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Buckle up; the game has changed.
The real estate landscape is shifting, and it’s all about empowering buyers. Starting Aug. 17, 2024, a landmark settlement with the National Association of Realtors (NAR) will be implemented, and promises to change the way commissions are handled.
Now, buyers will have more control, negotiating and potentially paying their agent’s commission directly. This means it’s more important than ever for buyers to understand the value their agent brings and have a clear agreement in place before starting their home search.
This shift means a few key things
- More transparency: Buyers will have a clearer understanding of how much they’re paying for representation, leading to more informed decisions.
- Increased competition: Agents will need to compete more aggressively for buyers based on their value proposition and negotiation skills.
- The power of the buyer presentation: Your ability to clearly articulate your value and secure a buyer representation agreement upfront has never been more crucial.
Don’t panic. This new landscape is full of opportunity. This article will equip you with the tools and strategies to adapt to this shift, master your buyer presentations and continue building a thriving real estate business.
7 tips for winning buyers
Ready to step up your game? Let’s dive into the essential tips you need to win clients and earn your commission in 2024 and beyond.
I’ve placed these tips in the order in which I believe you should talk about them in your presentation:
1. Introduce yourself
This is your chance to make a genuine connection with your potential client. Share your story and paint a picture of who you are, both as a professional and as a person.
Here are some key points to include:
- Your experience: Briefly outline your years of experience in real estate and the number of buyers you’ve helped. If you have any specializations (first-time homebuyers, luxury properties, etc.), highlight them here.
- Your expertise: Explain what makes you uniquely qualified to guide them through the buying process. Do you have extensive knowledge of the local market? Are you a skilled negotiator? Do you have a proven track record of success? Make this brief because we will go into more detail on your expertise later in the presentation.
- Your passion: Share your genuine enthusiasm for helping buyers find their dream homes. Explain why you’re passionate about real estate and how that passion translates into exceptional service for your clients.
- Your personal touch: Let your personality shine through. Share a personal anecdote or detail that helps the buyer connect with you on a human level.
Here are a few examples of how you could introduce yourself:
“Hi [buyer’s name], I’m [your name], and I’ve been a passionate real estate agent for [X] years. I’ve helped countless buyers navigate the complex world of real estate and find homes that truly reflect their dreams and lifestyles.”
“Real estate is more than just a job for me — it’s a passion. I love helping people find the perfect place to call home, and I’m committed to providing my clients with the knowledge, expertise and support they need to achieve their goals.”
“I’ve lived in this community for [X] years, and I know the local market like the back of my hand. Whether you’re looking for a family-friendly neighborhood with top-rated schools or a trendy urban condo with walkable amenities, I can help you find the perfect fit.”
Remember, this is your chance to make a great first impression. Be confident, personable and let your passion for real estate shine through.
2. Start with a bang
Kick off your presentation by painting a vivid picture of the challenges buyers face in today’s market. This will grab their attention and show them you understand their pain points.
Here are a few examples of how you can start with a bang:
- Tell a story: Share a brief anecdote about a recent client who struggled to find their dream home due to low inventory, bidding wars or skyrocketing prices. Emphasize the happy ending — how you helped them navigate those challenges and ultimately secure the perfect home.
- Share a startling statistic: “Did you know that the average home in [your market] is now selling for [X] percent over asking price?” or “According to the latest data, there are currently only [X] homes available in your desired neighborhood.”
- Highlight the emotional toll: Talk about the stress, frustration and uncertainty that many buyers experience during the home search process.
- Emphasize the new commission reality: “With the recent changes in commission rules, it’s more important than ever to have an experienced advocate on your side to help you navigate this complex landscape.”
3. Justify your commission
I wrote a previous article for Inman News called “Your essential marketing toolkit for a post-NAR settlement landscape”. In this article is a huge section devoted to how to justify your commission. I recommend you read it, but a summary is below.
Think of yourself as a financial advisor for real estate. Your expertise translates to real savings and smart investments for your clients. Here’s how to break it down:
- Local market mastery: You’re not just familiar with the local market — you’re an expert. You know the up-and-coming neighborhoods, the hidden gems and the school zones that matter. This knowledge isn’t just about finding a nice house; it’s about guiding your clients toward properties with the greatest potential for appreciation.
