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This post was updated Jul. 31, 2024.
We’ve all heard listings are the key to success in this business, but listings are only one side to the transaction. Every successful transaction involves the buyer’s side and in most cases an agent working with the buyer.
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There is a significant difference between average buyer’s agents and exceptional buyer’s agents. Here are the differences, and the 11 things great buyer’s agents know before they ever show property.
1. They know the value of a buyer
Great buyer’s agents understand the buyer has more value than just the one transaction. They understand that a happy buyer sends referrals. They also understand a closed buyer transaction creates a marketable event that can lead to other buyer referrals.
The old saying “birds of a feather flock together” absolutely applies to buyers. The great buyer’s agents understand that if they provide world-class service to their current buyer, odds are they will be able to attract or receive referrals for other buyers just like them.
2. They know whether this buyer is working with another agent
One of the biggest mistakes real estate agents make when working with buyers is not knowing whether they are already working with another agent. Most agents have learned this lesson the hard way and found themselves finding the ideal home for a buyer only to realize right before writing an offer that the buyer has a friend in the business that they will be using as their agent.
The great agents ask if the buyers are working with another agent early to save unneeded time, effort and frustration. This question will become even more valuable as we head into a post-NAR settlement era where a buyer’s broker agreement will be required for a buyer to see a home listed in the MLS.
3. They know what the buyers can afford through pre-approval for a mortgage
Another mistake most agents make is not knowing how much the buyers qualify for before showing homes. The best agents understand the pre-approval process is not just to make sure the buyers can buy, but also to make sure the buyers see homes that are in a price range that is doable for them.
Early in my career I made the mistake of assuming a buyer could afford a certain price range only to find out they qualified for homes that were $75,000 less than the ones I showed them. The buyers never could get satisfied with a home in the price range they qualified for after seeing the higher priced ones. This is a mistake I learned from and never repeated.
The best agents don’t show property until their prospective buyers have been pre-approved for a loan.
4. They know what the buyer wants and needs
Great buyer’s agents understand how valuable their time and the buyer’s time is. They ask questions to understand what the motivating factors are for the buyers. They ask them if there is a specific time deadline when they need to be in the home. They ask them where they will be spending most of their time outside their home to uncover if there are amenities, schools or offices they need their home to be near.
By understanding the buyer’s wants and needs, they can provide them with the homes for sale that best fit their desires and make sure their wants/needs are met.
5. They know and can communicate the local market trends
Great buyer’s agents understand and can easily communicate the current local market trends to the prospective buyers in a way that they can understand how they will affect their buying process. This process of educating them on the local trends provides insights that shape the buyer’s expectations.
If there is limited inventory, the great agents provide the buyers with an understanding of how that might affect their need to move quickly and offer above asking price when they find the right home for them in order to win in potential multiple-offer situations.
If the days on market are growing and the average list-to-sale price is moving towards 95 percent, then the agent will educate them on how this might affect their ability to negotiate price in a manner that is reflective of these market trends. Although each home and each negotiation are different, understanding the trends is knowledge that can bring value to the buyer.
6. They know and can communicate specific neighborhood market trends
Occasionally specific neighborhood trends can deviate from the overall local market trends. Great buyer’s agents understand which neighborhoods are demanding a premium and which lend themselves for more aggressive negotiation. This knowledge can pay big dividends for the prospective buyers.
7. They know the history of the homes they are showing
Great agents have a good idea which houses the buyer will be most interested in, prior to showing them, based on their understanding of the buyer’s needs/wants. The next step great agents take is gathering historical information about the homes they are confident the buyer will be interested in.
This includes when the home was built, who the builder was, any renovations that were done and when they were done. They know the details of the last few sales, including sales price and when the homes were sold. They gather property tax information and estimated homeowners’ insurance costs.
Great agents don’t wait for the buyers to ask questions and then gather the answers. They educate themselves on the homes and are ready when and if the questions come.
8. They know the value of relationships with other agents
Great buyer’s agents understand the relationships they have with other agents can affect how smooth the transaction will be or how tough it may be. They understand their job is to advocate and negotiate for their buyers, but they also realize their professionalism with and respect toward the other agent can make a difference for their buyers as well.
9. They know how to represent buyers at a high level
Great buyer’s agents know that to represent buyers at the highest level, they must develop their skills. They understand their skill level in presentation, communication and negotiation will have a direct impact on the transaction and the experience the buyers they represent will have in that transaction.
The National Association of Realtors has encouraged agents to develop these skills by offering free access to the Accredited Buyer’s Representative (ABR) designation course through the end of 2024. For more details on the free access provided, check out this page.
10. They understand the value of good communication
An article in Forbes states the three biggest complaints about real estate agents are that they “lie, are lazy and don’t communicate well.” Based on this article, poor communication is viewed in the same way as lying and laziness. Great agents understand providing good communication is a way to separate themselves from their competition and one of the most common complaints people have of agents.
This should start from the beginning. Sending a text the morning of your first meeting reminding them of the meeting and making sure the time and place still works for them sets the tone for your communication throughout the process.
Emailing, calling or texting the buyers with the agenda for the time you will spend with them provides clarity for what to expect. Consistent communication from the search process all the way through to post-closing follow-up will deepen the trust and relationship you have with your buyers.
By turning what the public views as a negative into a positive, great agents understand that great communication is the path to lifelong clients and referral partners.
11. They understand the value of a lifelong client relationship
The first point in this article was that great agents understand the value of a buyer, and it is only fitting that we close with the fact that great agents understand the value of a lifelong client relationship. The best agents understand that everything begins and ends with the clients.
This business is about them and how you serve them. When you focus on becoming the agent that not only deserves their business but an agent that earns their business for life, your business can’t help but grow.
Buyers need and deserve you to become the best version possible of yourself. Our industry needs great agents to step forward in this time of change and show the value we bring to the process of purchasing a home. This is a pivotal point in our industry and in your career. Now is the time for you to step forward and be the great agent you have the ability to become.
