It’s no secret that the real estate market in the United States is red hot. Brokers competing to win listings are always looking for ways to differentiate themselves from the competition.
Enter house concierge services.
Home concierge started as a way to lend homeowners money for updates before they were sold. It has evolved to mean much more. Now companies offer a full-service concierge service to provide home renovation estimates, manage the capital, manage contractors, and more.
In other words, a home concierge provides the infrastructure to create a turnkey solution. This increases potential returns for homeowners and appeals to the huge millennial buyers market.
Many real estate companies have already recognized the need for a home concierge. While major companies like Compass have created their own service, other brokers work with outside companies.
We had the pleasure of sitting down with Revive Concierge co-founder Dalip Jaggi to discuss the ins and outs of the in-house concierge. As a tech entrepreneur and former CTO of Rich Uncles, Jaggi is no stranger to the world of real estate innovation.
This is what we have learned.
Give customers a competitive edge
Historically, it is the brokers that evolve that are best equipped to outlast the others. House concierge is a way of proposing a new solution to an already existing problem.
It may seem like selling as is, with some staging or paint tweaks, is enough in today’s market. YOU could sell as is and still get bidding war. Still, there are situations where renovation is the best option for customers.
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Offer personalized options
A personalized plan goes a long way. Jaggi notes that it’s about giving the customer more choices based on their specific needs.
“Having a renovation plan as an option gives real estate agents another tool in their toolkit to work with,” he says. “By partnering with a home concierge service, they can combine the traditional CMA presentation with a renovation plan as a possible option. Based on forecasts, the homeowner can choose the best option for his situation.”
To be clear: renovation does not apply in every situation. When a house needs work, it offers homeowners a different way out than selling as is. This has long been a conundrum that many homeowners have to deal with. When a real estate agent comes to the table with solutions, it propels them from a person who sells houses to a real problem solver.
Position yourself as an industry expert
Having home concierge as an option positions real estate agents as industry experts. It shows innovation and creativity when most people don’t go beyond that. More importantly, a well-executed renovation produces results.
“Brokers are judged on results. A successful turnkey refurbishment will lead to higher sales, increasing the potential for future sales in the area,” says Jaggi. “Nearby homeowners will consider this broker an expert when they see these results.”
Building a reputation as someone who can deliver is great for repeat business and attracting new customers. As an early adopter of home concierge services, you have a competitive advantage.
How to discuss a home concierge with your clients?
Brokers have always been a source of information and guidance for buyers and sellers. The best way to introduce a home concierge is to educate them on the subject rather than turn it into a sales pitch.
“Frame it as a tool in your toolkit,” suggests Jaggi. “By offering it as an option and explaining your vision for a renovation plan, you can make an informed decision together.”
To steer your conversation in the right direction, you want to emphasize certain areas for improvement in your home. Educate your customers about the meaning of ready-made and buyer trends. Another way to get into this topic is to explain how the process works from start to finish.
What can you expect from home concierge services
The real value that home concierge services provide comes in taking the guesswork out of renovations. Brokers work with companies with existing systems and networks to ensure the process runs smoothly.
- Before the process begins, they come up with renovation plans based on achieving the maximum ROI. This includes choosing the right materials and renovations based on the environment.
- Companies then lend money based on estimates for the project. Some charge interest on the money, while others take a discount on closing.
- Full-service companies have networks of contractors that have already been vetted and manage them throughout the process. Not all businesses have this option, so brokers should ask or they could get stuck managing a renovation.
- Throughout the process, full-service concierge companies also act as liaisons to keep realtors and homeowners informed. This gives a hands-off experience to brokers and clients.
Overall, it’s an incredibly streamlined engagement, making it replicable across numerous properties.
“Revive alone has more than 100 projects working at any one time,” says Jaggi. “That means if you have more than one home under your belt, a home concierge service can help you take care of them all.”
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Home concierge is the future of real estate
Many real estate agents across the country are considering or already offering a concierge. There is no doubt about it. House concierge will become the standard in the coming years.
Brokers who become early adopters will stand out simply by having this option. It gives both the broker and client a lot of creative agency, allowing them to make the best decision rather than a necessary one. In addition, they will prove to be innovative thought leaders in an ever-evolving space.
What we are seeing now is a trend of personalization and situational products for consumers in the real estate market. While concierge as the standard is still a few years in the future, this is just the start of a big move to provide more options to meet the needs of buyers and sellers.