- Negotiation prowess: Numbers are your playground. You go beyond securing the house; you strategically negotiate repairs, closing costs and contract terms to put thousands back in your client’s pocket. Share examples of how your negotiation prowess has resulted in significant savings for past clients.
- Contract expertise: Contracts aren’t just paperwork to you; they’re a roadmap to protecting your client’s investment. Highlight your ability to spot potential pitfalls, ensure favorable terms and catch costly errors before they become problems.
- Problem-solving: Real estate is full of surprises. But you’re not just reactive, you’re proactive. Share stories about how you’ve anticipated issues and used your resourcefulness to keep deals on track, saving your clients time, money and stress.
- Access and advocacy: Your network is your client’s secret weapon. Explain how your connections with lenders, inspectors and other pros streamline the process and uncover off-market opportunities that other buyers might miss.
By focusing on your expertise, quantifying your value and sharing real-world results, you’ll create a powerful buyer presentation that not only justifies your commission but also positions you as the trusted advisor your clients need in this evolving market.
4. Add success stories and testimonials
Don’t underestimate the power of your past successes. Testimonials are more than just feel-good stories; they’re powerful tools to demonstrate your value proposition to potential clients. But to truly make an impact, it’s time to go beyond generic praise and focus on the numbers.
Encourage your clients to share specific, quantifiable examples of how you’ve helped them save money, maximize their investment or achieve their real estate goals.
Ditch the vague testimonials
Instead of “Jennifer was great!”, get specific about your impact:
- “Jennifer’s negotiation skills are priceless! She saved us $15,000 on our dream home, even in this crazy market!”
- “Jennifer went above and beyond to find us the perfect fixer-upper in our budget. Her knowledge of local contractors and renovation costs was invaluable — we were able to increase the home’s value by 20 percent in just 6 months!”
Share quantitative stories
Craft mini-case studies for your presentation that highlight your unique value:
- “Meet the Smiths! They were feeling discouraged after losing out on 3 bidding wars. I helped them refine their offer strategy and secure their dream home for $10,000 under budget!”
- “Relocating to a new city can be daunting. But for Maria, I made it a breeze. I helped her find the perfect neighborhood with top-rated schools AND secured her dream home for 5 percent below asking price!”
By focusing on specific results and real-world stories, you’ll paint a vivid picture of the value you bring to the table. This will make potential buyers feel confident in their decision to choose you as their trusted advisor in the competitive real estate market.
5. Include your local market expertise
As a dedicated buyer’s agent, you’re not just familiar with the local market—you live and breathe it. You know the pulse of each neighborhood, the hidden gems and the subtle nuances that make all the difference in finding your client the perfect home.
Here’s how your local expertise adds value for your buyer:
Insider intel: We’re not just talking about the basics you can find online. You know about the quiet, tree-lined streets that are perfect for families, the up-and-coming neighborhoods with untapped potential and the charming pockets of history that make a community unique.
Schools: For families, schools are a top priority. You have up-to-date information on school zones, extracurricular activities and even the inside scoop on which schools have the most engaged parent communities.
Future development: New developments, zoning changes and infrastructure projects can significantly impact property values. You stay ahead of the curve, keeping an eye on upcoming changes that could affect your investment, both positively and negatively.
Micro-markets: Every neighborhood has its own micro-market with unique pricing trends and dynamics. You analyze the data and understand the subtle differences to ensure your clients are not overpaying and that their offer is strategic and competitive.
Your goal isn’t just to find your client a house; it’s to find them a home that fits their lifestyle, their budget, and their long-term goals. By leveraging your local market expertise, you can help your clients make an informed decision and secure a property that not only brings them joy but also has the potential for appreciation. Make sure they understand the value of your local market expertise.
6. Explain your value at every point of the buying journey
In your presentation, give your potential buyer client a tour of the home-buying journey. Break down each step, highlighting your role as their trusted advisor and the value you bring:
Step 1: Getting pre-approved
- Your role: You’ll connect them with reputable lenders to secure pre-approval, which strengthens their offers and gives them a clear budget.
- Your value: You’ll help them navigate the pre-approval process, answer any questions they have, and advocate for them to get the best possible terms.
