Watch as Brian Icenhower interviews Shelly Koenigsfeld to learn how Realtors can justify buyer agent commission in their consultations.
The real estate industry has undergone (and continues to undergo) significant changes, and buyer consultations have never been more important. With shifts in how real estate commissions are disclosed and structured, realtors must be prepared to clearly communicate their value to clients. A well-executed buyer consultation is key to demonstrating that value from the very beginning.
Shelly Coningsfield, today’s guest on the Brian Icenhower Podcast, is a highly experienced real estate professional, and has perfected the buyer consultation process. Her approach ensures that buyers understand the process, the importance of representation, and why working with a dedicated agent is in their best interest.
Listen to this episode of The Brian Icenhower Podcast.
VIDEO: How Realtors Can Justify Buyer Agent Commission
Setting the Stage: Establishing Professionalism
The first step in justifying the buyer agent commission is setting expectations upfront. Too often, agents jump straight into showing homes without ensuring that buyers understand the full process. Make it a priority to meet with buyers in a professional setting—an office, not a coffee shop.
Would a doctor meet with a patient at a coffee shop? Would an attorney hold consultations at a local diner? No. The same level of professionalism should apply to real estate. Meeting in a private, controlled environment fosters trust and allows the agent to provide a structured overview of the home-buying process.
The Power of Asking Questions
A crucial part of the process is asking the right questions. Before showing homes, ensure that buyers clarify their needs and wants. This includes:
What areas are you considering?
How many bedrooms and bathrooms do you need?
Have you secured financing?
Are there any must-haves or deal-breakers for your future home?
By engaging buyers in a structured conversation, you can position yourself as a knowledgeable advisor rather than just someone who opens doors. This also helps you tailor the home search and make efficient use of your time and the buyer’s time.
Demonstrating Value Through Expertise
Buyers often don’t realize how much goes into purchasing a home beyond simply choosing one. That’s why you should focus on educating clients about the entire process, including:
The importance of having a dedicated buyer’s agent
How commissions work and who pays them
The negotiation strategies an agent can use to get the best deal
The various inspections and due diligence required before closing
Many buyers assume they can simply call the listing agent and handle everything themselves. However, you should take the time to explain why that approach may not be in their best interest. The listing agent represents the seller, not the buyer. Without a buyer’s agent, the buyer is at a disadvantage when it comes to negotiations, inspections, and understanding contract details.
Overcoming Objections: Why a Buyer’s Agent is Essential
Buyers may initially resist signing a buyer agency agreement. Some common objections include:
“I just want to see this one property.”
“I’d rather work directly with the listing agent.”
“I can handle this on my own.”
You can handle these objections by asking thoughtful questions that help buyers realize they need professional representation:
Do you know how to navigate multiple offer situations?
Do you understand how to negotiate terms beyond just the sale price?
Do you have a plan if the home appraises for less than the purchase price?
Do you know which inspections you need beyond just a general home inspection?
These questions force buyers to acknowledge gaps in their knowledge and recognize the need for an experienced agent.
Realtors must be prepared to clearly communicate their value to clients. A well-executed buyer consultation is key to demonstrating that value from the very beginning.
Brian Icenhower
Ensuring Buyers Understand Compensation
One of the biggest reasons real estate commissions are under scrutiny is because buyers and sellers often don’t fully understand how agents are compensated. Make sure to discuss this early in the consultation. You can explain that:
The buyer’s agent commission is typically offered through the MLS, but this is negotiable.
If the offered commission is below her standard rate, the buyer may need to cover the difference.
Having a buyer’s agent ensures they receive full fiduciary representation, which protects their interests throughout the transaction.
By being transparent and upfront about compensation, you can remove any confusion and helps buyers understand why hiring a professional agent is a worthwhile investment.
The Key to Success: Confidence and Consistency
One of the reasons Shelly Coningsfield, today’s podcast guest, is so effective is that she exudes confidence. She doesn’t hesitate when explaining her process, and she doesn’t waver when it comes to her commission. She presents her services as non-negotiable—just like an attorney or financial advisor would.
Many agents struggle with buyer objections because they haven’t fully internalized their own value. If an agent hesitates or appears uncertain about their worth, the buyer will pick up on that and be less likely to commit. By being firm, professional, and knowledgeable, Shelly ensures that her clients respect her expertise and trust her guidance.
Final Thoughts
In today’s changing real estate landscape, buyer agents must proactively justify their commission by demonstrating value from the first conversation. By establishing professionalism, asking the right questions, educating buyers, and confidently explaining compensation, realtors can ensure they are seen as indispensable advisors—not just facilitators of home tours.
If you want to elevate your buyer consultation process and increase client commitment, approach each interaction with confidence, transparency, and a clear strategy, and you’ll find that buyers respect your expertise and understand why your commission is well-earned.
