The Story Behind In-House Services
Baird & Warner is a veteran in the one-stop brokerage sector. In addition to its own mortgage company, it also has its own title company, Baird & Warner Title Services. Both services are fully integrated into the business.
“We were one of the first real estate companies to move in this direction,” Ellis says. “We established our mortgage company 20 years ago, and our title company 15 years ago. It’s been a long-range vision for the company to offer those services.”
The common driving force behind Baird & Warner and its additional elements of service is simple: provide customers with an added convenience. Baird & Warner conducted research among its agents’ clients and found that when consumers did experience frustration, it was often due to additional services or steps associated with the process – which could be solved with an in-house service. In addition, trust is a factor – the more familiarity and trust an agent has with the multiple transactions facilitators, the more seamless the process will be.
“Consumers can get everything they need to complete the transaction from our branch office,” Ellis says. “They can find the house, secure financing, and can get their title services from the same place. The end result is they can close at any branch office – all of our branch offices are closing centers. Our in-house services give consumers and agents a great deal of control and convenience in case there are any bumps in transaction. We are able to resolve any issues very quickly.”
Becoming a one-stop brokerage is gaining steam, and there isn’t just one one-stop brokerage model to follow. @properties, for example, has its own non-traditional take; the company gives its clients the same advantages of a one-stop brokerage, but focuses on growing its affiliate relationships. It owns part of a title company, Proper Title, has an affiliate relationship with a mortgage company, Guaranteed Rate, and offers property management services and attorney relationships.
“We like partnerships where we work with experts,” says Michael Golden, the founder of @properties. “Many clients come to us in the process of finding a home and realize they need an attorney and mortgage loan officer. Most people don’t have these types relationships already established. Our goal is to facilitate these introductions and ensure the client/advisor relationships are as seamless as possible.”
New Construction
New construction sales are similar to resale transactions, but can encounter different challenges. Developer Ryland Homes offers one-stop services specifically for new construction clients to simplify the homebuying experience, which, with new construction, can involve more decision-making, such as choosing interiors and fixtures.
These services include a preferred lender finance program, title and homeowners insurance, and a 10-year warranty, according to Todd Condon, vice president of sales with Ryland Homes. The one-stop shop services help buyers have fewer out-of-pocket expenses, along with “the peace of mind of a long-term warranty and no unwanted surprises,” he says.
“One challenge is that buyers may not always understand the differences between buying new and buying used,” Condon explains. “Often, a ‘deal’ offered by a new construction company can sometimes lead to inconvenient and costly surprises. Ryland Homes avoids that by adding value and lessening confusion with its in-house services.”
Ryland Homes, Condon explains, is always looking to increase the number of agents to do business with, and since becoming a one-stop operation, broker loyalty, along with referrals from agents and existing Ryland homeowners, has increased substantially. With several necessary services in-house, the company has improved sales conversion and has seen a significant reduction in cancellations.
“Brokers can rest assured we’ll provide the best care and service possible for their clients,” Condon says.