Using "Potential Value" to Close Fixer-Upper Deals

We’ve all had that showing. You walk into a house with a buyer who has a healthy budget but a limited imagination. They see the peeling linoleum, the 1980s oak cabinets, and the “lived-in” scent of three decades of history. You see a $200,000 equity gain waiting to happen.

In the past, Realtors had to rely on mood boards and “trust me” hand-waving to sell a fixer-upper. But in 2026, the market is too fast, and buyers are too data-driven for guesswork. To close a deal on a property that needs work, you need to shift the conversation from what the house is to what it will be.

At Kukun, we call this selling the Potential Value. Here is how the most successful agents are using our B2B suite (specifically PrepToSell and the PICO™ Score) to turn skeptics into homeowners.

The Fixer-Upper Friction: Why Buyers Walk Away

Most buyers are terrified of the “unknown.” When they see a house that needs work, they don’t just see a project; they see a bottomless money pit. According to the National Association of Realtors (NAR), homes in “average” or “poor” condition can sit on the market 30% longer than renovated comps.

The friction points are usually:

Overestimating Repair Costs: Without data, a buyer might think a $20,000 kitchen remodel will cost $60,000.
Underestimating Post-Reno Value: They can’t see the “ceiling” of the neighborhood.
Renovation Fatigue: They don’t know where to start or who to hire.

As a Realtor, your job is to remove these obstacles before they even ask for the disclosures.

Weapon #1: The PICO™ Score (The “Credit Score” for Homes)

Just as a FICO score tells a lender about a person’s financial health, the Kukun PICO™ Score tells a buyer about a home’s physical health.

The PICO™ score (Property Investment and Condition) is a 300-850 rating that aggregates permit history, age of systems (HVAC, roof, plumbing), and renovation data. For a Realtor, this is a goldmine.

Low Score? Use it for Negotiation: If a house has a PICO™ score of 450 because the roof is at the end of its life, you can show the buyer exactly why the price is adjusted.
High “Structure” Score? Sell the “Bones”: If the interior is ugly but the PICO™ score shows the “guts” (permits for electrical and plumbing) are solid, you have a data-backed way to prove the house is a safe investment.

Weapon #2: PrepToSell (The ROI Blueprint)

The PrepToSell tool is designed specifically for agents to provide a “Future AVM.” Instead of showing a buyer what the house is worth today, you show them a professional report of what it could be worth after a strategic $50,000 investment.

How to use PrepToSell at an Open House:

Don’t just hand out a flyer. Hand out a Renovation Impact Report.

Select the Projects: Pick the three highest-ROI upgrades for that specific house (usually kitchen, primary bath, and curb appeal).
Run the Numbers: Use Kukun’s localized 2026 data to provide accurate cost estimates.
Show the Gain: Show the “Post-Renovation AVM.” When a buyer sees that a $40,000 kitchen adds $75,000 in equity, the “work” feels like an “earning opportunity.”

Bridging the Gap Between AVMs and Reality

Traditional Automated Valuation Models (AVMs) are notoriously bad at pricing fixer-uppers. They look at square footage and zip code, but they can’t see that the house has an original 1960s furnace. This often leads to “overpriced” fixer-uppers that don’t move.

By using Kukun’s Future AVM technology, you can correct the narrative. You can show that while the current AVM is $600,000, the investment potential is $850,000. This is the “Secret Weapon” that moves investors and first-time “mortgage hackers” to pull the trigger.

FAQs: Closing the Fixer-Upper Deal

Q: How do I handle a buyer who is scared of “permitting nightmares” in 2026? A: This is where transparency wins. Use the Kukun My Neighborhood feature to show them the history of the neighborhood. If other houses on the block have successfully added ADUs or expanded, it proves the city is receptive to growth.

Q: Should I recommend a “reno loan” to my clients? A: Yes. In 2026, products like the FHA 203(k) or Fannie Mae HomeStyle are more popular than ever because they allow buyers to wrap the construction costs into their mortgage at a lower rate than a personal loan. Providing a Kukun cost estimate helps the lender approve these loans faster.

Q: Does curb appeal really impact the PICO™ score? A: Absolutely. The PICO™ score takes into account the “curb appeal” and neighborhood parity. If every house on the street has a manicured lawn and your listing has a dirt patch, it drags the score down. A $5,000 landscape “refresh” is often the fastest way to jump 50 points.

Q: How accurate are the renovation estimates in the PrepToSell report? A: They are hyper-localized. Unlike national averages found on general home sites, Kukun uses 2026 labor and material costs specific to your zip code, meaning the “sticker shock” is eliminated before the buyer even talks to a contractor.

Last Thoughts for the Pro Agent

Selling a house that needs work isn’t about finding a buyer who likes projects; it’s about finding a buyer who likes money. By providing a clear, data-driven roadmap of the renovation journey, you aren’t just an agent; you’re a consultant helping them build wealth.

The next time you’re at a listing appointment for a dated property, don’t just talk about “potential.” Prove it with a PICO™ score.

The Realtor’s Secret Weapon: Using “Potential Value” to Close Fixer-Upper Deals was last modified: January 26th, 2026 by Billy Guteng

Written by Billy Guteng. January 27, 2026

Billy is a content writer for Kukun. He was born in France, and has lived in multiple cities around the world ever since. He loves art, design and architecture as well as construction and real estate.