It’s a fact. Buyer-side commissions are no longer a guarantee or entitlement. You can’t just assume you’ll be receiving X% on every transaction. Though this seems like a whole new stress-inducing worry for many of you, the fact is that commissions have never been a set amount, just an expectation or a tradition in many markets.
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Builders don’t all pay the same buyer-side commissions, and some don’t pay ANY buyer-side commissions. For Sale By Owners are the same. It’s time to prove your worth on the buyer’s side because now you may have to ask your buyers to pay all or some of your fees.
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As of July 1st, obtaining the buyer agreement is no longer an option but a requirement. You must prove your worth before you ask for the buyer’s commitment to you!
This brings us to your burning question: How do you provide overwhelming VALUE to your buyer clients? How can you become more comfortable asking for an exclusive buyer agreement and solidify the expectation that you will be paid for your hard work?
Your immediate focus must be to upgrade how you’re doing business with your buyers. If you’re looking for a ‘North Star’ to guide you, here it is:
Articulate your value in specific, transparent terms that show overwhelming value to your prospects, who will become loyal clients.
In other words, what is your ‘USP’—your unique selling proposition? What makes you different?
Why should a buyer hire you (and agree to pay your fee potentially) versus:
a) going directly to the listing agent
b) trying to work with multiple agents (especially given the limited inventory issue)
c) go directly to a new build salesperson, convinced they don’t need you
d) try to negotiate on their own with a For Sale By Owner
e) get licensed themselves
f) hiring an attorney to write up their offer
Your buyer presentation will accomplish the following:
-Focus on what’s most important to them and how you’ll deliver on those needs
-Explain the buying process
-Discuss what they can expect from you and what you’ll expect from them
-Include a risk-reversal feature such as a ‘home buyer guarantee’ or an ‘easy exit’ from the buyer agreement if they’re unhappy.
Top 5 Ways to Provide Overwhelming Value to Buyer Clients
Fact: If you’re not doing anything for them that they can’t do on their own, why would they hire you in the first place, much less pay your fee? Setting them up on a search isn’t enough! The press has a talking point that goes like this: ‘You’ve got Zillow too. What’s the big deal about finding a house?’
Goal: Provide such overwhelming value that you’re all they talk about to their friends. Could you provide such value that getting the agreement signed is no problem? Yes, you can, but only when you follow a process, use a proven presentation, and ask for their commitment. The definition of ‘close’ is ‘the logical ending to a great presentation’.
1. PRESENT to your buyer clients as professionally as you do a listing client. You can use our Buyer Presentation, where you outline exactly what the buying process is, what your role is, what the buyer’s role is, and how you’ll work together to accomplish their goals.
All professionals use a contract. You can’t even get a filling at the dentist without signing an agreement! Don’t be ‘weird’ about being professional. If you act like it’s strange, you’ll create doubt in their mind, and they won’t be comfortable committing to you.
2. Solve the Inventory Problem. FIND them their dream home. One of the top concerns for buyers and agents right now is the historic lack of inventory. It’s YOUR job, not theirs, to find the right home for their needs. Stop waiting for them to send you a link to the house they want to see next. Drill down on their needs, get out there, and find it!
–Be more creative in your MLS searches. Change the search area, change the TYPE of home, or find an equally great school district with more inventory. Remove square footage as a requirement; look for a three-bedroom with a loft instead of only four bedrooms, for example. Find new construction options as well.
-Refer to our podcast series about finding inventory that is NOT in your MLS and our podcasts about new construction. Premier Coaching provides a deep dive into both.
3. KNOW and PRESENT solutions to get a better-than-average mortgage interest rate. You don’t have to know as much as your competent mortgage lender does, but you should be able to competently discuss 2-1 Buy Downs, Adjustable Rates, and how to pay points to lock in a lower rate on a 30-year fixed mortgage. Could you loop in your lender and have coffee with your buyer clients to discuss loan options that meet their goals?
4. Be a matchmaker. You must be more proactive than your buyer is. If they’re dying to be in just one specific neighborhood, doorknock that neighborhood so you uncover the next motivated seller. If they are in a new construction price range but haven’t considered it, take a video of a home that could match them and see their thoughts. If there’s a For Sale By Owner in their desired neighborhood and price range, talk to that seller, take a video, and set up a showing (before your buyer does that without you!). Be more proactive than your buyers are.
5. Provide additional value by being one step ahead once they’re pending. Practice ‘over-communication’. Manage the inspection process so they don’t freak out over small items, set up their utilities, recommend movers, homeowner’s insurance, and anything else to alleviate stress. Show your value by making the process more enjoyable than stressful and confusing. Always be one or two steps ahead and communicate daily.
Need more training on this? Join Premier Coaching today to get the Buyer’s Presentation, Buyer Prequalification Scripts, and the Buyer Mastery coaching you’ll need to thrive in this new market. Don’t wait until it’s too late to polish your buyer skills!
