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This post was updated Jul. 31, 2024.
In today’s world, we have specialists for pretty much every aspect of our personal lives: a specialist for cutting our hair, a different specialist for color, then a specialist for nails, then pedicures and then finally someone who does facials. While each requires the same or similar licenses, we choose to go to the person who specializes in the very thing we want to be exceptional.
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In visiting our doctor or dentist, we go to specialists for our particular problem. It’s no longer acceptable to see an orthopedist for a knee issue. Instead, you would seek out a knee specialist — or, even more specifically, a knee specialist who works specifically on athletic injuries.
Today’s consumer is trained and has come to expect specialization in almost every aspect of their lives, but when they go to meet with a real estate agent, they are often disappointed with a generalist who handles buyers, sellers, residential, commercial, rentals, land, ranches, luxury and short-term vacation properties. That description says a lot to the consumer. “I also do knees.” Is that who you want helping you?
As commission lawsuits and subsequent settlements have upended both buy-side and sell-side transactions, it’s more important than ever to hone your expertise and present yourself as the answer to your clients’ goals and challenges. For homeowners who are navigating entirely new questions about compensation, concessions and pricing, the service of a true specialist is a particularly appealing unique value proposition (UVP).
Specialization is not merely a strategic advantage — it’s the cornerstone of providing unparalleled service and customized, specific solutions for your clients. For listing agents, sharpening specialty skills is crucial for standing out in a crowded marketplace. A listing agent’s primary responsibilities revolve around marketing, pricing and negotiating the sale of properties. Let’s delve into these roles and explore how team leaders can cultivate specialization within their teams.
Marketing: The art of selling homes
There are only three things a listing specialist should focus on. First, prospecting for listing appointments; second, going on listing appointments; and third, negotiating contracts. That’s it. The rest of the activities should be done by different specialists on the team, including the marketing of the homes, showings of the homes, holding the open houses, etc. Those activities that are not directly related to the first three should not involve the listing specialist.
Pricing: The science of valuation
Accurate pricing is a delicate balance that can make or break a sale. Listing agents must specialize in pricing strategies that reflect the true value of a property while remaining competitive in the market.
Specializing in pricing
- Comprehensive market analysis: Provide agents with tools and training to conduct thorough market analyses. Understanding the nuances of the local market is essential for setting the right price.
- Dynamic pricing strategies: Teach agents to be flexible with pricing strategies, taking into account factors such as seasonality, economic shifts and inventory levels.
- Communication of value: Train your agents to effectively communicate the rationale behind pricing to sellers, building trust and setting realistic expectations.
Negotiating: The art of the deal
Negotiation is where the listing agent’s expertise is most visible. It’s about advocating for the seller’s interests and securing the best possible terms.
Mastering negotiation as a listing agent
- Understand the buyer’s perspective: Train agents to understand the buyer’s motivations and constraints, which can provide leverage in negotiations.
- Finesse and diplomacy: Encourage agents to practice finesse and diplomacy. Negotiation is not just about being firm; it’s also about finding mutually beneficial solutions.
- Legal acumen: Ensure your agents are well-versed in the legal aspects of real estate transactions to navigate complex negotiation challenges confidently.
Specializing as a listing agent in practice
Creating a team of specialized listing agents means fostering an environment where continuous improvement is the norm. Here’s how team leaders can achieve this:
- Role specialization: Assign roles based on individual strengths, whether it’s marketing, staging, pricing, or closing deals.
- Invest in education: Provide ongoing training and professional development opportunities in advanced marketing techniques, market analysis and negotiation skills.
- Collaborative culture: When working on a team of specialists, buyer’s agents refer listing leads to the listing team, and listing agents create opportunities for buyer’s agents to show and represent buyers. Specializing means you stay in your lane and provide exceptional client services based on your specialty.
- Performance metrics: Set clear goals and metrics for each specialization area to measure success and guide improvement efforts. An example would be, if you want to earn $1 million a year in gross closed income, then all you have to do is understand what has to happen from a listing appointment perspective to accomplish that. Here is a hypothetical and I will use numbers for demonstration purposes only. Commissions are negotiable and the average sales price in different markets is just that, different.
Let’s say the average listing is $500,000.00. You charge a listing or sales commission of 2.75 percent. That means your average commission is $13,750 on each sale. So, if you don’t do anything else but focus on listings, you need 73 listings a year to earn a gross commission of $1 million.
If you close 50 percent of the appointments you go on, then you will need 146 listing appointments in a 12-month period to accomplish this. That’s just over 12 appointments per month, three appointments per week and less than one listing appointment per day. If you wake up every day broke and hungry and focus on prospecting until you set and go on one appointment per day, you will hit or exceed your income goal.
Let me ask you this: If you go on 146 appointments per year, do you think you will get better at listing homes, at the listing presentation, at pricing and at prospecting? Would you be better than an average agent who is a generalist who does seven transactions per year? The answer is, simply, yes. As you specialize, you become a true expert at the part of the business you focus on.
Specialization within a listing agent team is about more than just improving service — it’s about building a well-oiled machine where efficiency and expertise lead to outstanding results. By focusing on marketing, pricing and negotiating, listing agents can sharpen their skills and deliver unmatched service to sellers.
We know by tracking the performance of hundreds of high-performing teams that the ones who specialize in each area of the business outperform teams or individuals who are generalists and the teams are more profitable because they create compensation that is consistent with the position and the work required at their level of specialization.
As a team leader, nurturing these specializations can transform your real estate practice into a more profitable, esteemed business. Each listing you generate should create 1.5 buy-side closings, and your buyer specialists will be amazing at converting and closing those opportunities.
Empower your agents to become specialists in their respective roles, and watch as they become invaluable assets to your team and clients. Remember, in the world of real estate, “Most agents create jobs for themselves; very few create a business.” As the market becomes more complex and consumers have more questions than ever, let’s build a business where specialization is the foundation of excellence and success.
Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.
