immediately offer more services for homeowners than ever before.”
According to HomePrep, a property that has been renovated is sold within one week of being listed. If it doesn’t happen, the listing price will be reduced by 2% each month until a contract is in effect. The company provides home value estimates and repairs, and is paid once the property has been sold. The company claims that it takes between one and two months to renovate and only a few weeks to sell.
Revive claims that home sellers who do not renovate or are not ready to move in their home lose 15-20% of their potential profits.
The company is a home concierge service that does not charge upfront. It offers renovations such as interior remodeling, roof repairs, and estimates for contractors. After the sale of a home closes, it gets paid.
The renovations take about a week to complete. Once the home is listed, it will likely sell faster.
According to the statement, a team of in-house planners, designers, and construction workers works on a property to ensure that a contractor is doing quality work on time.
Revive founder and COO Dalip Jaggi stated that understanding regional and local markets is one of the challenges Revive faces.
Jaggi said, “One of our best ways to do that is for Revive have someone with local expertise. This is why, in addition organic growth, it helps us expand intelligently, profitably, when we find a right fit for an acquisition such as HomePrep.”
Revive currently operates across all 50 states. The company claims that Revive’s model has helped home sellers make an average profit of $186,000 after renovations and a 257% return.
Alladawi stated that a roofer can’t create a great relationship because they only have one roof. “We took what was easy for me after 15+ years of creating this model and building relationships, and made it available for homeowners because it’s impossible to do what I do without risk, stress and money.
Revive partnered in February 2022 with zavvie, and in December with Florida-based brokerage The Keyes Company. This partnership enables homeowners to maximize their home equity by presale renovations through their agent and their brokerage.