Women’s real estate advocate Bobbie Wasserman shares strategies for overcoming the barriers and barriers that sometimes prevent women from optimizing the financial potential of real estate ownership.
Whether refining your business model, mastering new technology, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps. The next chapter is about to begin. Be part of it. Join us and thousands of real estate leaders January 22-24, 2025.
Real estate commission changes are here. Effective August 17, 2024, listing agents will no longer post on the MLS what commission, if any, they are willing to pay to buyer’s agents. For sellers, this change may save money through reduced commissions paid to agents. For buyers, this could mean spending less on a home to pay for the expertise of a real estate agent.
For female home buyers, the new commission environment can be particularly daunting. Single women still lag behind men when it comes to building wealth through home equity, according to a study from the Yale School of Management.
Women still pay more to buy a home but typically make less profit when they sell it, the study found.
Participate in the August INMAN Intel Index Survey
Earlier this year, Zillow partnered with the National Fair Housing Alliance to survey homebuyers and found that the homebuying process is more complex and fraught with obstacles for women of color, noting that the racial wealth gap will still exist in 2024.
For some women, changes to the commission structure will only add more uncertainty to an already complex process, particularly around the financial implications of the purchase, the negotiation dynamics involved in home ownership and home maintenance.
financial impact
Compared to men, women already encounter financial challenges during the home buying process, including income disparities, wealth accumulation, financial knowledge and confidence, and access to credit. The additional burden of formally engaging a purchasing agent and negotiating a commission can increase the risk of inadvertent errors, with long-term consequences.
Here are some tips to help your female clients better navigate the home buying process while building trust and credibility in the process.
Understand and acknowledge financial issues
Take the time to listen to the concerns and don’t rush into the conversation. Provides budgeting guidance and offers strategies for taking advantage of financial aid 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 all stages of life—young professionals, veterans, seasoned professionals, or purchasing a home alone after divorce or the death of a spouse.
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 information and space they need to make decisions at their own pace.
Guide your clients through the entire home buying process. If your clients are having trouble getting a mortgage, assist them in finding a lender that offers fair terms and explain the importance of comparing loan offers. Demystify the process.
Negotiation dynamics
According to statistics, the vast majority – 89% Nar — of homebuyers purchase a home through a real estate agent or broker, and one of the main reasons is the agent’s effective negotiating ability.
It is important to explain your negotiation process and expertise. When working with female home buyers, providing a more detailed explanation of what to expect can significantly enhance their understanding of the process while demonstrating the value you bring.
SecondWe are ready to discuss the following:
- Negotiation style: Female home buyers value how the negotiation approach aligns with their preferences and needs. Share examples of how your negotiation strategies have benefited past clients and explain how your approach differs from other agents.
- negotiation: Detail how you prepare for a successful negotiation and how you plan to involve the buyer in the process. This helps women feel more confident and understand the steps they will take to get the best deal.
- Protect customer interests: Clearly outline how your client’s interests will be protected during negotiations, especially if multiple offers or counteroffers are involved. Discuss your strategies for recommending contingency measures and ensuring buyers are well protected.
- Effective communication: Explain how often you will provide updates and include buyers in the decision-making process. Effective communication is key to building trust and credibility and ensuring buyers feel supported throughout the transaction.
- Pay the right price: Describe how you would assess a property’s true value before entering into negotiations. This can relieve some financial anxiety and inject more confidence into the process.
home maintenance plan
The cost of homeownership is a frequently discussed topic in the Single Ladies Estates community. As a buyer’s agent, you can play a vital role in helping your client’s long-term success by emphasizing the importance of a maintenance plan from the beginning.
By sharing trusted personal contacts, such as reliable contractors and service providers, and recommending popular home maintenance apps, agents can help new homeowners take proactive steps to protect their investment.
Encouraging clients to prioritize these important aspects early not only enhances the home buying experience and protects the value of the property, it also enhances the value of the agent.
remember this
As real estate commission structures undergo significant changes, the challenges facing female homebuyers are more apparent than ever.
Understanding the financial implications, understanding the nuances of negotiation dynamics, and planning for long-term home maintenance are critical steps to successful homeownership. Your ability to guide women through these complex issues can enhance their home buying experience and solidify your role as a trusted partner.
Bobbie Wasserman is the founder and CEO of Single Lady Estates, a real estate resource and advocacy company dedicated to helping women through the entire home buying process (buying, selling, and life in between).
