Insights and opinions to cut through the noise and find your voice.
NAR’s recent settlement proposal has sent shockwaves through the real estate landscape, leaving agents reeling as they grapple with massive shifts. Buyer agents are now squarely under the microscope to prove their worth.
While the way seller agents earn commission may seem more straightforward, the role of buyer agents are often not, particularly in the throes of commission disputes. Faced with mounting scepticism from sellers, buyer agents must demonstrate their value proposition with vigor and finesse.
To distinguish themselves, buyer agents can use their value proposition as a tool to address client reservations. This means spotlighting the unique benefits and services they provide.
Expressing Core Values
At its essence, a value proposition is a succinct declaration that outlines why a client should go for a particular buyer agent’s services. It encompasses four important components that collectively construct a compelling argument for the agent’s worth:
- Addressing Needs: Acknowledging the fundamental challenges clients may encounter in the real estate process.
- Crafting Solutions: Proposing how the agent’s services will mitigate anticipated challenges.
- Emphasizing Advantages: Illustrating the exceptional nature of the services and how they save clients time, effort, and money.
- Risk-Free Assurance: Offering specific assurances, such as cancellation policies or guarantees, to safeguard clients’ interests.
State-Specific Adaptations
Given the variance in real estate regulations across states, a tailored approach to the value proposition is imperative to align with local norms. Agents should fine-tune and augment their proposition’s components to cater to the unique needs of clients and the nuances of the local market.
Furthermore, the value proposition sets clear expectations for potential buyers, emphasizing a commitment to providing enough time for inquiries and explaining the value proposition. This culminates in inviting clients to formalize the relationship through a representation agreement.
With client expectations in a constant state of flux, agents must show adaptability and proactively demonstrate their value.
Insights from Industry Experts
Grant Clayton, founder and CEO of 1 Percent Lists, advocates for a paradigm shift in the industry’s attitude, urging a focus on client interests over internal debates. Emphasizing exceptional service and competitive pricing, Clayton champions a departure from the traditional commission model.
Industry leaders like Joe Rath from Redfin and Russ Cofano of Collabra echo sentiments of change, suggesting a re-evaluation of compensation models to ensure fairness and reward skill and expertise.
Carl Medford, CEO of The Medford Team, underscores the importance of a strong value proposition and a personalized Buyer Bill of Rights in establishing trust and justifying commission. Tailored to the agent or brokerage’s business model, this strategy reaffirms commitments to clients while solidifying the agent’s role as a trusted partner in the real estate journey.
Image source Grant Clayton: Facebook, Joe Rath: LinkedIn
