A value proposition is the benefit your service offers to real estate buyers and sellers.

Value propositions are a hot topic in the real estate industry as different business models are testing different value propositions to see which ones have the most traction with consumers.

For example, iBuyers are betting heavily that many homeowners are willing to trade the top-dollar of an open market listing for the certainty of a cash offer in hand. Their value proposition is speed, certainty, and simplicity.

There isn’t a one-size-fits-all value proposition which is why it is important to first identify your target audience. How do your services bring that audience value?

That is your value proposition that you will want to develop into USPs and promote on social media ads, your website, and your listing presentation to secure their business!

Mission vs Value Proposition vs Unique Selling Point

A real estate professional’s value proposition is usually closely related to their mission statement and unique selling points (USPs), but they are not synonymous.

The mission is about the thesis of your entire business. Why does your business exist?

The value proposition is about how your business helps others. It is your elevator pitch on the benefits of what your real estate business can offer.

Finally, the unique selling point is about how your business helps others better than your competition.

It’s also possible to have multiple USPs, while you likely only have one mission.

• Mission. What is the goal of your business?
• Value Proposition. How does that goal benefit customers?
• Target Audience. To whom is your value proposition designed to appeal?
• Unique Selling Point. How can you execute your value proposition better than the competition?

A USP is usually a single sentence that you will likely display prominently on your website, lead generation, marketing material, landing pages, and listing presentation. It is almost entirely designed to encourage potential clients to take action and sign the dotted line.

The unique selling point is the differentiating service that is likely unique to your business. It sets you apart. And, most important, it is consistent with the value proposition you are offering to your target market.

Below are two examples of missions, value propositions, and unique selling points. The missions may seem only slightly different at first glance, but you can see how each leads to very different strategies on their target audience and unique selling points.

Example 1

• Mission: You provide homeowners top-shelf experiences serving their Killeen, TX home buying and selling needs.
• Value proposition: Have a worry-free transaction.
• Target audience. Homeowners who prioritize an easy transaction.
• Unique Selling Point: You will personally pay for a listing-side home warranty for the duration of the listing period to guard against inspection surprises.

Example 2

• Mission: You provide full-service real estate services for Killeen, TX home buyers and sellers at an affordable cost.
• Value proposition: Pay less to buy and sell your home.
• Target audience: Price-conscious home sellers and buyers.
• Unique Selling Point: You offer your buyers a rebate for any commission earned over your fee.

Example Value Propositions and USPs

Mike Brown Group

Mike Brown’s team donates a portion of every transaction to Together We Give, fighting against homelessness.

Through the Together We Give Foundation, a portion of every transaction at the Mike Brown Group has been combined and The Mike Brown Group and the Together We Give Foundation awarded CATCH Idaho a check for $50,000 to help aid in their efforts to end homelessness. In the three years Together We Give has partnered with CATCH, $210,000 has been donated toward the effort to resolve homelessness. 

Jills Zeder Group

The Jills Zeder Group emphasizes its brokerage and networks to demonstrate its value proposition to luxury home sellers and getting their homes exposed to the right class of buyer.

The Jills Zeder Team is closely affiliated with Coldwell Banker® and reaches international buyers across 43 countries and territories through the Coldwell Banker Global Luxury® program. Furthermore, The Jills Zeder Team also works with the International Luxury Alliance and Hamptons International – London to reach ultra-high-net-worth luxury buyers from all over the world.

Redfin

Redfin helps people buy and sell homes in over 100 markets across the U.S. and Canada. As a residential real estate brokerage, we combine our agents and technology to create a faster, better and more affordable service.

Trelora

Trelora isn’t shy about its value proposition: savings.

Discount or flat-fee brokerages emphasize this value proposition with consumers.

The Smith Group

The Smith group focuses on its marketing as its USP, delivering the value of “exposure” and “buyer retention”.

The Smith Group is a dominant online presence with a combination of innovative marketing and strategic outreach. Utilizing a broad range of platforms, our content reaches international buyers and investors. Cutting-edge lead capture and unique tracking URL’s ensure exposure and buyer retention.

Matin Real Estate Group

If you are a brokerage, then your value proposition isn’t for buyers and sellers, but agents.

Jordan Matin has a recruiting video in which he goes through his brokerage USPs for agents, including:

• print marketing center
• organic website traffic
• in-house video production
• ISA call center
• client events

The Hudson Advisory Team

The Hudson Advisory Team is a group that has an investor focus. Their value proposition is sprinkled in their homepage.

United by an appreciation for design and architecture, our team’s personalized approach to real estate advisory is executed with the same meticulous consideration as the properties we represent.

Providing unbiased and objective advice, we offer an elevated level of service that our clients deserve, from the initial conversation to the final closing. With a long-term perspective always in mind, we approach our relationships with a view toward continuity and consider the impact of every decision we make accordingly.

Give Back Homes

One simple version of the value proposition are charity or social involvement. Something as simple as sending a percentage of your business proceeds to a non-profit charity is a unique value proposition.

Chris Kwon

Chris Kwon tells a story of one of his buyers to elaborate on his value proposition:

• he walked them through the process
• they didn’t feel alone
• there was a plan for everything that came up

Your Value Proposition and Your Niche

If you’ve chosen a niche market, it’s very likely that your niche is central to your value proposition. For example:

• I will take the unknowns out of the short sale process.
• I will give the numbers-ready investment advice you can only get from someone with fellow local investment experience.
• I am fluent in Russian and am prepared to explain the process thoroughly in your native language.
• I am a veteran, having used the VA loan personally, and understand how military benefits, as well as PCS and deployment schedules, can affect the decision to buy or sell a home.
• I’m a local old-timer, involved in the community, and know the history and evolution of this city and how both its past and future might affect your purchase decision.

Conclusion

Lastly, remember that value propositions are benefits, not things. “I am a tech-savvy real estate agent” is not a value proposition. “My tech tools will keep customers informed with a transparent and timely transaction process” is absolutely a value proposition.

Understanding your value proposition will help you better align your business decisions with your audience and goals, and craft USPs that align with your vision and close the deal!

Updated April 2, 2024; Originally published December 29, 2020