Foolish or futuristic ?

I got a call from a real-estate agent today. She found me through TheMakeoverShow.com, the blog for the "trade show" I am co-producing.

She was not only excited about the premise for the show (Making over your life in just one day - Home, Health and Image) but she apparently loved that someone who had a full-service home staging business was involved.

It seems she has a new business model which consists of giving her customers (about 25 through the end of 2009) home staging services. While this in and of itself is not news the fact that she budgets 1.5% of the selling price for staging is amazing.

After speaking to her at length it seems like the math all adds up for her.

She calculates that her ROI on staging costs, in terms of gaining new clients, is higher than if she used the equivalent money for door-to-door advertising. Now I don't know how it works in your part of the world but here it seems that most agents prepare post-cards or flyers, maybe even calendars with their coordinates and perhaps info on recent local sales they have. This costs them a lot of money. I am sure it must get them some clients or they wouldn't do it but statistically the return is likely not that high. In general post-card type advertising isn't wildly successful.

Her broker thinks she is crazy as do her colleagues. Her clients are thrilled.

She does not have higher rates than anyone else on her team, although she asks for an extended contract term.

What do you think ? Is she foolish or ahead of the curve to invest 1.5% of the selling price with no guarantee of the home being sold ? Do you think this is likely a more effective tool for gaining clients than other more traditional ways ?

Do you do this ? Would you consider taking this approach.

MK

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