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How REALTORS use the Value Equation to get more listings and clients


Here’s another strategy the most successful REALTORS® are using.

It’s a simple equation, but when we unpack it you’ll come up with lots of ideas that can build your business.

There are many versions of the so-called Value Equation, but they all work something like this:

(Dream x Perceived Chance of Success) / (Time x Difficulty or Required Effort) = Value

In other words, the perceived value of working with you increases as a potential client has a bigger dream and a stronger belief that you are capable of helping them fulfil their dream.

It decreases by the length of time it takes for you to fulfil their dream and the amount of effort the prospect has to put into it.

All four of these factors are largely determined by the prospect’s perception. This is where you get to work your magic.

You see, you have the power to shape their perception.

The Dream

Let’s start with the Dream. For most real estate clients, this is pretty well understood.

A buyer’s dream is to buy an affordable property they love, which checks all their boxes.

A seller’s dream is to sell the property to a good buyer, quickly and without any hassles, on the seller’s terms, at the price the seller wants or higher.

Now, there are some professions where you could dramatically increase your chances of getting the client by helping them envision a bigger, better dream.

Coaching and entertainment come to mind.

But it doesn’t work that way in Real Estate. If anything, at some point you’re going to find yourself bringing your client back down to earth, telling them certain things aren’t possible.

As a REALTOR®, the dream is the place where you have the least amount of leverage, and yet many agents waste the bulk of their time and energy here.

Let them slam their heads into that brick wall a few more times. We’re going to move on to greener pastures.

Belief in Success

Now the second part of the equation is the prospect’s belief that you can fulfil their dream. This is where you can have a big impact.

Position yourself as an expert and an authority. Show your potential clients that you listen to them and you care.

Do more than merely staying visible on social media. Constantly provide useful information and advice that shows your level of competence.

Publish PDFs, white papers, and videos with valuable tips for home buyers and sellers.

Be encouraging and reassuring when you meet prospects in person.

Build your authority, expertise, and trust. This is the best and quickest way to create a top-heavy Value Equation.

Value from the Bottom

Now, a lot of REALTORS® are hitting the credibility button on the Value Equation already. It’s worth doing, but you can really get in under the radar by focusing on the bottom half of the equation.

You see, all the power of the client’s dream and their faith in you is divided (and dramatically reduced) by their perception of how long it will take and how hard it will be.

Buying or selling a home can be a major pain in the ass.

There’s a lot you can do to make the process faster and easier. The final piece is to make sure prospects know that you’re making it faster and easier.

The Curse of the Online Portals

According to the National Association of Realtors, in 2021, 43% of homebuyers looked at homes online for six weeks or longer before they even considered talking to a REALTOR® (1) I suspect that number is much higher, and it’s certainly going up.

Last year, more than 70,000 homeowners sold their homes to an iBuyer such as Zillow or OpenDoor.(2)

These portals are creating a huge challenge for REALTORS®, but there’s also real opportunity here.

These websites are taking off because they make the initial part of the sale—the listing or the home search—fast and easy.

The bottom of the Value Equation is shrunk down to almost nothing, and this creates almost infinite value.

However, at some point, clients have to leave the digital realm and deal with the real world. In real estate, this means repairs, inspections, remodeling, cleaning, and all the legwork of seeing homes in person.

If you can demonstrate that you know how to speed up the process or make it easier, you can have a real edge.

You can do this by offering checklists and guides, explaining aspects of the sale in videos, specializing in a specific type of property or transaction, actively helping buyers get financing (and actively publicizing the fact you do this), building relationships with contractors and other venders who can spruce up a property for a better sale, showing a buyer fewer homes that are a closer fit to what they want, working directly with other agents before you’re in contract…

There’s a whole lot more, and all it takes is some creativity.

Real Estate is one of the few professions where the clients are more excited about the transaction than you are. The dream side of the equation takes care of itself.

If you can actively work on the other three factors in the Value Equation, you’re going to be one of the top performers in your area.


(1) National Association of Realtors. 2021 Home Buyers and Sellers Generational Trends Report.

(2) https://www.inman.com/2022/03/02/ibuyers-purchased-over-70k-homes-in-2021-doubling-previous-record/



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