Communicating Your Value

The way you do business is changing. The NAR lawsuit settlement removes offers of cooperating compensation from the MLS and requires written agreements when you work with buyers.

Along with these new requirements, today’s clients may take a closer look at what you bring to the real estate transaction. If you want to continue succeeding in this business, it’s never been more important to demonstrate to each client why you are worth the cost.

All agents and brokers can benefit from improving their value proposition. Here’s what three experts advise.

“Right now, the public is looking at us and asking, ‘What do you really do?’” says coach and instructor Pat Strong. “They’re saying, ‘Let me see your credentials. Let me see your marketing plan. What’s in it for me?’ If we don’t express what’s in it for them, we miss the mark.”

What do you do?

So why should a client hire you? If you haven’t spent a lot of time with this question, start here.

“If you have any hope that clients will understand your value, you have to understand it first,” says Angela Brutsché, Vice President of Communications and Marketing for Texas REALTORS®. “You must know your strengths, how those strengths relate to what customers need, and what makes you uniquely qualified to meet the needs of those customers.”

A longtime educator, Strong asks her students to brainstorm the top things they do that bring value to clients. “Then take it to the next level and discuss feature, benefit, and close,” she says. “So often the benefit is left out. Let’s say I’m a seller’s agent and my feature is that I will put your listing on 10 websites. OK, what’s the benefit? The benefit is that we will get this many more hits by doing that.”

From there, agents should internalize their scripts so their value proposition becomes second nature, Strong says. “If you’re just going to put a sign in the yard and take some pictures, anyone can do that,” she says. “What else are you going to do for me?”

Brian Boero of marketing and branding firm 1000watt recommends an exercise called First, Best, Only. “Sit down and think to yourself: What was I the first to do in my market? It doesn’t have to be big. Next, what is the thing that I am convincingly the best at? Maybe I offer strategy or have great relationships with listing agents. Then, what do I do that nobody else in the market does?”

If you have a niche or if you specialize in a client base, highlight it, he advises. There were over 230,000 licensed agents and brokers in Texas in April, according to TREC. Differentiation is essential.

Identifying where your ideal audience is and thinking about where and how they can be reached is also important, Brutsché says.

Do you do what clients value?

Two of the most important things a good buyer’s agent does are mitigate risk and help buyers do their due diligence in the transaction, Boero says.

“A home is a big, scary, expensive purchase,” he notes. “If I buy a house that could bankrupt me, I’ve messed up my entire life. I can’t afford to make a mistake.” A good buyer’s agent helps buyers find the best house that meets the buyer’s criteria.

A good buyer’s agent also helps the client navigate the complexities of the deal, from explaining the contracts to negotiating price. Agents can help buyers avoid overpaying and guide them toward competitive offers.

“When an agent or broker demonstrates real value, that person may be doing these things without thinking about it,” Boero says. “It’s important to focus on communicating these things that are most important to clients. I don’t recommend that you say, ‘I’m available all hours of the day and night and will drive you around all day Saturday in my Lexus.’ That’s not the important stuff.”

By matching your brand and services to your clients’ needs, you make clients more receptive to hearing positive information about you, such as customer success stories and testimonials, Brutsché notes.

Build trust through honesty and consistency

Communicating your value is not merely a speech to recite at your first substantial meeting with a client. You live it and express it throughout the transaction.

Strong recommends sending information packets before meeting with clients. These packets can include testimonials from past clients, a list of your credentials and a bio, and other relevant information. It sets the tone, she explains.

“The very first thing you do when you’re face-to-face is ask them, ‘What are your expectations of me as your agent?’” she says. “Lay it on the table, then shut your mouth and let them tell you. If you don’t know who they are and what they want, you won’t be able to fulfill their needs.”

Engrossing yourself in serving customers and exceeding their expectations can position you as a valuable, trustworthy resource, Brutsché says.

Boero emphasizes that you must be authentic in your marketing. “You want to create a connection with them,” he says. “Creating a connection requires recognizing a truth that they are feeling.”

He says buyers in many markets—especially younger buyers—are not feeling optimistic about buying homes. Home prices and mortgage rates remain high and inventory is growing but still tight in many areas. “Marketing that says something like ‘I make dreams come true’ will fall flat with these buyers. Acknowledging that ‘It’s really tough out there but I can help you because I have these skills’ will connect.”

Maintain trust through transparency and listening

It’s crucial that you do what you say you will do, Boero continues. At the beginning of the transaction, explain how you create value and how much you expect to be compensated, then deliver on your promises.

“For some people, their value package becomes a checklist,” Strong says. “They explain what they’re going to do and give a sheet to the client. They ask the client to check off what the agent has done. It works well with clients who are very meticulous.”

You can get past preconceived notions and client concerns through complete openness, Boero recommends. Don’t avoid conversations about tough topics, including recent news about the lawsuits, he adds.

“Surveys say that only about half of consumers are even aware of the class action verdict and proposed settlement,” Boero says. “For younger buyers, the percentage is even less. You need to be confident in addressing what your clients are hearing out there in the media or elsewhere.” Being willing to answer questions builds trust.

Why co-branding matters

Many agents are part of teams, brokerages, or franchises with existing branding. Their branding may offer you name recognition and confer some credibility, but there are advantages to having your own branding in addition to theirs.

“I say to brokers, ‘You need to have a company value package,’” Strong says. “‘Give this company value package to each of your agents and tell them to add to it. Add their personalized value package over and above, but keep it all consistent within the company.’”

Your own branding is valuable because it can follow you throughout your career and it allows you to further differentiate in the market, Strong says.

How can being a REALTOR® help?

Your membership as a REALTOR® is another way you can distinguish yourself from other real estate license holders. Tell your prospects and clients about the advantages your membership provides. Members of Texas REALTORS® enjoy dozens of additional forms, can access the most accurate market data, benefit from advocacy that helps the industry and consumers, and adhere to higher ethical standards.

“I teach tying in the Code of Ethics in every listing and buyer presentation,” Strong says. “During listing presentations, I would say that not all real estate agents are REALTORS®. We are held to a higher standard called the Code of Ethics. I love to hand out three or four passages from the Code of Ethics specific to listings and buyers.”

How do you know if it’s working?

Identifying key performance indicators can help you determine what is working best and how you can improve, Brutsché says.

This could include customer surveys, social media interactions and impressions, and referrals. Consider establishing goals for your improved communication and a plan for how to achieve them, she advocates. Improve my scripts to get more business is too vague of a goal.

Communicating value isn’t optional

“Considering what matters most to each prospect and how you can serve their needs is essential information you should be communicating,” Brutsché says. “While the way you present and deliver value will differ, you must be able to articulate why customers should work with you.”

For Boero, the benefits of working on communicating your value are clear. “I read thousands of listings. Ninety five percent of the information is the same,” he says. “To the extent you can differentiate yourself and tell a compelling story, you will win more often.

“Buyer’s agents who do not convincingly articulate their value proposition will struggle to survive in this business,” he says. “You have to explain why you’re worth your compensation and why you’re different.”