These days, real estate companies are going both ways --
bundling and unbundling.
For sellers, in particular, who want to save commissions
by handling a large part of the sale process themselves, some
firms offer "unbundled services." For a flat fee, or a low
commission, they will provide only the help a particular
seller may want. Most often requested are:
- Comparative market analysis to aid in setting the right asking price
- A "for sale" lawn sign.
- Advice about writing ads.
- Information about government regulations: fair housing rules, required
notifications (lead paint for example), local requirements.
- Assistance in negotiating a written contract.
The broker's expertise can also come in handy for analyzing the buyer's
financial situation, and recommending a strategy for financing the purchase.
If desired, the brokerage may field phone calls, but won't accompany
prospective buyers to view the house. This represents a big saving in time and
efficiency for the agency. The other big saving comes in advertising (usually a
broker's main expense), because the homesellers will arrange that on their own.
So that's unbundling.
And on the other end is a trend, particularly with large real estate firms,
to offer "one-stop" service. Subject to state and federal regulations, many
real estate brokers foresee an office that offers real estate services, homeowners insurance, mortgage financing, tie-ins with moving companies and the like, all under one
convenient roof.
Bundled services. They can go either way.
Published: June 24, 1999
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