It’s no secret that the real estate market is red hot across the United States. Realtors competing to win listings are always looking for ways to differentiate themselves from the competition.
Enter home concierge services.
Home concierge started as a way to lend money to homeowners for updates before selling. It has evolved to mean much more. Now, companies offer a full-service concierge service to provide home renovation estimates, front the capital, manage contractors, and more.
In other words, a home concierge provides the infrastructure to create a turnkey solution. This increases the potential return for homeowners and appeals to the massive millennial buyer market.
Many real estate firms have already recognized the need for home concierge. While major firms such as Compass have created their own service, other real estate agents team up with outside companies.
We’ve had the pleasure of sitting down with Revive Concierge co-founder Dalip Jaggi to discuss the ins and outs of home concierge. As a tech entrepreneur and former CTO of Rich Uncles, Jaggi is no stranger to the world of real estate innovation.
Here’s what we learned.
Give clients a leg up on the competition
Historically, it’s the Realtors who evolve that are best equipped to outlast the others. Home concierge is one way to propose a new solution to an already existing problem.
It may seem like selling as-is, with some staging or paint touch-ups, is enough in the current market. You could sell as-is and still get a bidding war. Even so, there are situations where renovation is the best option for clients.
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Provide personalized options
A personalized plan goes a long way. Jaggi notes that it’s about giving the client more choices based on their specific needs.
“Having a renovation plan as an option gives Realtors another tool in their toolkit to work with,” he says. “Working with a home concierge service, they can pair the traditional CMA presentation with a renovation plan as a potential option. Based on projections, the homeowner can choose the best option for their situation.”
To be clear, renovation doesn’t apply in every situation. When a house does need work, it offers homeowners a way out other than selling as-is. This has long been a conundrum that many homeowners face. If a Realtor comes to the table with solutions, it propels them from a person who sells houses to a true problem solver.
Position yourself as an industry expert
Having home concierge as an option positions Realtors as industry experts. It shows innovation and creativity when most people aren’t going above and beyond. More importantly, a well-executed renovation gets results.
“Realtors are judged on results. A successful turnkey renovation will lead to higher sales, increasing the potential of future sales in the area,” says Jaggi. “Homeowners in the neighborhood will look to this Realtor as an expert if they see these results.”
Garnering a reputation as someone who can deliver is great for repeat business and attracting new clients. As an early adopter of home concierge, you have a competitive advantage.
How to discuss home concierge with your clients
Realtors have always been a source of information and guidance for buyers and sellers. The best way to introduce home concierge is by educating them on the subject rather than making it a sales pitch.
“Frame it as a tool in your toolkit,” suggests Jaggi. “By offering it as an option and explaining what your vision of a renovation plan is, you both can make an informed decision together.”
To steer your conversation in the right direction, you’ll want to highlight certain areas of improvement around the home. Educate your clients on the meaning of turnkey and buyer trends. Another way to delve into this topic is to explain how the process works from start to finish.
What to expect from home concierge services
The real value that home concierge services offer comes from taking the guesswork out of renovations. Realtors team up with companies that have existing systems and networks to ensure that the process runs smoothly.
- Before the process starts, they come up with renovation plans based on achieving the maximum ROI. This includes choosing the right materials and renovations based on the area.
- Companies then lend money based on estimates for the project. Some charge interest on the money, while others take a cut at closing.
- Full-service companies have networks of contractors who have already been vetted and manage them throughout the process. Not all companies have this option, so Realtors need to ask, or they could get stuck managing a renovation.
- Throughout the process, full-service concierge companies also serve as liaisons to keep Realtors and homeowners informed. This gives a hands-off experience to Realtors and clients.
Overall, it’s an incredibly streamlined engagement, which makes it replicable across numerous properties.
“Revive alone has over 100 projects functioning at any given time,” says Jaggi. “That means if you’ve got more than one property 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 brokerages across the country are either considering concierge or are already offering it. There’s no question about it. Home concierge is going to be the standard within the next few years.
Realtors who become early adopters will stand out simply by having this option at their disposal. It gives both the Realtor and the client a ton of creative agency, empowering them to make the best decision rather than one of necessity. Furthermore, they will appear to be innovative thought leaders in an ever-evolving space.
What we’re seeing right now is a trend of personalization and situational products for consumers in the real estate market. Although concierge as the standard is still a few years into the future, it’s only the start of a big movement to offer more options to match buyers’ and sellers’ needs.