Limited Service vs Full Service ...Sellers..What ARE you limiting ?

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

  We well know that this topic could be a "worm can" with this forum....and that's OK....people choose to practice differently...as full service or limited service agents....each to their own.   From our perspective...for "money to come out" of a transaction, it has to go IN....and time, professional Can of wormsphotography, pre- marketing, continuous marketing, marketing monitors all take time....and cost money. 
    Regardless of market conditions...that is A Buyers or Sellers Market...what Seller can really afford to have less exposure for their listing...fewer buyers aware of what their home has to offer...less opportunity for the "highest and best" price paid for the property ?  Why would anyone choose to limit their financial return on a real estate investment ? 

     In our experience..."Limited Service"  can mean not only less marketing to the potential buyer pool bno marketingut less response to agents/buyers who have expressed an interest in the property.  Multiple phone calls, emails and texts go unanswered....and  sometmes that can well mean the loss of a buyer to the Sellers...or more likely if that is the practice o the brokerage...many potential buyers are lost. 

        There is no "free lunch"...you don't get the same thng for less money ....the same result...the same financial return....Is one of your largest assets something that Sellers should risk with less piggyexperience, less attention...less of everything in an effort to "save money" ?  If you get less...it takes longer to sell and you have spent more on taxes, mortgage payments etc.  what have you really saved ?  It could be that you saved uyourself Mr./Ms Seller from having to decide among more than one offer...from being the "peace maker" in a bidding war....and gettiing less of a piece of the profit you might have earned. homework

   Sellers AND Agents...Do your homework ! We did a study in our market of how our sales compared with major limited service brokerages...the results were shocking at the double digit percentages in increased return to the Sellers we represented as full service agents versus limited service brokerages....It's a study worth doing and updated every quarter as a part of a listing presentation...Sellers have to just say WOW and full service agents with professional winning sales records will be rewarded with more listings.full service

       If you want your listing to be rewarded with the "highest and best" return the market has to offer in southeastern  Wisconsin...call 414 525 0563...7 days a week and Sally K. and David L. Hanson will be honored to be at your service for all things real estate.

   

    

   

   

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,825,992
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Good morning, Sally and David - another note-worthy post. Very good reading! 

Apr 13, 2018 08:12 AM #5
Rainmaker
4,498,203
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is very good reading for prospective home sellers.

Thanks for sharing your experience.

Apr 13, 2018 08:29 AM #6
Rainmaker
2,517,603
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sally and David,  Excellent blog and should have some agents thinking of what they are doing.

 

Apr 13, 2018 09:03 AM #7
Rainmaker
2,778,407
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

As you know, you certainly do not get the same thing for less money Sally and David. Limited Service means...Limited time, money and marketing!

Apr 13, 2018 09:08 AM #8
Rainmaker
1,751,169
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

I have one tomorrow where a lender wants me to go to a house to verify that a gas fireplace, that I had previously found did not work, was in fact fixed and is currently operational.  That's a limited inspection!

Apr 13, 2018 10:40 AM #9
Rainmaker
1,472,565
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Sally and David - the point must always be made to those unaware, but, luckily it is a easy one to make as you have just done.

Apr 13, 2018 11:37 AM #10
Rainmaker
556,909
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Sally & David:  I appreciate the effort to state your conclusions, but I don't really understand the study you performed.  If I may, which "major limited service brokerages" did you use for the study and how did you qualify them as limited service?    Did you infer limited service from a discount offering, or did you make this determination some other way?   

Also, can you explain what you mean by the "shocking double digit percentages in increased returns"?     (As oppose to a single digit return by limited service brokerages?  Although, I don't understand the basis to ascertain an "increased return." )

It all sounds good, but it might be more credible to understand the mechanics of your study, what a "return" means in this context, and the specific differences between your marketing plan and the plan of these "major limited service brokerages."

As a suggestion, maybe you can publish your study to support these dramatic conclusions.  It would be helpful to rainers and consumers, alike.

Apr 13, 2018 01:53 PM #11
Ambassador
2,640,839
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Working with full service brokers is so much easier for me. I know both sides should do half the work. I have seen limited service providers, who take $450 up front for the listing, mls, and sign (for a 6 month  listing) and proclaim all other contact, appts and negotiation's are through the owner. ($99 for mls keybox and only 1 photo for base price.)

I took the final part out of our mls as an example Sally K. & David L. Hanson 

Apr 13, 2018 04:51 PM #12
Rainer
398,036
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Sally & David,

It could work on occasion, but you can not always count on being lucky. You can also get unlucky with regular agents, but it is less common.

Apr 13, 2018 07:30 PM #13
Rainmaker
560,233
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

How about this food for thought?  Full service agent has 24 hours in a day.  So is the full service agent with 5 listings going to spend more time selling my home...or will it be the full service agent with 20 or 30 listings? Full service means more than just the full listing commission...doesn't it?  (asking for a friend) 

Apr 13, 2018 08:48 PM #14
Ambassador
3,582,781
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We are seeing more and more of these discounters. Sellers think they can do much of the work themselves.

Apr 13, 2018 08:54 PM #15
Rainer
432,684
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Consumers primarily make their decisions or choices emotionally and their perspective of value. In real estate, some prefer to DIY, some prefer limited service brokers or agents while most use full-service professionals. 

But, why even consider representing consumers who cannot or will not recognize the value of a professionals knowledge, skills, performance and experience?

So, after discovering a consumer is opposed to the value of service and performance, would it be inappropriate in your opinion to cease engagement or better yet to convince him about the values he can't comprehend or unwilling to accept? 

BTW, depending on the type of transaction and the consumer's knowledge and experience, it just might be suitable to employ a limited agent, don't you agree? 

Apr 14, 2018 01:30 AM #16
Rainmaker
2,375,358
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

Well you and David sure started a variety of different opinions with this one.  In my area, there are a couple of those limited agencies.  Most people avoid them

Apr 14, 2018 01:51 AM #17
Rainmaker
1,370,072
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

I would not agree that you always get what you pay for, but would say that if you haven't paid for it, you sure as heck aren't going to get it!

Apr 14, 2018 11:22 AM #18
Rainmaker
431,313
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Sometimes, 'limited service' works.  However I'm way beyond getting upset about those pp who think agents make too much money for very little work. You get what you pay for--

Apr 14, 2018 01:02 PM #19
Ambassador
3,228,795
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Sally and David- interesting post and I'm also loving the comments!!  

Apr 14, 2018 06:48 PM #20
Rainmaker
4,145,207
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for providing this valuable information.  Unwary sellers should understand what they are really getting.

Apr 16, 2018 05:29 AM #21
Ambassador
3,521,306
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

There are a range of different business models out there, which are not necessarily all effective, and a range of sellers who will find them appealing for different reasons, much of that being financial.

Jeff

Apr 16, 2018 07:25 AM #22
Rainmaker
1,441,911
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Great post - there are many ways of doing business but some are better for sellers and buyers than others - but when all they see is the dollar sign they don't think about what they are foregoing with the smaller fee

Apr 16, 2018 08:22 AM #23
Rainmaker
1,959,127
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I find I have to use actual examples like you do to persuade sellers when they are undecided between discount and full service. Discount agents tell sellers they will do the same thing, and no, they do not. So, I show them.

I.E. offer comes in at XYZ. Here is what I do with that kind of offer, blah, blah, blah, what I suggest and get for them, how I navigate the inspections, etc.

Vs. here is what discount agent says: "take it."

That generally nails it.

 

Apr 16, 2018 08:34 AM #24
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Rainmaker
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WI Realtors - Luxury - Divorce - Short Sale
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