As a real estate agent, it is important to know your value. “Your value” is determined by what you have to offer the consumer. It is important to remember that consumer perception is consumer reality. Every agent on the path of success must be able to answer the following question from a consumer’s point of view. (We all need to answer a version of this very basic question and answer it very, very well.) The question is: Why should a consumer work with you instead of another agent? Or, why should a client work exclusively with you, instead of having several agents search and show them homes? Or, why should a buyer express complete loyalty to you, instead of calling every listing agent in town? Your answer should compel the consumer to select you, and keep the consumer from moving on to one of the next agents.
Your value proposition is your personal thirty second ‘elevator speech’ answering the WHY question: Why should a home buyer pick you? This thirty second answer will prove to be helpful at an open house, a social gathering, answering a floor call, responding to an email, responding to a sign-call, meeting a ‘come-show-me’ request at one of your listings or the first time you meet any none-contracted buyer. Like all thirty second answers, your answer needs to be well thought out and planned.
Your value proposition planning begins with listing all of the services you provide to buyers. Your list may include: MLS access, automatic notification of new properties, market knowledge, negotiation strategies, process knowledge, one-stop-shopping and the list goes on and on. All of the services agents provide can be viewed as the ‘features’ agents provide to buyers. However, simply giving a potential buyer a list of features is over-whelming and full of jargon. This list has meaning to real estate agents, not to ‘Joe Consumer’. For an example: If an agent boasts that they have auto-notification, MLS access and top service, what appeal does that have to a potential buyer? What if agents, instead, convert their list of features to a list of how the consumer will benefit by choosing them. The same example would sound like this: I offer access to all homes currently for sale; I give immediate notification of all new homes to the market, and I will show you properties at your convenience. The second example gives the potential buyer the benefits of working with an agent and is consumer focused. From your initial list of services or features you provide, comes your list of benefits or your value proposition. Your value proposition will compel a potential buyer to pick you.
Here is the step-by-step process to building your value proposition:
Step #1 List all the services that you provide for buyers.
Step #2 Determine which three services do you do best.
Step #4 State how you provide the three services.
Step #5 Clearly identify what benefit your client gets from each of the three services.
Step #6 Write down the three benefits and practice verbalizing them until you are comfortable saying them.
Now that you have a value proposition, you may want to evaluate it. Will your value proposition be compelling enough for buyers to want to work with you? Is your value proposition giving the message you intended? Evaluate all three parts of your proposition by selecting the correct quadrant on the Johari Window. First, is the statement ‘client directed’ or ‘agent directed’? Second, is the statement a ‘consumer benefit’ or an ‘agent service/feature’? It looks like this the attached table.