My Realtor, My Friend: Perceived Value in the Realtor-Client Relationship

The business of residential real estate is booming; over 5 million homes were sold in the United States in 2017 alone, according to the National Association of REALTORS® (“Quick Real Estate Statistics,” 2018). With the recovery of the housing market after the 2008 crash, more home buyers and sellers seek out real estate agents to assist with their transactions. Despite the majority of home buyers and sellers still using agents to conduct transactions, obstacles for fostering positive relationships come in the form of poor agent ethical reputations (Pacelle, 1994), agent empathy (Snyder et al, 2011), and even agent attractiveness (S.P. Salter et al, 2012). These reasons make it all the more critical that agents stand out from competitors, raising the question of how agents can differentiate themselves from other agents. To answer this question, this thesis seeks to discover what clients and agents value the most in their relationship with each other. In this study, three real estate agents and a client or client-couple from each were interviewed about the agent’s personality, brand promise, and actions taken to convey the promise. The most important factors in developing relationships, as well as a theoretical framework for the different relationships that can be formed within the agent-client context, were derived from the interview data collected. Commercial friendship develops from the overlap of all three relationship factors identified in the study, and as previously found, correlates with client loyalty and relationship quality (Lou, Zhou & Zheng, 2011). By shaping service around such factors, agents may be able to form better relationships with their clients. An agent with a stronger relationship with their clients may be more likely to receive referrals, earn customer loyalty, and even capture the attention of a first-time home buyer without the use of referral.