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Developing a Menu of Services - Part 2

By Saul Klein via Real Town

bluehammer

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.

* THIS REPORT IS AN OPINION THAT MAY BE INACCURATE AND IS PROVIDED SOLELY AS AN INFORMATIONAL TOOL NOT DESIGNED TO PROVIDE DEFINITIVE ANSWERS. ALL ELEMENTS ARE OFFERED "AS IS" AND BLUEBOOK EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES, REPRESENTATIONS, AND GUARANTEES OF ANY NATURE, EXPRESS, IMPLIED OR OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABLITILY, NONINFRINGEMENT, TITLE, QUIET ENJOYMENT, ACCURACY, OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL BLUEBOOK (OR THEIR SUPPLIERS) BE LIABLE FOR ANY GENERAL, DIRECT, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, OR ANY DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION, THOSE RESULTING FROM USE OF THE PRODUCT, INCLUDING : (1) RELIANCE ON THE MATERIALS PRESENTED, (2) COSTS OF REPLACEMENT GOODS, (3) LOSS OF USE, DATA OR PROFITS, (4) DELAYS OR BUSINESS INTERRUPTIONS, (5) AND ANY THEORY OF LIABILITY, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF INFORMATION) WHETHER OR NOT BLUEBOOK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Want to Connect with Homeowners and Grow Your Real Estate Business? Get started with bluehammer for Real Estate Agents today!

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