Your job is not to sell houses.* It is to sell representation!**
History lesson: back in the Dark Ages, when I sold real estate, the agent’s value was access to information and available properties. Home buyers didn’t have this information and had to deal with us to gain access.
Today, they have all of the information . . . so if we stay stuck in that old paradigm, our value is our lockbox key – the ability to open the door.
Is the fact that you have a key worth, oh, thousands of dollars?
If you answered ‘no,’ you’d be correct!
So why would any buyer work with you rather than going directly to the listing agent (where they think they might save that buyer side commission)? What is your value?
You may be thinking of a lot of different things you do for you buyers; things like advising, solving problems, negotiating, handling inspections and so on. But what they all boil down to is this:
Representation.
So, why are we so reluctant to talk with our buyers about it? Why is it so difficult to have a frank conversation about agency and how it affects them, so that they can make an informed decision?
I know. You think that’s all implied, understood and taken care of by that little box you check in the purchase agreement. And I guess, if you’re lucky enough to get them on paper, that little box protects you somehow. But that’s not the point! Talking with your buyer prospects early on about representation makes a strong statement about the value you bring to their transaction. It is why you are worth, oh, thousands of dollars!
My crystal ball tells me that in the not so distant future, buyers will contract with agents to represent them for a fee. The fee may be paid up front or maybe it will be rolled into the transaction . . . but it won’t be paid by the seller. This is a good thing! It’s logical and transparent.
It also means that in order to secure a buyer client, you’re going to have to make a presentation about the value you will bring to their transaction in exchange for the fee they will pay.
So why not act as if that’s what happens today? Why not plan to have a discussion about representation with every buyer before becoming deeply involved? It’s the best way I know to demonstrate your value and cement the buyer relationship.
And by the way – the discussion has a name. It’s called:
The Buyer Consultation.
If you’ve taken Jack Bailey’s Buyer Consultant Training program you learned it. If not, I have a resource for you. Log on to OMS. Go to Marketing & Content and then to the Download Library. Select the Training folder and then Buyer Consultation. In that folder you will find two different versions of ten videos on how to do the consultation. The .Mp4 versions can be viewed online, while the .WMV versions can be downloaded and kept on your computer. You’ll also see another folder entitled ‘Buyer Consultation Software.’ It includes the installation files and guides on how to install and how to use it. The software is an excellent addition to your consultation and makes you look even more valuable.
So: stop thinking that people will gladly pay you thousands of dollars for your sparkling personality and your ability to open doors. Your value is so much more than that! But, they’ll never understand your value if you don’t take the time to tell them. Have the agency discussion – the Buyer Consultation — up front before you invest time and energy.
*’You job is not to sell houses.’ They sell themselves. It has been scientifically proven in several double blind studies that you can’t sell someone a house they don’t want. So stop thinking you sell houses for a living. Your Value lies elsewhere!
**’It is to sell representation.’ I used the word ‘sell’ for shock value. No, you don’t ‘sell’ representation; you present it. And the customer chooses it. And they can’t choose you if you don’t explain what they get when they do!
Awesome