Buyers and Sellers Demand More Services

Real estate brokerages say title insurance, home warranties, mortgages, and appraisals no longer fall into the category of ancillary services, as consumers' desire for one-stop shopping have prompted them to offer these as core services. "Fifteen years ago, the consumer's expectation was, 'Hey, sell my house.' Now the expectation is: 'Sell my house, get me a good loan, figure out how to get it closed with the title company, get it all done for me — I'm busy,'" says David Sobel, a Home Warranty of America sales executive. With the mortgage industry slammed by the subprime meltdown, real estate brokers increasingly are turning to concierge services — which involve contractor referrals and assistance in turning on utilities, among other tasks — to make money. Howard Hanna III, chairman and CEO of Pittsburgh-based Howard Hanna Real Estate, says his firm has bundled a variety of services for four decades, making the home sale and purchase processes more efficient, helping clients achieve cost savings, and bolstering the firm's reputation. While Hanna operates all core services internally, some companies opt to forge strategic partnerships with other firms for this purpose. In any respect, brokers must ensure that they comply with the Real Estate Settlement Procedures Act; and seminars and brochures regarding adherence to the law are now offered by the National Association of Realtors' Real Estate Services Program.

Courtesy: http://www.realtor.org