Sometimes a realtor is just a salesperson. Their expertise is in getting a deal. That’s how NAR set everything up. Realtors sell houses, that’s it. But since our goal is to expand the role of a realtor, we must acknowledge it will require a complete change in mind-set.
Salespeople are solely focused on transactions. Nothing wrong with this of course other than being incredibly short-sighted. How many homes does a single person buy every decade?
Residential Asset Managers (RAMs) are realtors, but their focus is on the long-term health, preservation and improvement of residential property. The “home” is the client for the Asset Manager. And like their medical counterparts, their credo is to “do no harm”. Allowing the house to become the best home it can be.
Sound wacky? Sure, it does. But everything new at some point sounds funny. Our goal of expanding the role of a realtor includes a methodology that will allow realtors to realize a “re-occurring” revenue stream. Something home sales could never offer.
RAMs offer their services to homeowners on a yearly subscription basis. To understand the subscription, you must realize the mind-set from which it comes.
Financial analysts work with clients to manage their retirement portfolios. Consumers have no problem paying a professional to oversee their retirement accounts. But when it comes to the largest investment within everyone’s portfolio, the home, consumers have been left on their own. RAMs correct this situation.
For a small yearly fee, RAMs offer a menu of services. They begin with a complete home evaluation and how that evaluation relates to the home’s place within the neighborhood. They work with the homeowner to create a short- and long-term plan for their property that includes updating elements, refurbishing projects, and preventative care.
And like any General Practitioner, the RAM becomes the quarterback for all things related to the home. If you need a heart specialist, your GP will refer you. And if you need a plumber, call a realtor. Need medicine? Your GP will dose you. Need driveway work, your Asset Manager will take care of it.
And herein lies the breakthrough for the consumer.
“You mean for a small yearly subscription; I will never have to deal with a contractor again?” That’s the idea. The Residential Asset Manager (RAM) becomes the consumer’s conduit to the contractor community.
Taking multiple bids and vetting contractors is not something the average consumer does very well. But that’s exactly what successful realtors do every day. Every realtor will tell you they work from a well-vetted list of contractors for handing any number of areas. It’s part of the basic sales pitch and found in every Listing presentation one way or another.
But the fact is for a lot of realtors, it’s TRUE. On the sales side, an agent’s collective knowledge of the contractor community can make a huge difference with their customers.
It’s not very hard to imagine a certain percentage of consumers getting ripped off on every transaction they do on their own. Ripping-off in this case simply means getting far less than one expected. Homeowners working with a RAM streamline their processes and significantly reduce the odds of being taken advantage of. Kind of a no-brainer.
Another great benefit of having a RAM oversee work is that all the work gets documented.
When someone buys a high-end used car, they are presented with a folio of receipts documenting car repairs and oil changes. When someone buys a used home, they get a key. That’s it! Maybe they have a Sellers Disclosure, which may or may not be accurate.
Doesn’t it seem odd the largest investment a consumer will ever make comes with no paperwork? A RAMs documented work stays with the house and can be handed down to the next owners. This allows a new homeowner to at least have a starting point in creating their own plan for the property. Kind of like patient files only with addresses.
The sales pitch is easy. Who you are is in the name, Residential Asset Manager. When a RAM approaches homeowners, they DO NOT MENTION HOMES SALES, but rather talk of Asset condition and plans for maintenance and improvement. Your job is NOT to sell the house, it’s to make the house more valuable for the homeowner. A RAM is helping a homeowner with their portfolio’s largest asset. What can I do for you and your home?
Still, how does an agent get someone to pay for a subscription? Realtors sometimes overlook just how much data they have access to. For the most part, consumers don’t have access to this data.
All Americans seem to have a fascination with rankings and where things stand in the pecking order. And homeowners are no exception. Hence the time-worn expression’ “keeping up with the Joneses”. RAMs with the mountain of data at their fingertips can produce a report, series of reports or a home evaluation that a homeowner would find both useful and a good deal considering how much they paid ($250-$300)
Wynd Realty is currently working on presentation materials that each RAM can tailor to their specific style.
Once the RAM delivers their report to the homeowner, the agent/client relationship is much different from the traditional sales only agent. Instead of hounding a homeowner about when they are going to sell, a RAM works from the plan they and the homeowner have developed for the house.
Selling subscriptions is an easy way to develop a customer base. But the amount of work a RAM must undergo will make a many agents think twice about this approach. But never forget, the Subscription you sell today may very well be paying you for the next 10 years.
Most realtors will find this approach too hard. That’s because most realtors are salespeople. Sell and move on. This approach only works with agents who are really “into” homes. They love houses, they thrive and realize rewards from the process of improvement. True housing nerds! HGTV is probably one of their favorite networks.
In our next blog we will dig into the Project Management segment of our three-pronged approach. We will discuss the tools you will need and some of the sales approaches that will work best.
As we go through this, please remember, we are actively trying to expand and improve the role of realtor. It goes without saying, what we are proposing has never been done before.
Stay tuned.
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