Step 2: Finding their dream home
- Your role: You’ll use your market expertise and powerful search tools to curate a list of properties that match their criteria. You’ll tour homes together, both virtually and in person, to find the perfect fit.
- Your value: You’ll go beyond the MLS to uncover hidden gems and off-market opportunities. You’ll also provide insights into neighborhoods, schools, zoning and amenities to help them make an informed decision.
Step 3: Presenting a winning offer
- Your role: You’ll analyze comparable sales, market trends and the property’s condition to help them craft a competitive offer that protects their interests.
- Your value: You’ll leverage your negotiation skills to secure the best possible price and terms while ensuring a smooth and timely closing.
Step 4: Due diligence
- Your role: You’ll coordinate inspections, appraisals and other due diligence tasks to ensure the property meets their expectations and uncover any potential issues.
- Your value: You’ll connect them with trusted professionals, review reports with them and negotiate repairs or credits on their behalf.
Step 5: Closing
- Your role: You’ll guide them through the closing process, ensuring all paperwork is complete, accurate and submitted on time.
- Your value: You’ll act as their advocate, communicating with all parties involved (lenders, attorneys, title companies) to ensure a smooth and successful closing.
Beyond the closing
- Your role: You’ll continue to be their resource for all things real estate, even after they’ve moved into their new home.
- Your value: You’ll provide ongoing support, answer questions and connect them with local service providers. You’re committed to building a lasting relationship with them, not just closing a deal.
7. Explain the new commission landscape (transparency)
Let’s talk about the elephant in the room: commissions. Don’t stress. I’m here to help you position yourself as the go-to expert your clients need.
Here are the four most important things to review with your potential client about buyer agency and commissions:
- What buyer agency is: Explain what buyer agency means to the buyer. You’re the champion for your buyer clients. Your loyalty lies solely with them, and you’re their advocate throughout the entire buying process. Here are a few key benefits you might want to share in your presentation:
- Unwavering loyalty: As a buyer’s agent, your sole focus is on your client’s best interests. You are not swayed by the seller’s goals or motivations. Your loyalty lies with the buyer, ensuring they get the best possible deal and terms.
- Confidant and advisor: You’re not just there to open doors; you’re their trusted advisor throughout the entire process. You’ll answer their questions, address their concerns and provide unbiased advice to empower your buyer to make informed decisions.
- Protection and advocacy: As their agent, you are legally obligated to protect their interests. You’ll help them navigate complex contracts, negotiate repairs and ensure all contingencies are met to protect their investment.
- Peace of mind: With you by their side, your buyer can have peace of mind knowing that they have a dedicated professional advocating for them every step of the way. They’ll never feel alone or overwhelmed in the process.
- Negotiated commissions: Here’s where things get interesting — and potentially more lucrative for you. It’s crucial to be upfront with your buyer from the start. Clearly explain that you will negotiate with the seller to cover as much of your commission as possible. However, if the seller is unwilling or unable to cover the full amount, the buyer will be responsible for the remainder if they choose to buy that home.
- Your commission structure and fee expectations: I strongly believe in transparency and open communication, especially when it comes to finances. You’ve already shared your value, now it’s time to share what you get paid. Lay it out clearly and with confidence because you’re worth it. Explain how it works, what services it covers and any potential scenarios where they might need to pay a portion directly.
- The buyer representation agreement: This is your new best friend. Before you dive into property showings, have your buyer sign your brokerage’s buyer agreement, which clearly outlines your services and the agreed-upon compensation. Explain that it’s designed to protect both of you and ensure everyone’s on the same page. If you have a buyer who hesitates to sign a longer-term agreement, I suggest using a short-term or single-property agreement. The goal is to move them to a longer-term contract but get to know each other first. With time their trust in you will build.
Your buyer presentation is your superpower — unleash it!
Remember, in this brave new world of real estate commissions, you hold the power. Your buyer presentation is your chance to not only showcase your expertise but also your passion for helping clients achieve their homeownership dreams. By focusing on the real value you bring — through market mastery, negotiation skills, contract smarts and unwavering advocacy — you’ll win over hearts (and signatures) every time.
So, go forth and conquer those buyer presentations. Be confident, be transparent and be the real estate rockstar you were born to be. This new commission landscape might seem daunting, but with the right approach, it’s an opportunity to shine brighter than ever before. Now go make some magic happen.
