You probably know a realtor, but do you know what they actually do?
Most of us know a real estate agent and understand what that job may entail. But what role does a real estate agent really serve? What’s their value proposition, and are they a service, or is there a tangible product involved? Does it matter depending on if they are representing buyers or sellers?
As I view it, real estate agents are primarily in the service industry; however, they do have a distinct product. A real estate agent’s most evident product is the actual properties available for sale. In this case, agents are vendors who bring a definite product available for purchase to the public. The better the quality (i.e., nice houses at a market price) and quantity (number of homes for sale) an agent introduces to the marketplace, the more value they create.
The second product IS the agent. As an individual who essentially consults and provides a service to buyers and sellers, the person is the product. How they operate, their skill level with negotiating, understanding the market, communication, etc., makes one realtor different from another. An agent must view their competencies and capabilities as a real product that should be fine-tuned and upgraded consistently. In this manner, we as agents are not different from manufactured goods or software. In all cases, successful companies consider the customer’s evolving needs and tinker to get a better outcome.
The agent’s for-sale listings benefit the entire marketplace. As anyone knows who is or has looked for a home in the Boston area, inventory is tight, and more homes are always a welcome addition for buyers.
Beyond that, though, all agents provide the service to buyers and sellers. Here is where the value to one individual client is the focus. In this capacity, the agent brings their knowledge, soft skills, and personality and expertly consults given the client’s priorities. The service part is what those looking to buy or sell experience intimately. The agent’s role as an advisor and advocate for their client is where they make the most significant impact.
In summary, while agents are primarily client-facing in providing a service, they are and do, in fact, have tangible products. Those products directly contribute value to the overall marketplace. However, agents who are conscientious of what they offer and what their product truly is will consistently deliver a higher level of service to their clients.
Interested in listing a property or looking for a home to rent or buy? Give us a call at 603-356-9444to get matched with a Senné Associate and start your real estate journey today
Eric Raynor
Author