Agents with a niche, what do you share and when?

Question

So ... I've got a gripe and a question for you agents specializing in a particular area of real estate.

The short story/direct questionIf you're an agent with niche knowledge that sets you apart from other agents, how much of that knowledge do you share during an intake call? When do you withhold it?

The long storyWe are kind of the Airbnb real estate agents in Denver and Colorado Springs. We work with all kinds of buyers in these markets, but a differentiating factor for us is our intimate knowledge around short-term rental laws and ADU zoning. (I'm sure there are agents who specialize in off-market deals, or flipping, or distinct neighborhoods, or student house, or house hacking or whatever.)

We produce a lot of free content on our subject matter expertise. Videos, blog posts, BP forum posts, online classes, etc. So I can understand why many people would call us for information and expect us to tell them everything. When people call, we try to guide them in general terms, but we do retain the detailed information for clients who choose to work with us under contract.

I wasn't always this guarded. A few years ago, I would share everything I knew with whoever called. Most of those people turned into clients, but a select few -- I would later find out -- end up using the knowledge we provide to buy an Airbnb investment with an agent who would cut their commission.

Now we share less until we have a contract with the buyer. We've spent countless hours researching these topics to differentiate ourselves in the eyes of potential clients. Because that is how we make a living. We don't get paid for opening doors. We get paid for the knowledge that we have. So I chafe when a caller seems put out by the fact that I ask them if they're working with another agent. When they say yes, and I tell them I won't share everything, some people -- thought not a majority -- will imply that I am somehow rude or selfish.

I used to feel bad about this. Now I don't. You wouldn't go into a stock broker's office, tell them you're using a different stock broker and then expect them to share their expertise. Same with a lawyer. Again, their knowledge is why they get paid. Same here.

What do other agents think? How do you balance putting out content to highlight your knowledge base without not giving away the cake for free?

Russell Brazil · Answer

I work in a niche, particularly with investors.  I never give out 100% of information. I give them a lot, but I do hold back key pieces.

One example was I was working with a flipper once....and he decided to use a discount agent to list the flip after I had helped him buy it to try and save a few bucks.  Well what he did not know, because the discount agent did not know, was that he needed to file a waiver with the city to get the vacant and blighted property tax waived, which was 10% of the properties value per year. So on a 6 month project, he had about $25k in property taxes due instead of $2k had he filled our 1 simple form.

My profession is built primarily around the knowledge in my head, and much of that knowledge is worth huge sums of money. That one piece of information was worth $23k.  You have to know what to give away for free in order to gain clients, but you cant give it all away for free or they will have no need for you at all.

Michael Metzger · Answer

@James Carlson I applaud you for becoming an expert in a niche. It’s something that I believe more real estate agents should strive towards, especially with technology advancements in the space. Make yourself irreplaceable and with knowledge that clients can’t find on a quick Google search. And because you have placed yourself in that position you should get paid for the advanced knowledge. It’s in the value delivery. Exclusivity can play to your benefit if its communicated in the right way. The short of it is that you are not a generalist and therefore your niched knowledge is not free- don’t feel bad about that.

Matt M. · Answer

Now that you guys are more established, I think it's fair to get them under a BA agreement. Think about established youtubers that offer "the good stuff" to their patreon subscribers. Work for those that value your input, etc.

Those that don't sign the BA MIGHT do a deal with you, but how much time will they waste? I find them to be a one deal relationship if that. They usually look for the kickback and don't value time as they don't respect the agent's role in the transaction.

Plus your real estate "patreon" clients will be more likely to send referrals.

James Carlson · Answer

@James Hamling

" ... the day Maserati allows me to take a car, and pay for a Ford Fiesta, that is the day I will also stop requiring appropriate compensation for my services."

One of many, many good lines in a thoughtful response. I agree with everything you say. I'm not a youngin' -- I'm 39 -- but I am young enough to appreciate the Millennials desire for content, content, content. And it's been a huge win for my wife and I as a relatively young agents (five years in the industry). We've gained solid market share through quality content that increases our SEO on Google and grabs eyeballs.

