While for some the process of buying a home has gotten easier with the growth of the broker population and new tactics made possible by tech disruptors, it also has diluted the art of brokering a deal — particularly on the high end. Clients focused on selling or purchasing valuable properties and high-caliber assets are not being serviced by their brokers in effective ways. Brokers should concentrate on the client’s needs and offer the best possible solution, which means providing enhanced resources, enacting total transparency and having a deeply nuanced understanding of their client’s micro market.
Homeowners trying to sell properties priced under the $2 million to $5 million mark have faced the brunt of this ineffective practice. Sellers are still working with brokers who often prioritize their commission over servicing their clients. This creates a trickle-down effect that can ruin the homebuying or selling experience. It is a broker’s fundamental duty to serve their clients, not to prioritize their own success or boost their footing in their firm.
How can brokers help homeowners feel sure they’ve hired the right partner to market, sell or purchase a precious asset? Here are three things brokers should keep in mind:
Be An All-Encompassing Resource, Not Just An Independent Agent
Recently, the broker (independent agent) has become the modern-day ride-share driver of real estate. Brokers are simply driving prospective buyers from point A to point B and waiting for one property to stick. Sellers should be wary of the autopilot mode brokers can sometimes fall into, especially if a property has been on the market for an extended period of time. While this mentality can be credited to the traditional construct of the real estate industry and the internal competition it has created amongst independent agents, it has also negatively impacted buyers and sellers.
This disjointed, broker-first approach is extremely limited in providing the full scope necessary for clients based on its lack of design and focus. Your firm should be operated on a companywide model, which not only builds more of a team dynamic, but also creates a unique, tailored experience. At the end of the day, everything from marketing, systems, resources, communication and technology to the people you hire should be done solely to better the client experience.
Understanding Sentiment
Most brokers lack knowledge and expertise in sentimental value and how it influences a property purchase. Sentiment is the driving force behind real estate purchases, especially if a buyer is looking into purchasing a secondary home. For example, in the Alpha market, which refers to homes priced on the high end, buyers typically have more things to consider, whether it be additional taxes or fees. However, at this level, lower-value taxes aren’t going to make or break purchasing decisions or affect the market overall. Taking this into consideration, brokers need to know that each property has unique attributes that need to be addressed and communicated properly to both buyers and sellers.
Sentiment is the No. 1 qualifier when it comes to purchasing, and it’s up to the broker to find the right buyer where the property fits their needs, lifestyle and investment. Purchases are not made out of necessity, but an overall desire, and brokers need to understand this fact about their clients. If a broker is not keeping up with the ebbs and flows of their own micro market, they will not be able to properly service and counsel their clients.
The Advisor Versus The Key-Turner
The financial aspects can often become the sole focus for brokers, but viewing properties as price tags provides a huge disservice to clients and taints the experience. The market is competitive, not only for buyers, but also for brokers, thanks to advancing technology. Being able to market a property — and do so correctly by understanding all of its nuances — is just as important as research.
In my opinion, it’s important to act as an advisor to clients. At the high end, missing even the smallest attributes of a property could mean millions of dollars lost to your client. Brokers who are not educated about their markets often make hasty decisions that result in negative outcomes and, even worse, can cause dramatic fluctuations in the market. If the market is moving at a slower pace, I often see brokers react by making dramatic price reductions. While this isn’t the worst offense, it also isn’t the most educated and does not help your client. It is crucial to be a resource every step of the way, which means working diligently every day to find the right buyer.
Final Thoughts
The brokerage market has been shifting for some time now and shows no indication of stopping anytime soon. As the field continues to get more and more crowded with new firms and an increase in online tools, only brokerages that put their clients’ needs first will survive. Working to better each individual client’s experience, providing ample resources, understanding what forces are driving the market and sharing valuable knowledge with buyers and sellers are what sets a “real” broker apart from the pack.