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Competitive Advantage in Real Estate

Updated on April 17, 2013

It is very important for a real estate agent to have and use a competitive advantage. When meeting prospective clients for the first time one on one, in a prospect presentation, it is imperative to establish your competitive advantage right away. There are over 1.2 million real estate agents in the United States, and you need to set yourself apart from that huge crowd in order to win business. In your presentation, you want your prospective client to see why they should hire you, and what is in it for them.

There is a distinct difference between explaining what you as an agent will do for a client and detailing what results the client can expect to see from your work. Buyers and sellers both want to know what they will get, not what you can do. There are plenty of marketing strategies and gimmicks that almost all agents use, such as websites, home magazines, flyers, and newspaper ads. These are not competitive advantages. You must have something that clients can get from you and not from other agents.

In order to entice clients to list with you rather than your competitor, you need to consistently demonstrate the difference between your competition and yourself. Ask yourself some questions to determine your competitive advantage. Do any of your sales statistics set you apart from competitors? Do you have a market specialty or niche that sets you apart? Do you consistently negotiate quantifiable savings for buyers and higher sale prices for sellers? Is there a geographic region that you have a large market share in? Can you sell particular properties especially well, such as condos or duplexes?

You do not need a huge list of competitive points to present. A few clearly highlighted advantages are fine to present to a prospective client. Remember that results are what matters in the real estate market. How you do in an economic hard time is going to define how your business is doing overall. Anyone can sell when everyone wants to buy or sell, but when the competition is fierce only the best agents can keep up their sales.

Spend some time evaluating your marketing strategies and tools. What do you have or do that other agents cannot compete with? If you cannot find anything that sets you apart, you need to work hard to develop some concrete benefits that you can offer clients. Otherwise other agents will gladly take your place, and you will find yourself without properties to market.


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