In the latest RISMedia webinar—”Owning The Commission Conversation: Articulating Agent Value in a Post-Settlement Landscape”—panelists James Dwiggins, co-CEO of Rayse and CEO of NextHome; Michael Hickman, CEO of Seven Gables Real Estate; and Lisa Nguyen, team leader of The International Group with RE/MAX Professionals, talked about how in today’s shifting real estate landscape agents must be equipped to confidently communicate their value and navigate commission conversations with clients. The webinar was sponsored by Rayse and moderated by Joe Rand, chief creative officer at Howard Hanna | Rand Realty.
As consumer expectations evolve and industry changes take shape, the ability to effectively articulate expertise and justify commissions has never been more crucial. The panelists discussed the evolving real estate landscape, emphasizing the importance of transparency, articulating value and adapting to industry changes.
Dwiggins highlighted the need for agents to clearly demonstrate their work and value to clients, using tools like Rayse—which aims to help agents provide transparency and track activities. Hickman stressed the importance of owning the conversation with clients and adapting to new market conditions. Nguyen emphasized the significance of personal interaction and consistent communication with clients. The discussion also touched on the challenges of educating clients about the complexities of real estate transactions and the necessity for agents to stay informed and responsive to maintain their relevance and effectiveness in the industry.
Key takeaways:
Panelists offered top tips for how agents can conduct commission conversations and prove their value in a changing market:
James Dwiggins:
- Cooperative compensation is a massive risk, and the industry will need to move away from it due to litigation risks.
- Buyer agents need to be better at articulating their value, as the industry can no longer rely on the “seller pays the fee” mindset.
Michael Hickman:
- Agents need a solid structure for questioning clients to understand their needs and preferences.
- Communicating and collaborating with other agents is crucial, especially as compensation is no longer listed online.
Lisa Nguyen:
- In the current market, it must be explained to clients that homes are not selling as quickly and there are fewer multiple-offer situations.
- Agents need to be able to write concise offers, know negotiation tactics and communicate well with other agents.
Joe Rand:
- The industry has traditionally taught agents to downplay how difficult it is to buy or sell a home, when they should be more transparent.
- Listing presentations should be more of a consultation, with agents asking questions and listening to understand the client’s needs, rather than reciting scripts.
More of what our esteemed panelists had to say:
“Our industry has not had to explain our value to buyers because of the way the system was set up for the longest time. And so we are wholly unprepared now to explain what we do, and we’re scrambling to do this. If you go to any real estate website, it tells about the home-buying process, et cetera, but it doesn’t do a thing to explain what we actually do to help them buy a house. Same thing for listing agents. We don’t talk about the actual work that’s involved, the training we have to go through, why it’s important, what is fiduciary, what is statutory. All these things we just skip over, and it drives me nuts because we’re in a world where people are buying the most expensive thing they possibly can.” –James Dwiggins
“If we don’t own the conversation, you’ll be guaranteed somebody else will. If we can’t say why we’re worth it, and we can’t explain why representation isn’t free, that it’s not an expense, but rather, an investment, and if we can’t save them money and mitigate risk and provide expertise that buyers simply can’t replicate on their own, then we don’t deserve it. We’ve got to be able to handle those conversations. Getting deals done is not for the faint of heart. They’re not for people that don’t want to persevere. They’re not for people who simply open a door, meet the client for the first time, say good luck and walk through.” –Michael Hickman
“It’s not that buyers don’t want to have to pay us. There are a lot of buyers that simply can’t afford to. Number one, interest rates are too high. Property taxes have skyrocketed, adding onto their mortgage payment. And insurance costs have gone up. So buyers are being hit from every angle. Now we’re having to explain to them that they’re going to have to pay me, too. Some simply can’t afford it. So the way I bring value is by saying when we’re going to go in and make an offer and I’m going to try to negotiate my commission with the seller, ask them for the commission.” –Lisa Nguyen
For more information on how to prove your value in a changing market, check out the full webinar here.
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