Real Estate Value Proposition in 3 Steps
Do you know your real estate value proposition?
If you don’t, or you’re not sure, this post will provide you with the necessary tips to bring your value proposition to life, and energize your business.
REAL ESTATE VALUE PROPOSITION DEFINED
Simply put, a real estate value proposition is a statement that helps prospective clients understand the “value” a real estate agent brings to the business relationship. It sets you apart from the other agents in your area. Most importantly, it helps assure the homeowner that you’re the right person to trust with their life’s most important financial decision.
There are essentially two primary benefits of having a clearly-articulated value proposition:
- To reiterate the previous point, a value proposition establishes your credibility vis-a-vis the many other agents in your MLS. It provides a platform for you to make a personal connection with the prospect, a connection that helps to build trust moving forward.
- A value proposition helps to build your network of clients and, as a critical extension, your opportunity for more referrals. Assuming that most of your competitors do not have a value proposition statement, you will stand out by having one of your own (perhaps printed on the back of your business card?)
But it’s worth noting that many agents who try to define their real estate value proposition falls short because they commit any or a combination of these three deadly sins of sales messaging:
- Providing too much information… you don’t need to over-sell yourself with a value proposition statement. Be concise and clear.
- Not describing value from the buyer’s perspective… we always need to remind ourselves that value is in the eyes of the buyer and that we are not in the sales business but the service business.
- Failing to identify what’s different about them… don’t be generic, but specific. Instead of saying “I pride myself in excellent communication,” you might say: “My policy is to return calls within X hours.”
If you haven’t considered your value proposition lately (or ever), here are a few tips to get you started:
1. EMBRACE WHAT MAKES YOU DIFFERENT
What, if anything, do you do to differentiate yourself from the next agent who might be prospecting as aggressively as you? Many top performers invest in offerings that will set them apart. Examples include:
- Offering high-end, professional photography.
- Employing technology to differentiate yourself, such as using unique virtual tour applications.
- Are you willing to pay for pre-inspection expenses?
- What staging expertise are able to offer?
- Is there anything you can do to pre-approve a loan?
2. IMPRESSIONS MATTER
You’ve probably heard the old axiom: you never get a second chance to make a first impression. Sales, and especially real estate sales, is driven by making good first impressions, whether on the phone or in person. Whether on Zoom or on your first face-to-face meeting with a prospect, you will be judged by how you look and present yourself. Regarding your attire, take the approach of “over-dressing” because you always want to look better than your prospect. Invest in high-quality leave-behind materials. If you’re not tech-savvy, hire a graphic designer who can make your story pop! Never, ever be late for an appointment. Use the philosophy that on time means ten minutes before your meeting. Smile and project confidence.
3. ESTABLISH YOUR AUTHORITY
Your prospect needs to feel comfortable that they can trust you with their listing. That’s why you need to show them that you are an authority, the right person for the job. Here are a few thoughts on projecting authority:
- Reinforcing what we said above, look like an authority when you walk through the door, in your attire, grooming, posture and, above all attitude.
- Know your scripts thoroughly. In particular, ensure you are well-versed in handling the objections that will come your way.
- Know the neighborhood, inside and out. Try to uncover nuggets that others might miss and will set you apart.
- Come equipped with a well-defined pricing strategy driven by your professional, experienced interpretation of current market dynamics.
- Always be listening; understand your prospect’s needs, concerns and fears. A good rule-of-thumb a talking to listening ratio is 30%/70%.
Give some time to reflect on the qualities that differentiate you from the other agents in your area. Clarity as to your value proposition will yield more listings and also translate to more referrals from satisfied clients.