Topic: Joining up with a realestate agent

[pressurepros]

This is an interesting offer.  If the agent is going to send them all out in a short period of time, it's probably a good investment.  5000 magnets at $0.07 per delivered is good depending on what your ad space is.  I would also demand that you're the only pressure washer on it.
I wouldn't care if she is profiting in some way.  If it's a good deal, it's mutually beneficial.
Agents send out magnets all the time and the huge majority go in the trash.  She is looking for a way to keep it out of the trash and on the fridge by using other services a homeowner might use. 
I'd look at it very seriously.

+1

[apple]

If I was an agent and stood to make 6,8,10 k + by selling an average home id dish out 3-400 bucks to make my listings stand out above the million others in the area.

Of the agents I know None of them think that way.

Yes, IF you stood to make 6,8,10 k. But the devil is in the details...

The average American home price is $175k.  The average real estate commission is 6% (trending toward 5%).  That commission is typically split 50/50 with the selling agent.  That means the listing agent collects $5250.  The typical agent pays the broker a fee per sale and "desk fee" per month for being a member of the agency.  So they actually net about 50% ($2625) BEFORE operational expenses. 

So adding a $300 house wash reduces their gross profit by ~11.5%. Don't know about a real estate agents oper expenses, but I would guess that about 25% is overhead, and another 15-20% is marketing.  That brings their net profit for the sale at ~$1575, and makes a $300 house wash about 20% of their net profits.  And a 20% hit on net profit is significant in any business.

To put it another way, if you were selling a $10,000 used truck, would you pay $2000 to have it detailed so it would sell faster?

Naw, If I was selling a 10000 used truck id clean it myself so it would sell faster. I see where youre coming from but my real point is they honestly dont give a damn what a home looks like on the outside. When In my mind I think it would make a difference. Especially when there are more realtors than there are pressure washers!

Ive had a realtor who Ive known a long time look me in the eye and say "no one notices that dirty roof" 

Oh well

[pressurepros]

Ive had a realtor who Ive known a long time look me in the eye and say "no one notices that dirty roof" 

Oh well

Look him back in the eye and say "You may be right but its a salesperson's job to get potential buys excited about the property. Wouldn't it be easier for you right from the beginning if you could sell how clean and well maintained a property is?"

I hear ya about RE agents. I have finally connected with some good ones that fed me work over the winter. Once they see how much easier curb appeal and staging makes their job, they buy in. Unfortunately, realtors are usually technicians, not entrepreneurs.

[apple]

This is where my part of selling the agent should come in.

Working on that part.

[Philip93]

If I was selling a 10000 used truck id clean it myself so it would sell faster.

Exactly.  YOU would clean YOUR vehicle.  But you would not give someone else 20% to clean it for you.  Now put yourself in their shoes.  It's not the RE agents house.  And who does the RE agent want to pay for the cleaning?  The owner.

I don't think it's that they don't want it clean, it's that situationally it's not something they have control over so they just accept it. And they have accepted it so long, it just "is" (see Ken's comment).  Test your ehory;  Run a $29.95 special for RE agents. I think you will find that a lot of them care.  They just can't (mentally or actually) see it providing enough value to justify a 20% hit for it.

Now, if you want to seriously play in this market/space, find out their avg time on the market and their cost per day on the market.  Work out a plan where they pay you so much for every day under the average and nothing if it sits longer.  For example;

Assume
------------
$300 wash job.
Avg days on market 90.
Avg agent cost per day, $10.00. (This is a WAG)

Plan:
We wash for nothing up front, you pay me $10.00 for every day under 90.

Benefits to agent: 
Their total cost is not increased by hiring you.
The have no risk.
Houses sells faster.

Benefits  to you: 
If house sells in 60 days or under, you make premium $$$

I think what you will find (and your agents are telling you indirectly) is that their carry costs are low enough  that there is rarely a scenario in which they stand to profit (or break even) by adding your service.  Even if their costs as I assumed (high), your services must make a 33% (or better) reduction in the sales cycle to benefit you. And while a wash job will help, that much of an impact is unlikely unless the house looked like s**t before.


When it's all said and done, everyone is trying to make money. If you can build a case and show where your service creates a net gain, you will have TONS of RE business coming your way.

[apple]

Phillip I read all of your post and my head hurts.... No really you hit the nail on the head. Agents dont care because it doesnt benefit them monetarily.

Id honestly be suprised if many agents have broke it down as well as you have.

But still it shocks me that people dont care if a homes exterior is filthy when they are trying to sell them. I know I wouldnt think of selling a home like that.

But thats just me.

[ECSKY]

A local realestate agent contacted me and wants me to add my business card to her magnetic add.  She will recommend cleanings for me with this agreement. Cost for 5000 magnetics and her support will be $350.

I have a meeting Thu, is there anything i should be aware of?

Thanks 

Stephen

Run, Run, Run. This is a scam. How many other "Contractors" has she called. How can you verify there being made and how can you control how there passed out?

[Supreme Clean]

I have had absolutely no luck at all getting any work from RE agents. If I were an agent, I would not spend my money to do any work at all on a clients property. If the property owner wants the property sold, then they need to prepare the property to be sold. Whether it is curb apeal, new roof, A/C.......whatever it is, spend the damn money to prepare it for sale. Unfortunately, today there are too many properties for sale because the owner can not afford the mortgage on it. So, don't think they are willing to spend $ on their property.