An Agent’s Most Valuable Tool: Understanding, Building, and Delivering Your Value Proposition
The value a real estate agent provides their clients has always determined how well their business runs. But now more than ever, agents are being asked to prove their value in order to build steady businesses in the face of the most recent industry shift. Increasingly, conversations about value will be front and center in discussions of buyer representation agreements and compensation. How well you conduct these conversations, and how well you deliver on your commitments, will determine how much business you can do, how much money you can make, and how solid your reputation can be as an agent.
Your value proposition is the way you convey what you do for your clients. As an agent, your value may be so obvious in your own head that you forget to tell your clients. Remind them that your value is the net sum of the services you offer, the standards you hold yourself to, and the professionalism with which you deliver your services throughout real estate transactions.
Understanding what a value proposition is and building one that is true to yourself and your business is incredibly important for agents at any stage, whether you are just beginning or have been in the industry for years. We’re going to go over what exactly a value proposition is so you can build one that speaks to the high level of services you deliver to your clients, and then allows you to meet and exceed the expectations you set in each transaction.
Understand Value Proposition
Your value proposition explains the unique benefits a customer gets from choosing to work with a particular brand, vendor, or in your case, real estate agent. It’s what drives clients to work with you over any of your competitors. Your value proposition should be easy to communicate to your clients because it is reflected in what you do.
Your value proposition is also innately connected to the cost of your services. When you explain your value, clients understand that working with you is an investment rather than an expense.
To get specific, there are four components of a strong value proposition:
- It is a unique, memorable, and persuasive statement that expresses the true value of working with you.
- It addresses the specific and special needs of the buyers and sellers in your market.
- It states what you will do for your client to earn your commission.
- It holds you accountable to high standards.
With these four things in mind, you can work on building a value proposition that expresses your value and expertise, protects your commission, and builds strong and trusting relationships.
Write Your Value Proposition
Every business has a value proposition – and they’re not just catchy jingles or marketing slogans. You may “save big money at MenardsÒ,” but their value proposition is that you will be able to find all your home improvement needs at a lower price than their competitors.
There are a few things to consider when writing your value proposition. First, value propositions should be written in client-centric language. They speak directly to the people you aim to serve. Second, effective value propositions pose a challenge and solution. They solve a problem for your clients. Finally, they explain either directly or indirectly through implication why you are different than the competition.
Making sure your value proposition checks these boxes will allow your potential clients to see how working with you can make their real estate experience better. It will show them what they are paying for and let you earn their trust when you follow through on the services you promised to deliver.
To help enhance your value proposition, consider the following questions when building yours out.
- How does your value proposition relate to serving as a fiduciary?
According to Investopedia, a fiduciary is “a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust.” As a real estate agent, being a fiduciary means you are both legally and ethically bound to your clients’ best interests. This way, your services are an investment for clients—not a frustrating cost.
Your value proposition should showcase how you will act as a fiduciary. Maybe it’s through your list of the best lenders, inspectors, financial advisors, electricians, plumbers, and the like. However you want to illustrate that you put your client first, make sure that it shows up in your value proposition.
- How does being a market expert add to your value proposition?
Real estate knowledge is the foundation of any good value proposition. A great agent is trusted by their clients to be the market expert and to know the market of the moment. You know what’s going on in the neighborhood, in the city, and on a national level at all times.
Having an extra edge on your market and knowing all the details can give your value proposition more spark. People want to work with someone who truly knows their stuff, especially when it comes to the biggest purchase of someone’s life.
- What other knowledge, skills, and beliefs do you possess that may help you stand out?
You need to make sure your proposition is special and specific to the value you offer and the services you provide. It’s what sets you apart from all the other agents in your market. Think about what you bring to the table and what makes you, you. Are you bilingual? Have you lived in the area you serve all your life? Are you an Agent of Distinction? Don’t leave these specialties out of your value proposition.
Deliver Your Value Proposition
People will remember their experience with you if it’s a good one, but you’ll also stand out in their memory if you fall short of expectations. So, once you’ve created and marketed a value proposition that fits your business, it’s time to deliver on your promises. You can talk the talk all you want, but you have to walk the walk if you want your value proposition to truly influence your business.
When you set expectations and follow through, you build trust with your clients and create a reputation as an agent people find helpful and enjoyable to work with. Agents all aim to eventually work in a repeat and referral-based business. The best way to do this is to deliver on your value proposition and keep in touch with your clients using your database. If you do these two things, nothing can stop you from building the business of your dreams.
What makes your value proposition unique? Let us know on our Facebook page. And don’t forget to subscribe to our newsletter.