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When things get crazy, simplify. That’s Keith Robinson’s advice for getting prepared to do buyer consultations in the brave new post-commission lawsuit world.
For any agent who’s feeling nervous about how they’ll talk to homebuyers after Aug. 17 about the services they’ll provide and what they’ll charge, Robinson’s 20-minute presentation at Inman Connect Las Vegas could be just the ticket to feeling more at ease.
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“How many of you have had at least one freak out about your buyer consultation in the last six months?” Robinson, chief strategy officer for NextHome, asked a room full of brokers and agents Tuesday. “Of course you’re having a little freak out about the buyer consultation. It’s going to mean more than it ever has.”
Robinson then proceeded to boil the problem down to three simple bullet points — build rapport, show your value and explain what you’ll charge — and put them in a context that most agents are familiar with.
“I have a perfect comparison for how your buyer consultation should look in the future,” Robinson said. “It should look a whole lot like your listing presentation.”
Building rapport
To build rapport, have the client share their dreams and visions, and ask lots of questions. If the buyer says they want a big lot, ask what a big lot means to them.
“What are you doing on listing presentation?” Robinson said. “You show up, build rapport. You do the weird walk around where you like, kind of neg the house, but not really, because you’re just trying to get in relationship, right? Then you tell them how wonderful you are, all the crazy things you do, and then you ask them for a bunch of money and fight over price. That’s a listing presentation, right? Your buyer consultation will feel very similar.”
That’s not to say it won’t take some work to get the details right. Robinson recommends agents print out a copy of the buyer’s representation agreement they expect to use and start practicing their pitch.
“Do not practice with a real estate agent friend — they’re assholes,” he joked. “I mean, they’re not really, but what they’ll do is give you all the things they’re petrified of someone asking them, like the hardest of the hardest questions. Find your best, most favorite client, and ask them if you could workshop some changes to your business.”
Showing your value
After building rapport, agents should move on to the most important part of a buyer consultation: showing their value.
Robinson recommends offering several tiers of service — a “discount” offering for experienced buyers who need less handholding; a “premier” level (all the things you usually do), and a “platinum” level that includes lots of extras (for a price).
“I’ll give you 90 days of storage. I’ll give you 90 days of a housekeeper. I’ll give you 90 days of landscaping three weeks after the close,” Robinson said, brainstorming platinum-level services. “I’ll give you 4 hours with a handyman.
“It’s going to come to the house — because there’s always a little thing that you didn’t notice in the four hours you spent inside the house before you made the biggest financial decision of your life — all of these cost money. I’m gonna margin those. I’m gonna offer them as a service and increase what I charge and add profit on top.”
It’s important for homebuyers to understand what they’re getting for their money because otherwise they’ll be focused solely on negotiating a lower commission.
“If you get nothing else from my 20 minutes up here, get this: In the absence of value, price is the only consideration,” Robinson said.
Recommended books on negotiating
When it comes to negotiating, Robinson shared three favorite books:
- Getting to yes: Negotiating an agreement without giving in by Roger Fisher and William Ury
- The art of negotiation: How to get what you want (every time) by Tim Castle, and
- Never split the difference: Negotiating as if your life depended on it by Chris Voss
Explaining your commission
While agents aren’t used to negotiating commissions with buyers, there’s no reason they can’t draw on their experience working with sellers.
“You’ve shown them all you do, then it makes sense to talk about what and how you get paid — just like a listing presentation,” Robinson said. “How many of you have a listing presentation and you freak out and lose your minds? No, you do them all the time. You’re not like, ‘Oh, I hope they don’t bring up price,’ because you bring up price every damn time. You’re not like, ‘Maybe I can just slide through on how much I’m going to get paid.’ No, it comes up every time! Soon enough, that will be your buyer consultation.”
Real estate agents and brokers have always needed negotiation skills, and they’ll be even more important on Aug. 17.
“If you can hit the ground running when these changes come, you’ll have a competitive advantage against your peers,” Robinson promised.
