It’s no secret that the real estate market in the United States is scorching hot. Real estate agents competing to win listings are always looking for ways to stand out from the competition.
Enter home concierge service.
Home Concierge started loaning homeowners money for updates before selling. It evolved to mean a lot more. Companies now offer full service concierge services to provide home renovation estimates, protect capital, manage contractors, and more.
In other words, a home concierge provides the infrastructure to create a turnkey solution. This increases the potential return on investment for homeowners and appeals to the massive buyers market of millennials.
Many real estate companies have already recognized the need for a home concierge. While big firms like Compass have created their own service, other real estate agents are partnering with outside companies.
We had the pleasure of sitting down with Dalip Jaggi, Co-Founder of Revive Concierge, to discuss the specifics of the 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 your customers an edge over the competition
Historically, it is the brokers who develop who are best equipped to outlast the others. Home Concierge is a way to propose a new solution to an existing problem.
It may appear that selling as it is, with some staging or paint retouching, is enough in the current market. You could sell as is and still get a bidding war. Still, there are situations when a renovation is the best option for customers.
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Provide personalized options
An individual plan goes a long way. Jaggi notes that it’s about giving customers more choices based on their specific needs.
“With a renovation plan as an option, real estate agents have another tool in their toolkit to work with,” he says. “By working with a home concierge service, they can combine the traditional CMA presentation with a renovation plan as a potential 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 home needs work, it offers homeowners an alternative to selling as is. This has long been a conundrum that many homeowners face. When a realtor comes to the table with solutions, he goes from being a person selling houses to being a real problem solver.
Position yourself as an industry expert
With the home concierge as an option, brokers become industry experts. It shows innovation and creativity when most people don’t go beyond measure. More importantly, a well-executed renovation should produce results.
“Brokers are judged on their results. A successful turnkey renovation will result in higher sales and increase the potential for future sales in the region, ”says Jaggi. “Neighborhood homeowners will see these realtors as experts when they see these results.”
Building a reputation for yourself as someone who can deliver is great for repeat business and attracting new customers. As an early adopter of the Home Concierge, you have a competitive advantage.
How to discuss the home concierge with your customers
Brokers have always been a source of information and orientation for buyers and sellers. The best way to introduce the home concierge is to educate them about the subject rather than turning it into a sales pitch.
“Put 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 can both make an informed decision together.”
To steer your conversation in the right direction, highlight certain areas for improvement in the household. Educate your customers about the importance 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 a Home Concierge Service
The real value that the home concierge service offers is no guesswork about renovations. Brokers work with companies that have systems and networks in place to ensure the process goes smoothly.
- Before the process begins, they create renovation plans based on achieving the maximum ROI. This includes choosing the right materials and renovations based on the environment.
- Companies then lend money for the project based on estimates. Some charge interest on the money while others take a cut on completion.
- Full service companies have networks of contractors who have already been audited and manage them throughout the process. Not all businesses have this option so brokers need to check or they could get stuck managing a renovation.
- Throughout the process, full-service concierge firms also act as liaisons to keep brokers and homeowners informed. This gives real estate agents and clients a hands-on experience.
Overall, it’s an incredibly streamlined engagement that makes it replicable across numerous properties.
“At Revive alone, over 100 projects are running at the same time,” says Jaggi. “That means if you have more than one property under your belt, a concierge service at home 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. No question. Home concierge will be the standard for the next few years.
Real estate agents who are becoming early adopters will stand out simply by having this option available. It gives a ton of creative agencies to both the broker and the client and empowers them to make the best decision rather than make a necessary decision. In addition, they will appear as innovative thought leaders in an ever-evolving space.
What we are currently seeing is a trend towards personalization and situational products for consumers in the real estate market. While concierge is still a few years into the future as the standard, this is just the beginning of a great move to offer more options to meet the needs of buyers and sellers.