Developing a Menu of Services - Part 2

By Saul Klein via Real Town

How will you determine what services you will offer to the new Internet empowered the consumer and how much will you charge for those services? That is probably yet to be determined, but it all starts with defining the services and the value the "agent" brings to the future transaction.

Phase 1: Educate

What valuable services do real estate professionals provide the consumer of real estate services in this phase of the Cycle? Here is a start:

Buyers:

Teach them about the home buying process:

How to select an agent-agency and representation
Financing alternatives
Understanding the contract
Earnest money deposit
Contingencies and how they work
Liquidated damages provisions and how they work
Arbitration and mediation provisions
Inspection provisions
Disclosure requirements
Neighborhood information
How value is determined

Sellers:

How to select an agent-agency and representation
Current market status and pricing
How to prepare the house for marketing
Disclosure requirements
Explanation of listing contract
Explanation of purchase agreement

The intent is to create a list of services (and value) you provide whether you charge under the current "one size fits all" method or decide to price your services individually.

Going through an exercise such as this will help you, the agent, see the value you bring to the transaction beyond placing a property in the MLS, and it will help you establish a value for your services.

The next phase is to Locate if you are working with a buyer and Market if you are working with a seller.

Phase 2: Locate

Real estate professionals:

Develop a client’s needs profile
Screen inventory for the buyer, filter those who do not match buyers profile
Provide transportation to properties offered for sale
Provide access to properties (lock box)/arrange for showings
Provide information about each specific property shown (MLS) Find properties offered other than through the MLS (pocket listings/New Homes/FSBOs)
Provide information about general areas
Geological
Community
Tax and local fees
Transportation
Show buyers how to search on the Internet

Market

Advertise
Standard advertising
Classified Ads
Display Ads
Local advertising
Internet Advertising
Realtor.com
80 major websites
Newspaper Website
MLS Website
Broker Website
Franchise Website
Personal Web Site
AutoResponders of "Hot Properties"
Prepare property for showing
Broker open house
Open houses
Promote through e-mail distribution lists you have created

3. NEGOTIATE

What are some of the things agents perform in this phase?

You represent the buyer or seller as their Agent (a case can be made for lots of value here) - negotiate in their best interest
Assist in determining the contract price
Prepare the written offer
Present offer (lots of value in the first presentation)
Write counter offer
Deliver counter offers
Work with counter offers - negotiate
Continue with the disclosure process
Handle earnest money deposits

4. ADMINISTRATE

Open Escrow
Deliver escrow instructions
Explain the escrow process and instructions
Review preliminary title report, explain to parties if required
Coordinate buyer and lender
Communicate with applicable parties
Pest Control
Appraiser
Vendors
Attorney
Negotiate and communicate potential amendments during the closing process
Review closing statement

5. Communicate

The last Phase of the Real Estate Selling Cycle comes after the closing; it is the continuation of the relationship and communication you created during the first 4 phases. Remember, you want to be your clients "real estate professional for life."

Continue to be a "value-added" professional by providing information after the sale. In my financial planning and securities business, I have what is referred to as a "book of business." This client base brings me added revenue each year and has a value (based on a revenue stream that I could sell should I decide not to be in that business any longer). I consider my company’s property management revenue stream and the clients that provide it a "book of business" as well...Build your "book of business."

Communicate with the buyer or seller at least four times per year. Bring them up to date on what is going on in the real estate world and the tax and financial world as it relates to real estate.

Start to build your e-mail address book and begin to do an electronic newsletter. Respond to e-mail promptly.

Ask for referrals at every opportunity

Be there when your clients have a real estate question

Looking to connect with homeowners, increase your engagement and grow your real estate business? Learn how with bluehammer for Real Estate Agents.

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