In the new 2024 real estate climate, NAR has ruled that buyers are now responsible for compensating their Agents for Representation in a Real Estate transaction.
While this may add additional soft costs to the process and may even present itself as an affordability issue; one of the best ways to overcome this new expense is to educate buyers in your initial buyer presentation.
In this article, we will explore the purpose of buyer presentation and different ways to use it to Introduce Your Fee Schedule and Establish that Your services necessitate Professional Compensation.
What is The Purpose of Buyer Presentation?
For so long, agents have felt the pressures of being self-employed and therefore, having to justify their value.
However, the NAR ruling has changed the regulations surrounding “commissions.” Seller-paid commissions are no longer the standard way that realtors earn their living, but rather through contractual disclosure and agreement to Professional compensation.
Professional Compensation can include Commission on Sale of a property, a Flat Service Fee, a retainer, or any combination of the three.
For example, if your Broker has a Transaction Fee, you may want to include that as an additional compensation to your 3% commission fee.
Understanding that your services as a Buyer Representative require direct compensation from the buyer is a substantial shift in the ideology around Real Estate agent compensation and the reason you have to understand the purpose of buyer presentations in this process.
When you are able to discuss the Value of a Realtor’s representation when purchasing a home, you should be able to confidently present your Professional Compensation Fee Schedule as a Buyer’s Agent. Here’s how:
Value Proposition for Buyer Agents
Your Unique Value proposition is a statement of your position as a party in the Real Estate Transaction.
Your Value proposition is beyond your resume– it goes beyond your company history and mission statement, and even more effective than testimonials. Your Value Proposition proposes to the client that you are the best person to trust for the success of their real estate transaction and why you are a valuable and necessary resource when buying a home.
A Buyer’s Agent’s Role in the Home Buying Process is four-fold:
- To search, recommend, and coordinate showings.
- Help Clients arrange Financing for the Purchase
- Structure, Craft, and Negotiate Winning Offers without Overpaying
- Mitigate Risks to the Buyer in the Purchase of the Home: disclosures, inspections, negotiating for repairs
- Manage the Transaction through Closing
- Advice on Move-in Logistics, Upgrades, Renovations, and for investors, rental analysis
How a Buyer Presentation Can Justify Your Commission
Consider ways you can utilize your buyer’s presentation templates to highlight how these areas of value require your potential client to Hire a Buyer’s agent to conduct business in the Homebuying process and thereby, you will inherently justify your Professional Compensation.
There isn’t any denying that today is a fast-paced digital age. Using a modern, digital, interactive Buyer presentation software is an essential digital tool to introduce and support your business expertise and professionalism.
Yet, you still must build confidence and trust in your services through your personal rapport with each client.
Winning Over the Buyer with a Strong Presentation
Much like a pre-listing package to potential sellers, Buyers will connect with you through the buyer presentation you send in advance of your first meeting. You want to include the most valuable information that will establish a solid foundation for your first impression.
Your Buyer Presentation should be used to present evidence of your Professionalism and Trustworthiness.
Such Evidence may include:
- Company History,
- Your Resume and Designations,
- Client Testimonials,
- the Home Buyer Process,
- the Lending Process,
- Trusted Partners and Team Members,
- Your Unique Value Proposition,
- Services Outlined,
- Value-Added Services (if any),
- and/ or Sample Forms.
Buyer’s Presentation can be introduced in several ways– in an appointment confirmation email, as a link in your Business Signature, or as a page on your Website that Buyers can review independently.
If you prefer to meet your clients in the office or do Homebuyer workshops, a First-time Homebuyer Presentation is an excellent opportunity to do an executive presentation of your Buyer Guide in a formal setting.
If you usually meet buyers for the first time during a showing, your buyer presentation could be a touch before the initial showing, while you also prepare to hand-deliver a printed version of the buyer’s presentation in a folder with in-house resources during the showing appointment.
Fashion your buyer presentation in the way that best suits your niche client, as well as your business standard operating procedures and professional style. What is most important is that when you meet with a client, you can always articulate the value proposition in your buyer’s presentation and answer questions about Professional Compensation clearly.
Presume the Sale
Once you have completed your Initial Buyer Presentation meeting, presume the sale. Then, close out with your next steps.
“After this meeting, I am going to send you my Buyer Brokerage Agreement. The Buyer Representation Agreement (or Buyer Brokerage Agreement) details our Services, includes our Fee Schedule, introduces our partner services such as our in-house lender, insurance, and our title company which are all necessary services in the homebuying process, as well as all State-required Disclosures about your Rights and Protections in Purchasing Real Property.”
This close succinctly educates your client that being represented by a Realtor is a state-affirmed profession to help them navigate the real estate transaction and have their interests protected during the Homebuying process. This close also reveals that Your Service is an entry into other enveloped resources that your Broker offers and implies that there will be professional compensation fee schedule for your work.
Using Highnote.io for Buyer Presentations that Win Clients, Close Deals, and Get you Paid
A stunning, well-crafted, comprehensive digital Buyers Presentation positions you as an expert and as a necessity in the real estate transaction by addressing your Unique Value as a Professional Real Estate Agent.
It’s a best practice to use your buyer presentation to instill confidence, which is an impressive first step to aid you in closing the buyer client. Creating a Buyers Presentation is a key tool in your arsenal to win more clients and qualify your Professional Compensation.
Try using Highnote.io Presentation software to create your own professional Buyers Presentation and Win over Buyer Clients.
Frequently Asked Questions
How do I prepare for a listing appointment?
If you plan to present in person to Buyer, it’s best to deliver your presentation 20 minutes or less so that you can create relationships, answer questions, and provide resources for next steps.
How should I build out my buyer presentation?
Depending on whether you’re with a large brokerage, or working as an independent agent, your buyer presentation is an introduction to your business. It offers a way to demonstrate professional competency to manage client expectations. Organize your Buyer presentation in a step-by-step fashion that builds trust and answers questions in a logical order.
Should I discuss Professional Compensation in my buyer presentation or in my brokerage agreement?
If you plan to walk buyers through the homebuying process within your presentation, you may want to mention the soft costs it takes to purchase a home, such as inspection fees, and appraisal fees. Also be sure to mention that there are down payment costs, lender fees, transfer tax, and more due on the day of closing.
Be honest and upfront about the new NAR rules which include the costs of Buyer’s agent compensation and be prepared to answer questions about the professional techniques you employ to overcome some of the upfront closing costs involved in a real estate transaction.
It is best to introduce this conversation before the Buyer Brokerage (Hiring) agreement.
