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This post was updated Jul. 31, 2024.
Imagine going into a doctor’s office and being greeted by the doctor who then asks for your insurance information. Or having your general practitioner attempt to perform complex brain surgery. We live in a world where, as consumers, we get to select specialists for just about everything we engage in. We have a specialist for our haircuts, a different one for the color, a different specialist for skin care and another one who does feet.
We shop at specialty food stores, and we select doctors who have specialties in the areas we need help. Then we meet with a licensed real estate agent who says, “When you choose me, you get me. I do it all. I work with buyers, sellers, investors, commercial and residential. I do rentals, and even land deals. Once it’s under contract, I handle all the paperwork, take my own photos, do the negotiation, and coordinate all of the people involved in the transaction.”
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Is it possible that sometimes agents do all of these things at the expense of things that are more important in their businesses and their lives?
I can’t think of any business that is wildly successful financially, has great income, where the owner has excellent work-life balance, and it’s a company of one.
If the consumer is accustomed to working with specialists, why, in what is probably their most important purchase, would they want to work with a generalist?
I know that when you specialize in anything, and you do it over and over again, you simply get better at it than someone who drops in and does it occasionally. So, what does that mean in today’s real estate climate?
It means there are massive opportunities for teams to grow and deliver services that are specialized to the consumer’s needs: a team of buyer, listing, showing and administrative specialists.
Specialization isn’t just a strategic advantage — it’s a necessity for exceptional service. For buyer’s agents, focusing on specific skills makes all the difference. A buyer’s agent has three main jobs: prospect, show and sell houses, and negotiate contracts.
Let’s dive into these roles and how team leaders can foster specialization within their teams.
Prospecting: The art of finding buyers
Prospecting is the lifeblood of any successful buyer’s agent. It’s about building a pipeline of future opportunities. Picking up the phone daily is tough, but what are you leaving on the table if you don’t?
Do the math:
- 10 hours of prospecting per week
- 20 leads generated
- 2 clients secured
- Estimated $10,000 commission per client (Commission is negotiable. This is not an attempt to set price or determine commission paid, simply a number for demonstration purposes.)
That’s $20,000 in possible commissions for 10 hours of prospecting, making each hour of prospecting worth as much as $2,000 or more. As a team leader, help your agents understand that the hard part of this business is client acquisition — finding clients, setting appointments and getting agreements signed.
It’s the most important thing we do, and we spend most of our days doing other things not directly related to money-making activities. Prioritize daily role-plays and structured prospecting time to get your agents into production and watch their future pipeline grow.
If we’re not showing homes or negotiating a contract, we should be prospecting. In well-run teams, everything else is done by the team staff who are experts in those areas.
Showing and selling homes: Matching homes with buyers
Once prospects are identified, the next step is showing them homes that match their criteria. Specialization here requires a deep understanding of buyers’ needs, the local market and available inventory.
Specializing in showing and selling:
- Deep market knowledge: Encourage agents to study the local market. Provide access to reports and data. Schedule regular market update meetings.
- Presentation skills: Train agents to showcase homes effectively. Organize mock showings and feedback sessions.
- Technology utilization: Leverage tech like virtual tours and 3D walkthroughs. Invest in the necessary tools.
- Client follow-up: Ensure consistent follow-up with clients. Implement a follow-up protocol, and use CRM systems.
- Building relationships: Foster strong relationships with other real estate professionals. Organize networking events and collaborations.
Negotiating: Securing the best deal
To excel in negotiations, a buyer’s agent must understand market dynamics, legal implications and the psychology of sales.
Understanding market dynamics:
- Stay informed: Keep up with local and national real estate trends. This knowledge helps set realistic expectations and craft compelling arguments.
- Analyze comparable sales: Use comps to justify offers or counteroffers. Understanding the nuances of comps provides a strong foundation.
- Recognize market cycles: Identify whether it’s a buyer’s or seller’s market and adjust tactics accordingly.
Navigating legal implications:
- Know the contract: Be familiar with all clauses and contingencies in real estate contracts.
- Stay compliant: Ensure all negotiations comply with state and federal laws.
- Consult with experts: Build relationships with real estate attorneys and other legal professionals.
Mastering the psychology of sales:
- Build rapport: Establish connections with the listing agent and sellers.
- Understand motivations: Learn what drives the seller and tailor your strategy accordingly.
- Communicate effectively: Listen actively, and articulate your client’s position clearly.
- Be patient: Recognize that negotiations can take time. Don’t rush the process.
- Manage emotions: Encourage decisions based on facts, not emotions.
- Leverage concessions: Understand the power of give-and-take.
- Use silence: Silence can prompt the other party to reveal information or make concessions.
- Prepare for multiple scenarios: Anticipate counteroffers and objections. Have responses ready to keep negotiations moving forward.
Specialization within a team isn’t just about enhancing service; it’s about creating a powerhouse of efficiency and effectiveness. Focus on prospecting, showing and selling homes, as well as negotiating, and you’ll see your buyer’s agents refine their expertise and deliver superior results.
As a team leader, driving these specializations leads to a more profitable and reputable real estate practice. Leverage each team member’s unique abilities for the greater good of the team and the clients they serve. With the right support and resources, specialized buyer’s agents become invaluable assets, driving success for everyone involved.
It has been said that “most real estate agents create jobs for themselves; very few create a business.” Let’s build a business where specialization drives excellence and success across the board.
Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.
