Remodelers and real estate agents make a good team, especially when it comes to foreclosures. At least that’s what the folks at Max Butterworth Co., a veteran remodeling and custom home company in Henderson, Nev., are banking on.
“Foreclosures aren’t typically left in good condition, so people are looking to fix them up again,” says general manager Eric Vaughn. “We’ve been trying to build relationships with real estate agents here in Vegas. They’re definitely seeking commissions on this kind of thing.”
A typical profit margin for the company is 15%, says Vaughn, “but we could go as low as 12% and give 3% to the agents. That way the agents have an incentive to look out for themselves.”
Vaughn fears that Las Vegas isn’t continuing its pattern of being the last area to experience a downturn and the first to rebound. “I’d like to think that we’ve hit bottom, but with so many foreclosures, it feels different this time.”