Buyer’s agents have a critical responsibility to be the best they can be, new Inman contributor Filippo Incorvaia writes, as they navigate industry changes and the necessity of advocating for themselves early in the homebuying process.
May is Commission and Compensation Month here at Inman. We’ll sort through the noise and misinformation and provide you with the most up-to-date facts and strategies about how to prosper in the wake of the commission settlements. And look for straight-to-your inbox updates with Inman’s new weekly digest, Commission Chronicles.
Buyer’s agents are instrumental in helping clients navigate the complexities of purchasing a home or condo. In light of the NAR settlement, consumers in the market have never needed the expertise of an agent more.
With prices continuing to rise nationwide, interest rates stabilizing and an upcoming presidential election, buyers need to feel extra confident that they are not leaving money on the table if they are purchasing a home this year.
Remember to remind clients that achieving their homeownership dreams is absolutely possible right now and that you will stop at nothing to find them this property. Here’s how to bring more value to clients in the coming months by leveling up the service you provide.
Protect your time
The first step buyer’s agents must do is establish an agreement with their clients as the deals you are working on now could close after the NAR settlement goes into effect.
Protect yourself, your time, and hard work by advocating for your value immediately and educating clients on the changing industry guidelines. According to LendingTree, about 36 percent of homebuyers and sellers say they didn’t know they could negotiate a real estate agent’s commission.
Once you are under contract to represent your client and the source of your commission is established, conduct a comprehensive market analysis to identify areas with favorable pricing trends, high potential for appreciation and available inventory that aligns with your client’s budget and preferences.
Without granular detail, clients cannot make informed decisions that maximize their investment potential and ensure a fair value of the initial offer which could kill a deal before negotiations even start.
Improve negotiation skills
Next up is to refresh and hone your negotiation skills. Whether it’s determining the purchase price, closing costs or seller concessions, agents should be ready to advocate fiercely on behalf of their clients to secure the best possible deal.
Consumers without guidance can jeopardize a deal by asking for concessions in the wrong area of a transaction and killing the deal at any stage of the conversation. An experienced buyer’s agent will always have more information than a home buyer alone and can add further value by pinpointing when to ask for what.
Timing is just as key as the ask. Thousands of dollars can be saved by expertly timing asks within a negotiation.
Access to exclusive listings is where buyer’s agents can give their clients a significant advantage. Get creative and tap into your network, relationships with other agents, and industry connections to uncover off-market opportunities, including pocket listings and pre-market properties. These hidden gems often offer better value with less competition, allowing clients to secure favorable deals.
Build your network and get connected
You should be ready to recommend trusted service providers to your clients, including lenders, inspectors, and attorneys, a team with a solid working relationship already established keeps the process smooth and cost-effective. These professionals help home buyers get favorable terms, ultimately saving money in the long run.
Buyer’s agents should proactively identify cost-saving opportunities for their clients, such as properties in need of minor renovations or cosmetic updates, and weigh the pros and cons property-by-property as it pertains to ROI. These strategic evaluations can lead to a lower price and add upside through renovations.
Due diligence is essential to avoid costly surprises after closing. Buyer’s agents should guide their clients through the inspection process, recommending qualified inspectors to thoroughly assess the property for any potential issues. By identifying red flags early on, agents can help clients negotiate repairs or credits from the seller, saving them money and hassle in the long term.
The homebuying process can be overwhelming, especially for first-time buyers. Buyer’s agents provide continuous support and guidance to their clients, answering questions, addressing concerns and offering valuable insights every step of the way.
By being a trusted adviser, agents can help clients navigate the complexities of the real estate market while staying within their budget.
Buyer’s agents have a critical responsibility this year to be the best agents they can be amidst industry changes and the necessity of advocating for themselves early in the homebuying process. Go back to the basics, but go the extra mile.
Filippo Incorvaia is the CEO and broker-owner at FI Real Estate. Connect with him on Instagram.
