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

This is very good reading for prospective home sellers.

Thanks for sharing your experience.

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

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!

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!

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.

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.

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 

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.

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) 

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

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? 

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

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!

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--

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

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

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

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

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.

There are several new limited service companies that have just come out.

They list the property in the MLS, the seller shows it. If we can not show the benefit we bring that surpasses that kind of service, we probably are in the wrong business.

Wow Sally K. & David L. Hanson you got the crowd fired up with this post.

Great stuff!!!