Last updated on October 21st, 2024 at 05:45 pm

Last Updated on October 21, 2024 by

It’s been a bumpy ride making the transition from the decades-long approach to selling real estate that most agents had become familiar with. It’s very clear that bureaucrats have decided that there is no need for a buyer to pay a real estate agent to help them find a home for them. Meaning, that bureaucrats don’t think buyers agents deserve to earn commissions. If the bureaucrats fully understood how the system worked or even cared how it worked, they would have left the system in place.

The real estate business model has been significantly altered. It’s time to deal with it in a way that makes sense. We need to create new methods to continue working with our buyer clients. Commissions, fees, and income are not dirty words. Real estate agents have a right to discuss the concept of commissions. It’s time for a change in how we do business. The items listed below are just a start, food for thought on how real estate agents can prove they do offer something significant for their clients. No matter how much automation works its way into the industry, people make everything work.

Be sure your buyers are qualified

The timing for these changes may be good or terrible depending upon your own situation. High interest rates and higher home costs are making it more difficult for buyers to find a house they can afford. Real estate agents must work harder to ensure their buyers are qualified to make an offer if they find a house. Because some buyer clients may not want to sign the representation agreement now, spend your time with those who can afford to buy. Start almost immediately after meeting the prospective buyers with “Are you pre-qualified”. You may not want to proceed to show houses until you get this step done.

By now you understand that every real estate agent must sign an agreement for the real estate agent to represent them. This is not a new situation in some states but it is a “big” deal in states where it did not previously exist. Even where a representation contract did exist, the idea that the real estate agent must negotiate their commission with the buyer is new. Not all real estate agents feel comfortable with this specific change.

There are no experts yet!

The court settlement is new for all agents and brokers. Regardless of the years, you have been selling real estate, everyone starts from the same place now. The best way to navigate through this is to first understand the new rules if you can by reading and watching the videos and attending classes. The next step which should really help is to talk with real estate agents who came from a sales background where the commissions or prices for products were negotiated. Build your confidence about approaching your clients.

Brainstorm with your broker and other agents about what to do. Finally, keep up with those agents who have already been in the trenches, and get feedback on their experiences.

Create a sales pitch on paper

Create your approach on paper. Telling the prospective buyer or seller all of the key points about the new form you will be asking them to complete. It’s also time to discuss your value. Be sure to mention that very little other than the forms have changed in decades. The idea that real estate agents would not discuss their commissions is a fabrication. Speak for yourself and those that you know. Why not charge 8% or 3%, determine your value to the client and their value to you.

Many agents who have represented a buyer in the past and have another opportunity to represent that past buyer in a new transaction will take that into consideration. For example, you may want to charge 3.5% for your work but this former client is back and you want to reward them. Explain how you are lowering your commission to 2.75% because they used you again. Develop a strategy that makes sense. Run your strategy by friends and family. Ask for their input about your presentation.

Local Real Estate Agent vs. Zillow

Local Real Estate Agent

• Personalized Service: Tailored recommendations based on individual needs and preferences.
• Local Market Expertise: In-depth knowledge of local trends, regulations, and nuances.
• Negotiation Skills: Ability to negotiate on behalf of clients to secure the best possible deal.
• Guidance and Support: Provides guidance throughout the entire buying or selling process.
• Professional Network: Access to a network of trusted professionals, such as mortgage lenders and home inspectors.
• Time-Saving Benefits: Handles tasks such as scheduling showings, negotiating, and managing paperwork.

Zillow

• Online Property Listings: Provides a vast database of properties for sale or rent.
• Property Value Estimates: Offers estimated property values based on data analysis.
• Mortgage Calculators: Allows users to calculate potential mortgage payments.
• Neighborhood Information: Provides basic information about neighborhoods, such as schools and amenities.
• Home Improvement Tools: Offers resources for home improvement projects.

Key Differences

• Personal Touch: A local real estate agent provides personalized service and guidance that is difficult to replicate online.
• Local Expertise: Agents have a deep understanding of the local market that is not available through online platforms.
• Negotiation: Agents can negotiate on a client’s behalf, leveraging their experience and local market knowledge.
• Time and Effort: Agents can save clients time and effort by handling various tasks throughout the buying or selling process.

Conclusion

Draw your own conclusion. Would you hire them or assume that they can use Zillow or another online listing company? Use this listing to hone your presentation. Use this example: Mr. & Mrs. Peterson were looking online at houses from one of the big firms that were not local to the area they were interested in. They were excited, they found a great house in what appeared to be a quiet neighborhood.

There was an empty lot next to the house on the map and no matter what they did, no information was available about that lot. They made an offer to buy the house directly through the website without an agent. After closing, they found a link to a local TV station website and saw the announcement that an amusement park was to be built on the empty lot.

Local agents like you, know the neighborhoods. You know when roadwork will start and finish. You know when the street lights will be fixed. The knowledge you possess is extremely valuable and it’s time you put a value on it. Communicate this value to your prospective client.

Please comment on this article and any other articles at this site. Take advantage of any training your MLS can provide along with assistance provided by your Broker.