I'm not going to shy away from that, but I think we will continue to recalibrate what we think the correct balance is between free content and the good stuff behind the buyer-agent agreement.

Timothy White · Answer

I like your position to care and share an overview of your value and have the believers who clearly see the benefit from contracting with you  enjoy the details of how your company helps them .if it's all free it has no value nice job developing and protecting your  business

James Hamling · Answer

@James Carlson I think what your doing and highlighted is a perfect picture of the arc of maturing as a proficient niche expert.

When earlier in the career there is this innocence, and so you freely share everything, spending considerable time and energy giving away valuable intellectual property (if it wasn't valuable, why would people seek it and soak it up), because your acting in good faith so you naturally/naively believe so is everyone else.

Than you get burned, someone sucks you dry, runs you around for considerable time removing your access and time with other clients, to leave you with less than what they give a waiter for 10 minutes of carrying food to there table..... yeah, think about that one for a moment.

At first, we take it on the chin, and move forward. And than again, and again, because if your really good at your niche and growing your presence through success more and more persons seek you out, with more and more who just want to leach that expertise and not pay for it. (side note, wouldn't it be hand to have a word to define what it is to take something of value from a person without paying for it, intentionally.....)

At this point, many quit, give up and move on to something else, not not being a specialized expert and just an average "drone" because they got ground to a nub working for free so much.

And then there is us grissled few who grew Rhin-skin, be became jaded and rightfully so. We respond with fearless remorse that no, we won't give the secret sauce away as it's available for purchase and all they have to do is buy a bottle. And those who take insult with it, we recognize it for what it is, venting anger at us for not allowing them to thieve from us.

As I have said to person before, the day Maserati allows me to take a car, and pay for a Ford Fiesta, that is the day I will also stop requiring appropriate compensation for my services.

Brian Larson · Answer

@James Carlson - This is a great thread.  Thank you.  I think your position is admirable.

As an agent that dives deep into the niche of ADUs in the Bay Area, I can truly understand your comments.  In fact, you make me want to reconsider my own value to clients.

I regularly spend loads of hours reading online real estate forums and local city rules to keep abreast of the ADU rules.  In the past, I have bombarded clients with my un-edited knowledge.  I primarily used this knowledge to differentiate myself from competitors.  However, in the future, I may decide to hold back more key information until folks sign-on as clients.

James Carlson · Answer

@Russell Brazil

My profession is built primarily around the knowledge in my head, and much of that knowledge is worth huge sums of money.

I think this is what some buyers don't understand. And it's not all on them. All most buyers know is what they see on HGTV. An agent opens doors and tells them how many beds and baths there are.

Maybe that's what some agents do, but hopefully most are adding intellectual value that keeps people out of trouble. You found a SFH zoned R2 and think you can convert it to a duplex? Great, but is the lot size big enough? You want to build an ADU in Denver? Awesome, you can do that, but you can't rent both units to separate parties once you move elsewhere? (It's not a short-cut to a duplex.)

The knowledge is the job. It reminds me of frustration I see with some lawyer friends. There's an idea that lawyers's primary job is to pound tables in courtrooms, so people think nothing of asking a lawyer their opinion about a legal matter as if that's just a small thing. No, that is the job.

Broadening this a bit, I think this is a problem across society. Physical trades and shuffling paper, these are jobs people understand getting paid for. They don't understand getting paid for knowledge alone. That's not tangible.

But as you pointed out, it becomes tangible real quick when money is lost. We have to do a better job as a profession of educating our clients on what our value is.

James Carlson · Answer

@Michael Metzger

Haha, I feel like I'm getting some head pats here, some attaboys. But I appreciate the support and feedback from other professionals.

James Carlson · Answer

@Matt M.

Yes, after tracking this for a few years, it's easy to see that those that don't sign the agreement or are resistant to it, rarely convert, and even if they do, that initial hesitation is an indication of how they operate at all stages of the process.

Agents with a niche, what do you share and when?

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