In the wake of a recent proposed settlement between the National Association of Realtors and a class of home sellers in a class action lawsuit, there's been a lot of conversation in the real estate industry surrounding the value of certain professionals, particularly buyers' agents. While the specifics of the lawsuit are complicated — I had the opportunity to explain the nuances on an episode of the MovotoMic podcast — there are a lot of lessons to be learned for professionals of all industries from the fallout of this proposed settlement.
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First, I wanted to dig into some data because I believe it sets a strong groundwork for our argument. A recent study by Bright MLS, a multiple listing service based out of Maryland and one of the data sources that power real estate search websites like Movoto, Zillow, Homes.com, and Realtor.com, found that 76% of recent homebuyers and renters surveyed found that, "When you buy a home, you should definitely have someone who represents your interests during the whole process."
But despite that data, there's still been a lot of discussion in the media and in business circles about their value, which puts the onus back on these professionals and small business owners to make their value proposition shine.
From my multi-decade career in real estate, I've learned a few important lessons on how to ensure your business is defensible when it's under threat. This advice applies not just to real estate agents now but to any business professional when the time comes.
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Communicate Your Value, Don't Assume Your Customer Knows
Accountants are excellent at showing their value and can clearly point to financial gains and benefits versus a less experienced accountant or one who doesn't know their trade. Real estate agents and professionals must ensure they're doing the same. It's not enough to simply do a good job, you need to bring consumers along for the educational journey. Show them where you're helping them get a great deal and the value you provide that helps them justify the relationship.
Show Up
The first part seems simple, but it's really half the battle. To ensure your value is defensible, you have to be indispensable and dependable — making sure you really show up. Early in my career, I won over countless consumers because I put their needs first, communicated proactively, and was there whenever they needed me.
Focus on What You Can Control
There will always be outside threats to how you do business — many of them will be out of your control. For years, real estate agents have panicked about technology replacing them. And yet despite this, agents have shown incredible resilience time and time again in the face of what has seemed like existential threats. I've thrived in recessions or times of great change because I've focused only on the things I could control and didn't get distracted by the outside noise.
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Stay Positive
Challenges are inevitable in any industry. Instead of backing down, it is important to view challenges as opportunities to grow. It's also key to make sure the relationships in your life — business partners and the people you spend time with — are a positive support structure because it's impossible to navigate these times alone.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
