While there are plenty of opportunities to succeed in real estate, most new agents learn quickly that this is an extremely competitive industry. The sheer number of licensed real estate agents in the United States alone usually means that you can’t walk through a restaurant without bumping into at least a few people who sell real estate in your state.
Despite the tough competition, cream rises, and there are several real estate agents and teams who complete more transactions than the average Joe. There are numerous attributes that combine to create a successful real estate team, but it almost always starts with your Value Proposition.
In this post, we will go in-depth into what a Value Proposition is, how to create one that suits your business, and how to market to the right target audiences.
An Overview of a Value Proposition
A value proposition is a statement that indicates what your business does, how it benefits you, and why a client or customer should choose you over a competitor. This proposition should be clear, concise, and should solve a problem that clients are willing to pay for.
For example, streaming entertainment services provide on-demand entertainment, which saves their customers the hassle of buying or renting physical DVDs and Blu-Ray discs. Netflix, Amazon Prime, Hulu, and Disney+ all make it convenient for consumers to enjoy their favorite shows from the comfort of home or on their phone.
Let’s take a closer look at these streaming services. Do they offer the same value proposition? No. Netflix has been adamant about staying commercial-free, while Amazon Prime offers streaming as an extra perk of membership.
No matter where you look, every successful business utilizes a specific value proposition. In the next section, we will look into the various value propositions real estate agents can (and do) use.
Value Propositions for Real Estate Agents
There are several factors that combine to create a value proposition. Here are just a few questions an agent or team should ask themselves as they start to craft one:
- What do we have to offer our clients?
- Are we experts in luxury real estate?
- Do we have a track record of closing FSBOs and Expireds?
- Is there a specific type of transactions we have expertise in?
- Is there a specific demographic that we seek to target in our marketing efforts?
- Why should clients choose you over a competitor?
- Do you close sales faster than the average time on market?
- Is your attention-to-detail and customer service outstanding?
- Do you specialize in interior design/staging?
- Are you an expert negotiator with certifications?
- Why do you want a client’s business?
- Did you grow up in the area?
- Are you passionate about real estate?
- Did you serve in the military, and want to help Veterans find housing?
The questions and sub-questions are just building blocks, and can be tailored to your specific value proposition. As you answer them, you can see your proposition start to take shape, and the more specific you can be, the easier it will be to market to your target audience.
Examples of Real Estate Value Propositions
Once you have an idea of what your value proposition is, the last step of creating one is being able to communicate it succinctly. Here are a few examples of short taglines that get your message across.
“Serving the [region] since [year]!”
“We are Your Luxury Real Estate Experts in [area/city]”
“Your Veteran-Operated and Veteran-Focused Real Estate Team”
Everyone has a story when it comes to real estate, but a longer story is more suited towards a website. Your tagline gets right to the point, and let’s your prospective clients know who you serve.
Implementing Your Value Proposition Into Marketing
Knowing your Value Proposition before you allocate resources towards marketing will save you countless hours and cash in the short- and long-run. Since we want our Value Proposition to be narrow and focused, it’s much easier to hone in on your target audience.
For example, if you are focused on luxury condos in a bustling urban area, you don’t have to worry about sending postcards or generating ads for subdivisions in the suburbs. This also applies to age demographics, the type of client events you host, and your social media content.
A solid Value Proposition, combined with a focused marketing campaign, is the Golden Ticket for generating leads and closings in real estate.
Share With Us!
How did you generate your Value Proposition? Was it determined before you made a sale, or did you notice a pattern with your first few transactions? Let us know in the comments below.
Establishing your Value Proposition and sharing it with your mailing lists doesn’t have to be hard. You can create a free account with no credit card to see how Wise Pelican works by clicking here.