Archive for April, 2013

The Concept of Value in Real Estate Services

Monday, April 1st, 2013

What is value as it relates to Real Estate Services? Is value seen only as the fee that is paid? Recent studies have shown that people will pay for what they see as value – so how else is value provided in Real Estate? We have developed a Client Services Value Contract that itemizes specific full services that you should receive from your Real Estate Agent, the person working as a professional and who is legally representing your interests.

The Client Services Value Contract can be used by anyone as a guide to ‘check out’ and verify the value that each Realtor offers. We think it is fair to compare so that you know what you are getting for the fee that you pay as a listing client, or the fee that they receive when working with buyer clients. If simply paying less is important to you, there is a trade off for the number of services you can reasonably expect since discount models make the most business sense if they work on high client volume. If you value return over price,  and prefer to work with someone who offers more services and who has a limited client load with fees based on a non-discount basis, then you will also want to find out exactly which services they offer to you. Every Realtor offers something different.

Examples the Real Estate Client Value Contract items include:

  • Specific Certifications Relevant to your Real Estate Transaction – does the Realtor have and maintain current certifications that help you or are of value to you – for example our team has two – Cert Home Staging/Redesign and Cert Acreage and Bare Land Real Estate.
  • Availability – how and when can you reach your Real Estate Agent – do they answer the phone themselves, do they work every day of the week, do they exclusively text, how do you prefer to communicate, do they have someone available in their absence, can other Realtors get a hold of them to discuss the property or ask questions. Some agents are so busy that we have had their clients contact us because they did not want to text their agent and could not reach them by phone.
  • Level of Personal Service – it is simple math to determine that the more clients you take on, the fewer personal services you can provide. If your preference is personal service then you may want to work with a Real Estate Agent who does not work with a large current client load and/or discount volume-based services.
  • Ongoing Education – do they invest their money and attend education seminars and programs to stay up to date, how often, what courses, be sure to ask them. Current professional education increases the competency of your agent and demonstrates the level at which they manage their business.
  • Quality of Business Systems – have they invested their money into their business, what is the quality of their website (view several and compare) and other business systems such as home office equipment, laptops, IPad, Smartphone, software, etc.
  • Social Media – are they savvy to current Social Media trends and use them to your advantage.
  • Full Time or Part Time – are they dedicated to their business and invest their time fully toward providing their clients service.
  • Teaching You About Real Estate – does the agent teach you about the real estate market, explain fully why they feel a property value is what they say, do they provide clear explanation and evidence of their analysis (comparisons), do they take time to develop a full report for you, do they provide market updates specific to your needs. Do you feel informed.
  • Contract Law – some agents come to this industry with a professional background that included contract law – do they have a business degree (BComm, MBA) that extends the basic Contract Law understanding as required for Real Estate licensing to an advanced education and work-related background in this area.

Value can be seen in two distinct ways:  How much I pay (cost)…. or…. How much I receive (return).

Be careful not to make assumptions based on simple discount models, do your research as a consumer, the value of services provided by full-time full-fee Realtors can far outweigh the difference.

John and I offer value by providing our clients with more, including exclusive services that statistically offer a better chance of a home selling more quickly and for 3-5% more overall, by holding and maintaining valuable certifications making us true experts in these areas working on their behalf, by holding high levels of education and maintaining a current industry knowledge through attending several courses yearly, and the list goes on.

Be a savvy consumer, know what level of professional services you’re getting as a buyer or seller. Do not assume that every Realtor offers the same range of services, they do not. Whether you are choosing full service fee or discount, do your homework first, it will make a difference for you in the end. After all, the Realtor you select will work closely with you representing your interests in your property transactions, which for many is the largest asset you will own.

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Central Alberta REALTORS® Association. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
MLS® MLS REALTOR® Realtor