Women’s real estate advocate Bobbie Wasserman shares strategies for overcoming hurdles and obstacles that sometimes block women from optimizing the financial potential of real estate ownership.
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The real estate commission change is here. As of Aug. 17, 2024, listing agents no longer advertise the commission they are willing to pay — if any — to buyer agents on MLSs. For sellers, the change potentially saves money in the form of less commission paid to their agents. For buyers, it potentially means spending less on home purchases to cover the cost of a real estate agent’s expertise.
For women homebuyers, the new commission landscape might be particularly daunting. According to a Yale School of Management study, single women still lag behind men when it comes to wealth accumulation achieved through home equity.
The study found that women still pay more to buy a home and usually walk away with less profit when they sell.
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Earlier this year, Zillow teamed up with the National Fair Housing Alliance to survey homebuyers, and the results found that the purchasing process is even more complicated and filled with hurdles for women of color and noted that a racial wealth gap still exists in 2024.
The commission structure change only adds more uncertainty to an already complicated process for some women — particularly regarding the financial implications of the purchase, negotiation dynamics involved in a home purchase and home maintenance.
Financial implications
Women already encounter financial challenges in the homebuying process compared to men — including income disparities, wealth accumulation, financial literacy and confidence, and access to credit. The added burden of formally hiring a buying agent and negotiating a commission could increase the risk of unintentional errors with long-term consequences.
Here are a few tips that can help your female clients better navigate the home purchase process while building trust and credibility in the process.
Understand and acknowledge financial concerns
Take the time to listen to concerns without rushing the conversation. Provide budgeting guides, and offer strategies for leveraging financial assistance programs, grants or lower down payment mortgage options.
The housing affordability crisis has prompted many states to offer special programs. Remember, women can be “first-time” homebuyers at every stage of life — a young professional, a veteran, a seasoned professional, or purchasing a home solo after a divorce or spousal death.
Understand that women process information differently than men and may need more time and information to feel confident in their decisions. You can empower them by giving them all the necessary information and the space to make decisions at their own pace.
Guide your client through the entire home purchase process. If your client encounters obstacles in securing a mortgage, assist them in finding lenders who offer fair terms and explain the importance of comparing loan offers. Demystify the process.
Negotiation dynamics
The vast majority — 89 percent, according to NAR — of homebuyers use real estate agents or brokers to purchase homes, and a major reason for this is the agent’s ability to negotiate effectively.
It is essential to explain your negotiation process and expertise. When working with women homebuyers, providing a more detailed explanation of what to expect can significantly enhance their understanding of the process while demonstrating the value you bring.
Be prepared to discuss the following:
- Negotiation style: Women homebuyers value clarity on how your negotiation approach aligns with their preferences and needs. Share examples of how your negotiation tactics have benefited past clients, and explain what sets your approach apart from other agents.
- Negotiations: Detail how you prepare for successful negotiations and how you plan to involve the buyer in this process. This helps women feel more confident and informed about the steps they will take to secure the best deal.
- Protecting client interests: Clearly outline how you protect your client’s interests during negotiations, especially in situations involving multiple offers or counteroffers. Discuss your strategies for recommending contingencies and ensuring the buyer is well-protected.
- Effective communication: Explain how frequently you provide updates, and involve the buyer in the decision-making process. Effective communication is key to building trust and credibility and ensuring the buyer feels supported throughout the transaction.
- Paying the right price: Describe how you assess the true value of a property before entering negotiations. This can alleviate some financial anxieties and instill more confidence in the process.
Home maintenance planning
The cost of homeownership is a frequent topic of discussion within the Single Lady Estates community. As a buyer agent, you can play a crucial role in setting your clients up for long-term success by emphasizing the importance of maintenance planning right from the start.
By sharing trusted personal contacts — such as dependable contractors and service providers — and recommending popular home maintenance apps, agents can empower new homeowners to take proactive steps in protecting their investments.
Encouraging clients to prioritize these essential aspects early on not only enhances the homeownership experience and safeguards the value of the property but also reinforces an agent’s value.
Remember this
As the real estate commission structure undergoes significant changes, the challenges faced by women homebuyers are more pronounced than ever.
Navigating the financial implications, understanding the nuances of negotiation dynamics and planning for long-term home maintenance are crucial steps that can provide for successful homeownership. Your ability to guide women through these complexities enhances their homeownership experience and solidifies your role as a trusted partner.
Bobbie Wasserman is the founder and CEO of Single Lady Estates, a real estate resources and advocacy company that empowers women through the entire homeownership journey – buying, selling and life in between.