It’s hard to imagine that there are many potential homebuyers totally unfamiliar with all the legal drama and court case machinations that have beset the residential real estate industry over the past few years. The Burnett case, in particular, has unfortunately and unfairly cast buyer agents in a less-than-flattering light.
With buyer agent commissions having come under the most scrutiny, it is more vital than ever for REALTORS® to make sure new clients understand that their value has not diminished in any way. How much money they receive for services rendered and who pays it may be changing, but not the longstanding importance they have played and will continue to play in the long and winding process of purchasing a home.
“It’s critical that new or prospective clients understand our value and how advantageous it is to have representation in their property search and during the transaction/negotiation following the very first meeting,” says Leslie Singer, an associate broker with Brown Harris Stevens in New York City. “Real estate professionals are specialists akin to any other industry. As one would hire an architect to design a home, or an attorney for trust and estate planning, you want to have someone with in-depth knowledge to help you navigate and protect your asset.
“Not only do we have the ability to examine listings at a deeper level using analytics and off-market insight, but we also have information that you can’t acquire via public sites like StreetEasy. We do the legwork to avoid time and money lost on the buyer’s part. Negotiations can get emotional; sadly, without proper representation, you can give up more than you want. Relationships allow us to learn what is truly important to the seller, which might not just be the price.
“It’s a similar mindset when applying for a co-op to a board in New York City. Only brokers with historical knowledge of what the board is looking for and have already approved in the past can guide you to success.”
One of the more attractive aspects for real estate professionals is that they can decide for themselves what works best for them. Whether their choices work will be proven out by the numbers on their 1099 forms at the end of each year.
Randy Dyck refers to himself on his website as a “30-year real estate maestro, spearheading one of Canada’s most triumphant real estate teams, achieving an astonishing average of 250-plus transactions annually.” He insists that agents everywhere need to focus on only one thing when it comes to new clients: establishing trust.
“Agents forever have been trying to win clients over with value-add items…reports, gifts of all shapes and sizes,” he says. “All of this is serving the agent and the agent’s agenda. Agents are so busy explaining their value. This is really the kiss of death. If you need to explain, there is no report or gift that will make you the chosen agent. You are the chump.
“The chosen agent leaves the client with the value of trust. That is the real value. The key to building trust is when the agent lets go of the outcome, and basically stops convincing the client of the agent’s value. The client leaves feeling truly understood and thinks that the agent sees the world through their eyes.
“Yes, a report, a gift, and most importantly, something to remember the agent is beneficial. But it is secondary. First and foremost it is about giving them the confidence that you are the right agent because you made them feel understood.”
Dan Burgeson, team lead of Exsell Realty brokered by eXp, had these two points that he makes sure to make to client hopefuls.
“I make sure they understand how a home is built and operates, as well as what items to look for while touring a property,” he says. “Then also understanding the competitive nature of the market they’re in and how to put themselves in a winning position.”
Jeffrey Decatur, a longtime broker associate with RE/MAX Capital in Latham, New York, makes sure to listen more than talk after initially providing new homebuyer hopefuls a step-by-step for what to expect on the home-buying journey.
“I do a presentation to manage expectations and educate them on the process, during which I give them a new buyer’s package,” he says. “In it I have a resume, testimonials, some franchise propaganda, a guide, lists of mortgage professionals, a questionnaire and a set of future paperwork, including agency and fair housing as required by law.
“I go over the whole process from beginning to end, find out their wants and needs, then do an MLS search with them and show the number of homes available within their criteria. I show them that the local MLS is the source of information all the public portals upload from, and how much faster and more accurate the true source is. After our meeting, they usually know what to expect, and feel confident, prepared and excited.”
Charlie Kerr, with RE/MAX Heritage Properties in Chester, New Jersey, makes sure newbies know there will be no rush.
“I emphasize that I will work with them at a pace that they are comfortable with and will never be a ‘pushy’ salesperson. I make it clear to my buyers that the purchase of a home is a big decision and can be stressful at times, and that I will always be aggressive for them, but not with them.”
At the end of the day, it may not all be rocket science, but it’s certainly real estate science when the matter at hand is making sure a first-time conversation turns into a signed buyer agent contract.
Elizabeth Altobelli, a luxury property specialist with William Raveis in Connecticut, says it’s simple.
“I want them to know first and foremost that I’m their advocate working on their behalf,” she says. “Talented buyer agents work tirelessly to get deals over the finish line. The real estate market of 2024 is highly competitive and tricky, and the knowledge of an agent takes you much further than you could go alone.”
