Hawaii Randy's Real Estate Opinions: Premium Service Listings – Would You Pay More?

Make sure that you get paid for those services even if the house doesn't sell.  Upfront would be a good idea.

Randy i could have sworn I read about this recently...did you have another post which discussed premium service listings recently??

Judi - Good advice.  I am still working on the business plan and the details.  I have to assemble the vendors and pricing.

Kaushik - I mentioned it in a previous post, but didn't give any details.

Randy, even during the Great Depression, some people still bought Duesenbergs.  Good post.

Judi, good advice, to get paid up front for items that will cost you whether the home sells or not. 

Hi  Randy   !

Thanks for the post, it is always nice to have good info to refer to. Thank you and keep posting.

 

Nalliah Thayabharan

Expert Building Inspections Ltd

Randy

For purposes of this comment, I'm writing from the perspective of a consumer.  Your talking points are absolutely correct in my opinion.  I would pay more for premium listing services.  It's as simple as that.  You're right to emphasize the fact that many agents aren't willing or able to go to the next level of service described by you.  I think that you're right on target.  Consumers want stellar real estate services.  I've been around this industry for a very long time and can't comprehend the introduction of discounting to something as important as homeownership.  It doesn't make sense. 

Great thought.  Kind of like offering supersized staging services.  I think there is a word just waiting to be coined.  I just haven't thought of it yet.

Randy,

Nice post. Most of the components listed (not all) usually get addressed at some point in the sales process. So, why not have the premium service take care of them in the beginning? Some may but most won't because they are trying to save money. If they won't pay a reasonable commission, why go for premium services? Thanks

Randy, there are going to be plenty of clients who would be thrilled to have more of the stress of moving taken off their shoulders.  It's difficult and people are busy.  We want an easy fix. 

Also, there are people who enjoy using a premium service because of the status element -- a friend of mine used to own a cleaning service in a wealthy area.  He struggled until he doubled his fees, then he couldn't keep up with his business!  Sometimes people will assume a higher cost is better, no matter what it is. 

Randy,

Sounds like a good idea! I agree with Judi get paid upfront for the"premium."

Randy~

Very attractive way to appraoch the  subject of quality of service with clients...The Question: Would you rather have limited,basic or premium service??..The Answer: "Tell us what you mean..."...Another opportunity for the general public to become aware of what it means to be a real estate professional ...

I'm going to talk about this with our crew at our staff meeting this week. THX!

Randy I think there is definitely a market for "premium service listings". I actually offer quite a few of these services already. As long as they take my advice and price according to my plan I WILL pay for cleanings, lawn service, minor repairs, utility service etc. I currently have several listings right now where I am paying these items. All are absentee owners and just are not able to spend anymore money on the house. They will reimburse me at closing. I know the houses will sell because they are priced properly and by providing these services they are in good clean showing condition.  It's a convenience I offer absentee sellers and in ensures that I get these things done promptly. I dont have time to wait 2 weeks for the seller to get around to having electric cut on or the grass mowed. I have standing accounts at the utility companies and with a fax the service will be connected. Same with lawns, cleans and repairs. They all just bill me and I collect at closing.

I can get behind this idea-my wheels are turning!

I do the same thing...do what I can...collect in the end....and sometimes don't get the appreciation I "expect"  but then again....some are givers,, takers and appreciaters woohoo! 

I think this would work well for very high end clients.

Brian - Great point!  Also many millionaires were made during the great depression.

Nalliah - Thank you

Ed - There is a market for both.  I have spent a lot of time and money and effort to build my skills.  If I was only going to compete on price, I could have saved all that.

Tim - These are all things an owner has to pay for anyway.  Why not just offer it up front and get more for their homes?

Gary - If we have to compete with tons of agents, what will set us apart?

Sarah - Good points.  I have a philosophy.  If I don't value my services the clients won't.

Suzanne - I haven't worked out the entire details yet, but compensation will is definitely at the top of the list of issues to be worked out.

janeAnne - I am interviewing a possible assistant today.  My plan is to have someone in charge of this program including the marketing.

Bryant - All of us are handling many of these for our clients already.  I think to put it together as a package to prep the home, sell the home and handle to bumps pain free is something I can sell.

Leigh - I have heard of this before through CRS classes.  I heard it again and decided then and there I will be moving towards it.

Sally - We all do.  I am suggesting we offer it as a service they buy.

John - I think so, I also can see several other types of clients it would work for.

I like it!  I also recognize that forms addressing the services must be considered.  Anytime you add a service that could financially impact a client you better have your CYA forms in place.  The concept is brilliant and certainly not for everyone.  I am working on a 5.5 million dollar listing...they would consider it in a heart beat!  Nice post.

Gary - There will be a lot of ground work to do this correctly.  I am just starting to put the vendors together and building the plan.  It may be a little while before I am ready to roll it out.

Randy.... great stuff. From a concept standpoint, if it makes sense that some would gravitate toward discount, it holds to reason that others would gravitate to premium.

I think you get what you pay for.  in a very competive market someone who does more then puts a sign in the yard and enters a property into the mls will most likely get the home sold and get the home sold for the most money. 

Randy:

There is definitely a market for premium services - people are already willing to pay for these things regularly (landscaping, decorating, house cleaning, car detailing, the list goes on an on). Why not as part of the sales process - high end homeowners, folks who are relocating, second/third home owners, and more. As others have said the services should not be payable conditioned upon closing. Keep us posted on your progress.

Jeff

Or you could look at this way. What type of gas do you put in your vehicle? When I owned a Chevette at the age of 16, I used regular unleaded. When I eventually bought a Subaru with a turbo engine, I put premium gas in it. Sure, premium gas costs more, but it keeps my car running and in good condition. Ask the consumer, do you want your home to run on unleaded gas, which might cause your car to get clogged, or would you prefer premium so that the sale of your home purrs like a kitten?

I have a commission menu I pull out when sellers start talking discount or lower commission.

"Absolutely Mr. Seller, here's my commission menu:

for X% you get the regular package

for X- you don't get this and this

for X + you get the regular package plus this, this, and this.

Which one would best suit your needs?"

Jeff- I think that is true of any business.

Marcus - And take away some of the stress from the clients in the process.

Mott - I pay more if I am getting value.

Jeff - I will report back as I develop the program

Jennifer - Good analogy.  I like the restaurant analogy.  You can buy a steak fro $20 or $100 up the street.  The place that sells $100 steaks has a waiting list.

Jim - I like that.  Let the customer decide.  It also takes away some of the haggling when you offer a choice.

Interesting... Thanks for the post 

Wayne & Lynda - Thank you

There are people for every business model and ones that don't even exist. Great post!

Randy,  I love this post.  I have been considering raising my fees.  Now I know what to call it!   I just made a post today about a commission issue.

Thanks for another great post my friend.  I hope all is well in Aloha land.  BTW...did you get a haircut?  Looks good :-)

Randy - great information - I have to be careful what I type - I am feeling a little evil for some reason :o)

Hi Randy,

This is an interesting idea.  If I had the money, I would be willing to pay for a service like this.  I have no doubt the people who do have the money will pay for it. 

Sounds like you are doing the research to make sure you do this right, covering liability, choosing the right partners, etc.

I look forward to the roll out. 

 

Christy - Thank you

Carol - I will read your post.

George - Same hairstyle less me.

Thesa - best not to write much when in that kind of mood.  :)

Doreen - I am moving forward and hope to have the program ready in the next month or so.

Randy - love this idea and thanks for throwing the concept out there to noodle on. Looking forward to hearing more.

Cyndee - I will post how things are going as I begin to develop the program.