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March 5, 2018

Developing a Real Estate Menu of Services - Part 1

Over the next five years, new pricing models will be available to the consumers of real estate services. What is the business model of your "real estate practice of the future" and how will technology and the Internet shape that model? Whatever that model is, you must stand ready to substantiate it with the value you bring to the table.

To begin to answer these questions, you must create a detailed list of your current services, a "menu" of the services you provide to consumers.

That list should be divided into what I refer to as the 5 phases of the real estate transaction. The 5 phases are:

1) Educate
2) Locate/Market
3) Negotiate
4) Administrate
5) Communicate

To build your "Menu of Services", list each of the above on a separate sheet of paper. Now go through your last six transactions where you represented the seller and list everything you can think of that you did in the transaction.

Leave nothing out, no matter how small or insignificant you may think it is. From putting the sign and lockbox on the property to advertising to having a carpet shampooed at the last minute to satisfy a buyer whose expectations were that the property would be in better condition than the condition it was left in by the seller :-)

Do the same for the last six transactions in which you represented the buyer.

You now have a "Menu of Services" for both buyers and sellers.

Determining the value of each of these tasks and services will depend on the time, skill and training level required to accomplish each. A task that requires a real estate license may be of more value than one that doesn't require a license.

Most real estate companies today offer their "Menu of Services" bundled in a "one size fits all" pricing model.

The future holds more choice for the consumer.

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