Real estate agents often overlook cost segregation until after a deal is closed, but Brian Kiczula, founder of engineering-based cost segregation firm CostSegRx, argues that this timing works against everyone involved. According to Kiczula, agents who bring in a cost segregation specialist before an offer is accepted gain the most value for their clients and themselves.
Investors increasingly want to know about accelerated depreciation benefits before committing to a purchase. By engaging a specialist during due diligence, agents can provide clients with estimated benefits on a property under contract. This is particularly useful for those planning significant renovations or buildouts, as they can understand how capital improvements affect depreciation. The conversation often extends into design choices, such as flooring, electrical upgrades, and lighting, which can be optimized for tax advantages. An agent who facilitates this guidance adds value beyond property selection.
Kiczula advises against pushing cost segregation on uninterested clients. Instead, he recommends treating a cost segregation specialist like any other trusted provider—title company, insurer, or home inspector—by including them on a short list of referrals. Some real estate groups formalize this by maintaining public lists of preferred vendors, which Kiczula suggests as a model for other agents. This approach positions the agent as a resource, not a salesperson, while ensuring clients are aware of the option.
CostSegRx collaborates with real estate investment groups and professional networks, sometimes linking directly to its site so members can request an estimate before making an offer. For example, a developer building self-storage properties has a direct link on their website for this purpose. The referral relationship yields long-term benefits: investors who gain real value from a study on one property often return for future acquisitions. Agents can request estimates on behalf of clients through the firm's free estimate page before closing.
Introducing this resource also shifts client perception. Kiczula observes that agents who provide such insights are viewed more as long-term advisors than transaction facilitators, which translates into repeat business. For agents working with investors who plan to hold and lease property, adding a cost segregation specialist to their trusted provider list costs nothing and adds substantial value to client relationships that extend well past closing.
This proactive approach ensures investors maximize tax benefits and agents strengthen their advisory role, ultimately benefiting both parties in the competitive real estate market.
