Revive Real Estate, a company that provides home sellers with presale renovations, acquired HomePrep, a Washington, D.C.-area based company in the presale renovation space.
The synergies “make this merger seamless, allows us to bring on top talent with deep local knowledge and experience, gives us boots on the ground for our East Coast presence, and help us significantly expand our existing footprint in the DMV (DC, Maryland and Virginia) area,” said Revive Real Estate CEO and founder Michael Alladawi in a prepared statement on Wednesday.
HomePrep president and founder Josh Snyder will become the new head of Revive’s Mid-Atlantic Operations overseeing all production and sales, while Revive establishes new headquarters on the East Coast.
A 14-year industry veteran with a background in flipping homes, Snyder founded HomePrep in 2020. He says the business models of the two companies are almost identical.
“My mission in creating HomePrep was to scale,” he added. “By becoming part of Revive, we are able to immediately offer more services to more homeowners than ever before.”
The HomePrep website says its renovated properties go under contract within a week of listing and if it does not happen, the listing price gets reduced by 2% every month until a contract is in place. The company offers repairs and home value estimates, and gets paid once the property is sold. It says it usually takes one to two months for renovations and a couple of weeks to sell, the company claims.
Revive claims home sellers leave 15-20% of potential profits on the table when a home is not renovated or is ready to be moved into.
The company operates as a home concierge service without upfront costs, offering renovations like interior remodeling and roof repairs, provides renovation estimates and contractors, and gets paid after the home sale closes.
The renovations start within a week and complete within a month to six weeks, promising that once the renovated home is listed, it will sell faster.
A team of in-house designers, planners and construction production workers work on a property and ensure that a contractor is completing quality work on time, according to the statement.
Revive co-founder and COO Dalip Jaggi said one of the areas Revive is facing challenges is in understanding local and regional markets.
“One of the best ways we can do that is for Revive to have someone with local expertise and why, in addition to organic growth, when we find the right fit for an acquisition like HomePrep, it helps us to expand intelligently and profitably,” Jaggi added.
Revive currently operates in all 50 states. Its model helped home sellers receive an additional average profit of $186,000 more after renovations, with a 257% return on investments, the company says.
“You can’t build an amazing relationship with a roofer, because you did one roof with them,” Alladawi said. “We took what is easy for me after 15 years creating this model and establishing relationships and made it available to homeowners because it’s impossible for them to do what we do without risk, stress, time and money.”
In February 2022, Revive partnered with zavvie and in December with Florida-based brokerage The Keyes Company to help homeowners maximize their home equity through presale renovations through their listing agent and the agent’s brokerage.