HOMEstretch grows prep-to-sell business into Indianapolis
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A growing prep-to-sell home renovation business has expanded to Indianapolis.
Cincinnati-based HOMEstretch organizes and contracts home improvement services to both ease the burden of moving for homeowners and improve their property’s value. Indianapolis is the latest to be added to its roster, as the founders hope their business grows synonymous with the home preparation industry.
“The biggest stress in people’s lives is when they’re trying to sell their home,” co-founder Derek Shewman said. “We wanted to create a seamless one-stop shop that alleviated a lot of the pain points with people trying to prepare their home to sell and also worked with realtors.”
Indianapolis serves as the second market the company has grown into since founders Shewman and Nick Lobert started it in 2019 in Cincinnati. HOMEstretch later launched in Columbus, Ohio, in 2021.
Shewman and Lobert, who were childhood friends, reconnected when they worked at Cincinnati-based Everything But The House, where they learned about the industry and customer service. That was also were they discovered the market void.
Last year, the company serviced 485 homeowners, with an average of 40 jobs a month, and grew 58%.
“The overall goal is to be the national leader in the home preparation market space,” Shewman said. “which we think still a big need and a service that people from Ohio to Indiana to California to Florida all need because they all face the same problems.”
“Time is money”
HOMEstretch manages identifying and booking contractors under tight timelines to complete cosmetic and handyman work. Services include junk removal, painting, flooring and landscaping.
Traditionally, he said homeowners would have to sort through quotes from dozens of companies, organize conflicting schedules, and subsequently, become more burdened in an already stressful process. Instead, the company handles all of that and acts as a single point of contact for homeowners.
“If there’s wallpaper in blue and green carpet, the client’s not willing to pay full asking price,” Lobert said. “But if the home is nice and neutral and clean, and you know, airy, then they’re willing to pay full asking price.”
Since people often live in their houses for decades at a time, Shewman said, so those homes need to be updated to today’s buyers’ taste, like replacing the wallpaper and pulling up the carpet. Buyers now also want something more move-in ready, he said.
“We built this thing for speed,” Shewman said. “We understand that our real estate partners need speed and our clients also.”
They give people a quote on their home within 24 hours of their consultation. If the project moves forward, he said they start the job in the next two or three days.
Partnerships are also established with contractors and realtors to make the process smoother for all involved. Lobert said realtors know who to call when they have a house that needs some TLC and wants someone else to take it on.
“My pitch is let me manage the project for you,” he said. “And once they use us, they’re like, ‘Oh, alright, this makes sense. This makes my life easier.'”
Lobert calls it a win-win situation since homeowners are happy with their increased property value, realtors can get polished listings on the market, and of course, HOMEstretch sees more business.
New to Indianapolis
After launching Columbus and welcoming new franchise partners, the company turned to Indianapolis. It’s a new market Shewman and Lobert said just makes sense. Shewman said it’s “another great Midwestern city,” and he has a connection to the area since his in-laws live there.
“That was always kind of the next target for us,” Shewman said of the capital city.
The new office in Castleton opened for business on July 24 and is ready to take new jobs. Already, Shewman said the company has had multiple consultations after a week. So far, they have hired a general manager and director of business development.
Shewman talks about how HOMEstretch fills a gap in the housing market and why they decided to expand to Indianapolis.
At this point, Shewmans said they care more about brand development and employing the right people than the number of jobs booked. As the business takes root in Indiana, he said they will grow their staff as needed and expects to build a staff of around 10. The headquarters in Cincinnati has 15 employees while Columbus, Ohio, location has three.
Fast but strategic growth
The company got off the ground right when the pandemic touched down. Shewman said they took that time to ensure the company has the potential to be a countrywide endeavor. They focused on cementing their values, processes and procedures not only as a good basis of a newborn company, he said, but so it could be replicated. Shewman nods to the success of now three markets to that strategy.
“Those early months allowed us to kind of really focus in on figuring out, “How are we ever going to get to the point where we can do 50 jobs in a month?” which at the time of starting seemed like a gargantuan task,” he said. “But now, we can do that like a machine.”
The company brought in over $3 million of revenue last year. As a way to grow into a national name, Shewman said the company also started allowing people to start franchises under the company name and follow their playbook. They will continue to expand market-wise as they have done with Indianapolis.
They want to grow their brand with stability at the forefront, he said, instead of prioritizing speed. In the next few years, Shewman said they hope to open five to eight corporate locations with franchises all over the country.
Despite a looming but not confirmed economic depression and the housing market low on inventory, Lobert said they are booking 30 to 50 jobs a month. As the market picks up speed and more houses are put up for sale, he said that will breed more competition and subsequently more customers and a need for their business.
“It’s more important for us to grow sustainably and just keep understanding that when we do expand,” Shewman said. “We want to make sure we hire the right people and the standards for exactly the same continue to kind of build a brand that people trust.”