In our recent podcast episode of Estate of Mind, hosts Tami Simms and Jack Miller were joined by special guest Mike Everett, Senior Vice President and Certified National Instructor at the Real Estate Negotiation Institute. Together, they explored strategies for demonstrating an agent’s professional value through the art of mindful negotiation.
The Challenge of Demonstrating Professional Value
Given the current market and recent changes within the real estate industry, there is a renewed focus on how agents need to demonstrate the value of their professional service, particularly in buyer representation.
Understanding how to negotiate—not just the purchase or sale of a property, but also the value of your services throughout the entire relationship—has never been more important.
Mike Everett’s Perspective
Mike shared his strategies for real estate agents to effectively demonstrate their value amidst industry changes. He emphasized the difference between “expressing” value (an agent’s accomplishments and services) and “demonstrating” value (aligning with the client’s needs).
Many agents, he explained, focus too much on promoting their credentials or brokerages. Instead, he encourages agents to focus on understanding the client’s priorities and framing their services to show direct benefits. The key to winning clients lies in addressing what matters most to them.
Mike believes that the best way to negotiate with clients is to use personalized communication and principles of persuasion while building emotional connections. He described collaborative negotiation as a strategy for win-win solutions, balancing client needs with the other party’s interests. He also noted that effective communication, particularly in negotiations, is a critical differentiator for agents, especially in luxury markets.
Mike urges agents to recognize their worth as professionals and seek compensation based on the value they offer. He also shared examples of how to effectively prepare value statements that clients perceive as beneficial.
Jack Miller’s Perspective
Jack further emphasized the importance of personalized client interactions, especially in the luxury real estate market. He noted that many agents rely on templates to market their services, but a tailored approach is key to building rapport based on trust and responsiveness.
In luxury markets, clients often have substantial real estate experience, both good and bad. Understanding their preferences, including how they like to communicate, helps agents tailor their services accordingly. Personalized service helps dispel the stereotype of impersonal or self-centered agents. This reassures clients that the agent is truly focused on their needs.
Many agents get caught up in showcasing tools or services, what clients ultimately care about is whether the agent truly listens and addresses their specific needs. Once that connection is made, discussions about compensation flow naturally. Satisfied clients, even those initially difficult, can become a powerful referral source, leading to long-term success and further business from their influential networks.
His key takeaway is that in luxury real estate, clients seek not just expertise but a unique, tailored experience. They’re willing to pay for it if their expectations are met.
In conclusion
Tami concluded by stressing the need for agents to differentiate themselves by focusing on the client’s perception of value. She emphasized the importance of using negotiation and communication skills to ensure their services align with the client’s goals. Ultimately, this leads to better compensation and greater client satisfaction.
We encourage you to listen to the full podcast to gain more insights:
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