Heath's Blog

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Do you charge $XXX.xx for a looker's first tour?

I ran across and idea today that I am considering implimenting in my business Cape Group Real Estate.  It isn't something that I am totally confident will work, so I am throwing it out here for comment. 

I have an office on Main Street.  And, we are a summer vacation town.  I can tell when the weather is bad by the number of "customers" who come in wanting to look at real estate.  With gas closing in on $5/gallon, I am thinking of requesting (not requiring) a $100 "deposit" to look at property - especially on gray days.

This will be credited at closing toward their closing fees.  I have a credit card processor in my office for another business I run (REindex.com The Site Engine).  I prefer not to "tour" people, but I also don't want to offend people actually looking for property.

Do you have anything like this in your office?  Ever heard of it?

Happy Selling and Listing!

 

[REindex.com, The Site Engine is a registered servicemark of REindex.com, LLC]

Heath Coker, Associate Broker
Robert Paul Properties
www.CapeGroup.com / capegroup@capegroup.com
508-274-5613  Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup  Skype: heath.coker

REindex.com, The Site Engine®
508-274-5613  reindex@reindex.com
See our 2 Minute YouTube www.REindex.com/WhatIsREindex.html
@RealEstateIndex

James Heath Coker | Create Your Badge

Comments

Utopia just does not exist. If you do that let me know how it works out. I have heard of buyers agencies that do charge do show you homes for a fee. But they don't make much money.

Posted by Thomas Santore Lic Associate Real Estate Broker, Realtor®-ABR-Land, Residential & Commercial Sa (Coldwell Banker Realty/Coldwell Banker Commercial NRT) over 12 years ago

Heath- What happens with the $100 if they do not buy a home? Because if you are going to give it back then what is the point? And if you aren't going to give it back, $100 is kind of steep even at $5/gallon. Not to mention it could deter some people if they won't get it back because that is $100 they could use for the gas back home as you said your in a big tourist area :-\. Kind of one of those who knows whats the best idea, I mean you don't want to keep wasting gas, but people might not be to thrilled about shelling out $100 on a home they might not truely love :-\. If they will get it back though or atleast part of it, then I don't think it would be so bad.

Posted by Chris Horton (Horton's Lawn Care L.L.C.) over 12 years ago

Hi Heath, It is kind of funny you mention this. Our office had an event today for our clients. As we were standing around talking, one of our agents brought up this idea. I walked in on the conversation so I'm not sure where she heard the concept. I don't think it is a bad idea. My concern is it might scare people off. You will always have agents trying to shortcut the system and put it as an advantage working with them.

One thing I am doing more of is asking people to do drive by in the various neigborhoods and eliminate houses that they don't like the outside appearance of the home or the neighborhood. Every little bit helps.

Dave

Posted by The Dave Ruwe Homes Team, Realtors (Re/Max Lakeshore) over 12 years ago

I think in all of our wildest dreams we wish to work on a "retainer" but this is real estate not the practice of law.  Unfortunately, it seems there are about as many agents as there is inventory.  If you don't show them property, someone else will.  What to do?  Screen, prequalify, get very, very specific in their needs, have them drive by and then make a tour of the homes they are interested in.  I don't know...this is a problem for all of us and the price of gas just makes it that much worse. Keep us informed on what you plan to do and how it works! Good luck!

Alyce Martin, Keller Williams Realty, Albuquerque

Posted by Alyce Martin, Albuquerque - THE Place To Be! (The Realty Group, LLC) over 12 years ago

I also work in a vacation area and have thought about this problem...Im as concerned about the waste of time as much as the wasted gas.   I like the idea of an on line tour in our conference room, a signed buyers brokers agreement, a pre approval letter and a non refundable retainer fee,  before we get into the car.   If they buy (on this trip to Fla) I will refund the retainer in the form of a commission rebate or discount 3 to 1

Posted by Ron Parise (LocateHomes.com) over 12 years ago

If they don't buy, the deposit doesn't get refunded.  I like your ideas, Ron.  I'm not sure it will work for each situation, but it will probably make the real lookers go waste someone else's time.  Real buyers may appreciate it more than a buyers contract - sort of a test run for the agent.

And you may be right Thomas, but they may not be good at what they do anyway.

Posted by Associate Broker Falmouth MA Cape Cod Heath Coker, Heath Coker Robert Paul Properties Falmouth MA (http://www.CapeGroup.com & http://www.REindex.com) over 12 years ago

Hi Heath - There is currently a thread going on about this on Real Talk.  If you are not familiar with this listserve it is through realtown.com.

Posted by Pam Dent, REALTOR® - Charlottesville Virginia Homes / Horse (Gayle Harvey Real Estate, Inc.) over 12 years ago

Thanx for the note, Pam.  I'm sure there are many places it is being discussed.  I'll look later.

Posted by Associate Broker Falmouth MA Cape Cod Heath Coker, Heath Coker Robert Paul Properties Falmouth MA (http://www.CapeGroup.com & http://www.REindex.com) over 12 years ago

Hi Heath... I have taken to having the buyers drive me... trust me... they become more selective about what they want to see when they are driving... smile...See you at MLS Annie

Posted by Annie Hart Cool, Cape Cod Real Estate Specialist (Sotheby's International REalty) over 12 years ago

Hi Heath... I have taken to having the buyers drive me... trust me... they become more selective about what they want to see when they are driving... smile...See you at MLS Annie

Posted by Annie Hart Cool, Cape Cod Real Estate Specialist (Sotheby's International REalty) over 12 years ago

I agree Annie.  I have done this, too, by suggesting that they might feel more comfortable instead of me pointing to things as I drive.

Posted by Associate Broker Falmouth MA Cape Cod Heath Coker, Heath Coker Robert Paul Properties Falmouth MA (http://www.CapeGroup.com & http://www.REindex.com) over 12 years ago

I would not work with an agent that felt they needed to charge a fee to show me a property.  We only want to work with people that want to work with us. 

We dont live in a vacation town.

Posted by Mindy & Jay Robbins, Expect Excellence from Robbins Real Estate (Robbins Real Estate) over 12 years ago

Why would they pay you $100 when they can (probably) walk down the street and find someone to take them for free? Better idea- qualify your buyers before you take them- what is their motivation, when might they move, have they been to see a lender yet, do they have money for a down payment, how is their credit? If the answer aren't good, just give them a map and suggest areas they might want to look at.

Posted by Leslie Prest, Owner, Assoc. Broker, Prest Realty, Payson, (Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ) over 12 years ago

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