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Now that buyers must negotiate how much commission they will pay their buyer’s agent, how can you show them that you are not only worth your commission at the time they transact but also long after the transaction closes? Here are five ways that you can achieve this important goal.
Help them save money on insurance policies
With the housing and auto insurance markets in utter turmoil due to massive losses from two Florida hurricanes and, now, the California wildfires, this may be one of the most important ways that agents can bring value to their buyers and justify the commissions they earn.
In fact, in many parts of the country, insurance and property tax expenses are now higher than a mortgage payment. That’s certainly the situation I found myself in when my current carrier almost doubled both my homeowner and auto insurance (they’re bundled together).
Fortunately, I’m working with an insurance broker (someone who can write policies with multiple companies). I reached out to him, and he saved me $2,600 on my homeowner’s policy and another $2,004 on my auto policy which is tied to the homeowner’s policy.
Action step No. 1: Help them find an insurance broker, if needed
Locate an insurance broker who can write policies for multiple companies. I found mine through my mortgage broker. Become familiar with the broker and the types of policies and companies they work with. This “team member” referral could potentially save your clients thousands on their insurance policies.
Encourage buyers to shop mortgage rates
At the time I built my previous house, I was a Private Banking client at Wells Fargo. I investigated how much they would charge me for the mortgage for my new home. Fortunately, I checked with a long-time friend who is a mortgage broker.
She found a better loan at Wells Fargo, with no points and a better interest rate than what Wells Fargo had offered me. Not only was that an upfront savings, but it also had a much lower monthly payment as well.
Action step No. 2: Make a referral to a mortgage broker, if needed
Encourage your buyers to work with a mortgage broker. Because mortgage rates are still volatile, lenders may pull the plug on a current loan commitment if the buyer doesn’t close on time.
If your buyers are using a mortgage broker, they can shift to another lender since they already have all the credit reports and documentation. I’ve had this happen repeatedly to me personally as well as with my buyer clients.
Help your buyer determine if the property they’re purchasing qualifies for DPA
According to Rob Chrane, the CEO of DownPaymentResoure.com, which aggregates all the down payment assistance programs (DPA) in the U.S., the typical amount of DPA granted in 2024 was $17,000. According to Chrane, 84 percent of the properties in the U.S. qualify for DPA, and they’re not just limited to low-income buyers.
DPA exists for specific groups such as first-generation homebuyers, minority buyers, Native Americans (I recently saw a program offering up to $90,000 in DPA in this category), those with disabilities, veterans, teachers, nurses, police, firefighters and more. For a more detailed discussion including a video as well, read my article “At long last down payment assistance is finally cool.”
DPA can make the difference between having enough money to make the required down payment and not being able to purchase.
Action step No. 3: Always check if DPA is available on the properties you show
Many MLSs have worked with DownPaymentResource.com to provide DPA information on every one of their listings that qualify for it. Realtor.com, Redfin, and Zillow now provide DPA information as well.
The best place to view whether a current listing has a DPA plus how many DPA programs, as well as the total amount of DPA available, is on Zillow. Realtor.com now directs you to lenders who offer DPA, but no longer lists the programs and the dollar amount available.
To locate DPA information on Zillow, scroll down to Down Payment Assistance directly below the Monthly Payment on the main property page to see that DPA programs are associated with that address.
Help them locate off-market properties
Two companies that are doing a stellar job in this area are Likely.AI as well as Leadflow plus their sister site that specializes in locating one- to four-unit investment properties, Realeflow.
Likely.Ai
There are several things I really like about Likely.AI. According to their website, 58 percent of your contacts lack property addresses, and another 30 percent become outdated each year. The LikelyAI “REfresh” engine cleans up your database by updating contact information. It also predicts the likelihood they will sell within the next 90-180 days (approximately 1 out of 10 homeowners.)
In addition, Likely.AI provides a number of marketing templates, email listing campaigns and, of particular interest for buyers, a “buyer persona” that contains information about who is most likely to purchase a given property.
Leadflow and Realeflow
The Leadflow and Realeflow Propensity to Sell scores are based upon the most robust predictive analytics AI currently in the residential sales arena. According to their website:
“Leadflow’s proprietary AI algorithm analyzes billions of data points, and historical, socioeconomic, and demographic data to let you know who will be most likely to sell their property in the next 90 days. With Leadflow’s AI tools for real estate agents, you’ll know they’re going to sell before they do.”
Currently their “propensity to sell score” scores properties on a 0 – 1000 scale and includes three types of scores: Retail (MLS), Investor (offsite owner with tenant), and Wholesale (rehab property for investors.) Scores higher than 900 have a 14 percent to 20 percent probability of coming on the market in the next 90-180 days.
Their AI currently has over 500 billion data points that allow you to simultaneously search your buyer’s wants and needs on multiple factors, including potentially inherited properties, upside down, delinquent tax activity, pre-foreclosures and “bored investor.”
Action step No. 4: Consider the tech tool that’s right for you
Since both companies offer free trials, try them out to see if either of them are right for your business.
Be what they need most — a strong negotiator
A strong negotiator can create value for buyers in ways they often overlook. Here are five important ways buyers benefit when working with a powerful negotiator:
Securing the best purchase price
An experienced negotiator knows how to research comparable sales, analyze market trends and use local expertise to make the case for the best possible price for their buyer. This can save buyers tens of thousands of dollars over the life of the loan.
To illustrate this point, the difference in the total cost of the loan on a mortgage of $380,000 versus $370,000 at 6.78 percent, 30-year fixed, is almost $35,000.
Negotiating repairs and seller concessions
A good agent can identify inspection-related leverage points to negotiate for necessary repairs or financial concessions from the seller. Whether it’s a credit for a new roof or covering part of the closing costs, these concessions directly reduce buyers’ expenses.
Structuring the most favorable contract terms
Beyond price, a skilled negotiator understands the importance of contract contingencies, timelines and other terms that protect buyers. For instance, they can negotiate extended escrow periods, flexible possession dates, the seller purchase of a homeowner warranty for the buyer, as well as negotiating a solution when the appraisal comes in low.
Protecting the buyer’s earnest money deposit
Negotiators ensure that contingencies, such as financing or inspections, are properly written into the contract, preventing buyers from losing their earnest money if something goes wrong or negotiating extensions on contingencies if needed.
Gaining extra concessions such as appliances or furniture
Powerful negotiators can convince sellers to include items such as washers, dryers, refrigerators or even furnishings in the purchase price as part of the deal. These extra save buyers thousands of dollars in replacement costs.
Action step No. 5: Come armed with past examples of your effectiveness
Two powerful ways to showcase your negotiation skills are to provide specific examples from previous deals of how you helped your buyers save money using any of these core strategies. First, showcase your negotiation skills with tangible examples of savings you’ve achieved for past clients.
The most powerful way, however, is through client testimonials that highlight how you saved them money and other ways you helped them through the transaction.
You are necessary for consumers
For buyers in today’s market, having a skilled Realtor in their court is more than a convenience — it’s an absolute necessity that can save buyers tens of thousands of dollars at multiple points throughout their homebuying journey.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.