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Premium Service Listings – Would You Pay More?

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Real Estate Agent with eXp Realty 2021016812

Money HouseHave heard of Full Service and Limited Service Listings.  Have you heard of Premium Service Listings?

In our industry there seems to be a lot of companies and agents focused on dropping prices and lowering services.  Limited listings, flat fees and for sale by owner listings are among some of the business models that are out there.

 

I believe it is reality for two basic reasons for these business models:

  1. There is a segment of the market who wants it.
  2. There are also a lot of agents who are not qualified to sell real estate at the highest level and probably never will be.  If you can not compete on service you will either leave the industry or find a way to undercut the guy down the street.

There is another segment of the market that is looking in the opposite direction.  They want even more service than what is traditionally offered by full service agents.  They are even willing to pay more for the convenience and removal of stress.  There are many things a home needs to get it ready for sale and many issues to address during the escrow process.  Some clients would prefer that they are done for them.  Would you pay more for additional services?  Don't answer that yet.

Let's list a few of the services that may be included in a Premium Service Listing:

  • Professional Home staging
  • Professional Home inspection
  • Carpet cleaning
  • Painting
  • Handyman repairs
  • Home warranty
  • Professional home cleaning before showing and before final walk-thru
  • Landscaping
  • Storage
  • Moving

Kitchen  Damaged Wall

Not every client would be willing to pay more, but there is definitely a market for this type of service.  I have had many clients who were relocating and just wanted all the stressful stuff done for them.  I have also had senior citizens or those who were physically or emotionally limited and just wanted someone to take care of it.

I did not list every possible premium service.  I am still building my business plan for Premium Listings.  Just as there is a niche' for limited services there is also a niche' for Premium Services. 

Feel free to add your opinion or items you would add to the list of Premium Services.

Other similar blog posts:

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Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.com *  Oahu (Honolulu County) Property Search  *  Hawaii Military Relocations

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Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
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.
May 22, 2007 05:41 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645
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.
May 22, 2007 05:43 AM
Jeff Turner
RealSatisfied - Santa Clarita, CA
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.
May 22, 2007 06:44 AM
Anonymous
marcus valdez
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. 
May 22, 2007 06:47 AM
#23
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

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

May 22, 2007 07:22 AM
Jennifer Kirby
Kirby Fine Homes - Minneapolis, MN
The Luxury Agent
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?
May 22, 2007 08:00 AM
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

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?"

May 22, 2007 08:12 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

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.

May 22, 2007 08:22 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

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.

May 22, 2007 08:26 AM
Wayne and Lynda Gomillion
Real Living Hagan Realtors | Pinehurst ~ Southern Pines, NC - Pinehurst, NC
Interesting... Thanks for the post 
May 22, 2007 09:51 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Wayne & Lynda - Thank you

May 22, 2007 12:02 PM
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
There are people for every business model and ones that don't even exist. Great post!
May 22, 2007 12:33 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
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.
May 22, 2007 12:39 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Thanks for another great post my friend.  I hope all is well in Aloha land.  BTW...did you get a haircut?  Looks good :-)
May 22, 2007 03:35 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
Randy - great information - I have to be careful what I type - I am feeling a little evil for some reason :o)
May 22, 2007 05:02 PM
Doreen McPherson
Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ
Phoenix Arizona Real Estate ~

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. 

 

May 22, 2007 07:36 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Christy - Thank you

Carol - I will read your post.

May 22, 2007 08:17 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

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.

May 22, 2007 08:22 PM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Randy - love this idea and thanks for throwing the concept out there to noodle on. Looking forward to hearing more.
May 26, 2007 05:18 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645
Cyndee - I will post how things are going as I begin to develop the program.
May 26, 2007 05:21 PM
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