When we look at our complete value and the process of representing buyers' interests, the service of a professional real estate agent carries a high level of value. If you can quantify the value the client receives, you can sell your services more effectively and easily. At Real Estate Champions, we have been able to chart out the value of the services that buyers receive for most real estate agents. We have charted this out in terms of percentage of sales price.
Buyer Services and Value
Process Knowledge / Counsel --- 1/2 %
Market Knowledge -- 1/2 %
Needs Assessment -- 1/2 %
Selection Assistance -- 1/2 %
Correct Contract Writing -- 1 %
Presenting Favorably -- 1 - 2 %
Negotiation / Representation -- 1 - 2 %
Financing Assistance -- 1 %
Closing Processing -- 1 %
Follow-Up Communication -- 1%
TOTAL -- 7 - 9%
"You will receive easily 7% to 9% of the sales price in valuable service from me. The best part is you receive all this, and it costs you really nothing. Isn't that great?
The seller actually pays the fee through the transaction costs. All the services that you receive from me are covered through the transaction. So you get someone with knowledge, assessment skill, selection assistance, proper contract preparation, presenting and negotiating, financial counsel, management and orchestration and after sale service for free!! The only thing I ask is for is an exchange of your commitment, which we will talk about in a few minutes. Okay? Does this sound like the services you are looking for? Does what we have gone over thus far make sense? Do you have any questions?”
While most agents' conversations center on the home the client wants to buy, the Champion Agent doesn't talk about that subject until after this stage of the presentation or later. Once enough value and differential for you and your services has been established, you have two options: continue down the agenda to completion or work to close them right now on the Buyer's Agency Contract.
I have many clients who, after they have built the value for their services, discuss the exchange of commitments necessary for them to continue working with this prospect. Either approach is correct, based on the current prospect and your individual style of sales. But you must establish yourself and your value to the buyer first.