Some people call it vertical integration.
Others like the term “ancillary business.”
You might hear “full-service.” “Turnkey.”
Or maybe even “the Amazon model” thrown around in these kinds of conversations, too.
Whatever you want to call it, we’re talking about adding closely related services for a one-stop experience.
That’s right: More services, under one roof, to drive your biz and wow your clients.
Get to Know the One-Stop Service
Let us paint a little picture for you:
Imagine a hospital that’s doing pretty well on its own.
So, one day, it buys up the pharmacy down the street.
Then, an outpatient mental health clinic.
Then, a physical therapist’s office.
Suddenly, that hospital is offering easy access to any service the average patient might need or want.
And now, in this hypothetical world? That hypothetical hospital and its hypothetical patients are both doing quite a bit better than just “pretty well.”
Now, replace the hospital in your mind’s eye with your real estate biz.
Where could you improve offerings?
Which closely related verticals could you tack on?
And what might that mean for your business?
Because the reality is that one-stop shopping is here to stay.
One-Stop by the Numbers
The most recently available data from the National Association of REALTORSⓇ shows that a whopping 95% of homebuyers would consider a one-stop shop model.
95%!! You could probably step outside, throw a rock, and hit someone in that category.
Now, just to be clear, you shouldn’t literally throw a rock…
But, as a savvy real estate pro, your interest should definitely be piqued.
All the Benefits of a One-Stop Experience
So, why did that hypothetical hospital move to the one-stop model?
Easy. Their brilliant ownership recognized all the big benefits:
Differentiation
Do you know how many real estate brokerage firms are operating in the U.S. right now?
If you said, “more than 360,000,” you’d be right on the money.
If you want to make the most of your business, you need to stand out from the crowd. Offering additional services can showcase how much more you have to offer than that one—or 10—brokerages down the street.
Improved Experience
Let’s be real: You’ve got high standards when it comes to customer service.
Can you say the same thing about half the mortgage pros in town? Be honest!
When you increase offerings, you control the client experience from beginning to end. You can ensure everything is up to your high standards, every single step of the way.
Then, you might just see the repeat and referral business pour in.
Futureproofing
Have you ever heard of a little financial strategy called, “differentiation?”
The thought is, that when you mix around your investments or income streams, you’re better protected from losses.
So, let’s say the economy and real estate market dip, for example. Refinance applications might just go up!
If you offered both services, you could potentially benefit no matter what the market does. How many other real estate pros that you know could say the same?
Your One-Stop Opportunities are (Almost) Endless
There are lots of opportunities when it comes to building your one-stop experience.
You could consider home insurance.
Property management.
Title services.
Or maybe even home staging.
But mortgage services might just take the cake.
Because let’s face it: mortgage makes sense. These kinds of services fit right in with your real estate offerings and they’re a natural next step after the real estate agent’s job is done.
Plus, less than one-third of homes are bought with cash! That means that most of your clients simply need to get a mortgage from somewhere. Why not from your ancillary business?
And with mortgage broker fees totaling up to 2.75% of the loan’s principal? Well, we’ll let you do the math.
Is it Time to Open Up Your One-Stop Experience?
So, there you have it: The one-stop home buying experience!
Will you be moving gray sectionals into empty apartments as a pro stager?
Or maybe brushing up on your property management chops by drafting lease agreements?
Or maybe just helping the clients you already know so well explore their loan options as a mortgage franchise rockstar?
Whatever you decide, and whichever ancillary businesses you might like to tack on, we’re rooting for you and your real estate biz.
And, hey, who knows. Eventually, you might find yourself and your brokerage looking a lot like that hypothetical hospital. AKA, doing quite a bit better than just “pretty well.”
Published on December 30, 2024
