Real estate pros: Explain the value of buyer rep without sounding like a script

To guide the conversation, start with what’s changed

Buyers have likely heard about the NAR settlement and the new real estate rules, but they probably don’t fully understand them. Since purchasing a home is one of the biggest financial and emotional decisions most people will ever make, it’s important that you help homebuyers understand how the new rules may affect them and what your role is in representing their interests. To start, break it down simply:

1. Written agreements are required.
Buyers must clearly understand that, before you show them any homes, they will have to sign a buyer agency agreement. Explain that this agreement simply clarifies your role as their advocate and spells out your responsibilities, as well as how you get paid.

2. Compensation is no longer assumed.
Let buyers know that while sellers often still cover the buyer’s agent fee, it’s not guaranteed. Your agreement will spell out exactly how compensation is handled, so there’s no guesswork for them.

3. Transparency is the new standard.
Transparency is always a good thing, so position this as a positive. Buyers now know up front what services you provide and how you’re compensated. This new standard lines up with the way attorneys, financial advisors, and other professional service providershandle communicating their compensation.

Taking time to break down and explain the new rules shows the buyer your commitment to acting in their best interest throughout this process. Knowing that you are there to guide them, they are more likely to feel comfortable with each stage of the transaction.

Explain what you actually do

Some buyers may think agents just unlock doors or send listings. As real estate agents, we know there is so much more to what we provide. Show them the bigger picture by highlighting your role as their:

• Guide: Identifying homes that fit their needs, many of which they can’t easily find online.

• Analyst: Providing market insights, which help determine what a home is worth, so they don’t overpay.

• Negotiator: Crafting offers and counteroffers to help them get the best price and fight for their best interest

• Protector: Ensuring contracts, inspections, and deadlines are handled correctly.

• Problem-solver: Keeping the deal on track when issues arise.

By explaining the bigger picture and how broad your role is as their advocate, you make your buyer understand that you’re not just helping them find a home; you’re helping them secure it on the best possible terms. Having this conversation early reduces the chance that there will be surprises or misunderstandings about your representation. This transparency paves the way for a more positive experience.

Address the cost concern head-on

This is where buyers often hesitate, so be proactive. While the new rules say a buyer’s agent needs to have a written agreement, and that agreement says how they’ll get paid, that doesn’t necessarily mean the buyer has to write a check for thousands of dollars out of pocket. By clearly explaining the alternatives to your buyer, you help them understand that the cost is not as overwhelming as they may have assumed.

Clearly explain the options for payment of the commission:

• Many times, the seller still offers to cover the buyer’s agent fee. Tell your buyer, if that’s the case, nothing changes for them, and they won’t pay out of pocket.

• If the seller doesn’t offer to cover the fee, the fee can often be structured into the deal. Use simple examples (e.g., rolling the fee into the purchase price and mortgage) so buyers see it’s manageable.

However the commission is handled, your value outweighs the fee the buyers may pay. You can help them better understand the value you bring by explaining the potential risks of going without representation, such as overpaying, losing deposits, or missing critical contract terms. The key is to show your buyers they aren’t adding cost by hiring you; they’re protecting themselves from potentially greater losses.

Show why going it alone is risky

Buyers may think they’ll “save money” without an agent. Most buyers are counting every dollar when it comes to what they can afford, or are willing to spend, to buy a home. Help them see the pitfalls of not using a real estate professional to represent them:

1. Many times, the listing agent works for the seller, so their loyalty and fiduciary duty is only to the seller. That agent will be working hard to make sure the seller gets top dollar from the buyer, so the buyer needs you on their side. 

2. Negotiating solo is like stepping into a boxing ring with a trained fighter. Your buyer may land a punch, but the professional agent knows how to wear them down and win.

3. One legal mistake can cost thousands of dollars, whether it’s a lost deposit, or being forced into a deal the buyer can’t afford. You are their insurance policy that no money is left on the table and that they don’t pay for unnecessary mistakes. 

4. Time and stress are real costs. No one likes to wonder, “What do I do next?” Your representation makes sure that won’t happen and frees your buyer to focus on other things. 

When all is said and done, your job is to level the playing field and protect the buyer’s interests.While this will likely save them more money than what they pay in fees, it will also save them valuable time navigating the process by themselves. 

Help them choose you with confidence

The University of Southern California posted a study from the American Marketing Association, which posits that consumers crave authenticity so much that this concept is now one of the cornerstones of all marketing efforts. That’s why being authentic and understanding your clients’ needs is so vital.

Buyers may interview multiple agents, so a positive first impression is key to helping the buyer understand the value of choosing you to represent them. Position yourself as the professional who:

• Has strong experience representing buyers.
• Knows the local market inside and out.
• Communicates clearly and responsively.
• Provides full transparency about agreements and fees.

Always be authentic in your conversations, as well as clear and up front in your explanations, because buyers are looking for trust as much as expertise. Buyers want an expert, but they also want someone who takes the time to make sure they understand each step of the transaction. The more comfortable they are with the information you provide them, the more likely they are to feel positively about the experience of working with you. 

Your bottom-line message to buyers

With the new rules in place, your role as a buyer’s agent is more important than ever. Remind buyers that by hiring you, they’re gaining an advocate who protects their interests, saves them money, and guides them through one of the most significant purchases of their lives. Drive the point home by making it clear: the potential cost of going without representation could be greater than any fee they may pay.

Darryl Davis, CSP, has spoken to, trained, and coached more than 600,000 real estate professionals around the globe. He is a bestselling author for McGraw-Hill Publishing, and his book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for most sold book to real estate agents.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

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