For the real estate agent, the real estate transaction can be a complex process full of pitfalls and frustrations. Any one of these can torpedo a closing. As a mortgage professional, you hold a number of keys that will let real estate agents open more doors and close more deals.
The business model of helping agents overcome challenges has proven itself consistently as a path for both agents and originators to follow and grow their businesses together. Here are five reasons why you an are invaluable asset to any real estate agent.
1. You see more transactions than real estate agents.
The average real estate agent closes fewer than a handful transactions per year. To close those transactions, the agent often chases 10 times or more leads often leaving a lot of money on the table. As an originator, you are exposed to more successful transactions than the average agent. This exposure helps you recognize potential problems before an agent would, saving them time and increasing their results. An efficient agent can identify more deals that are likelier to potentially close. These deals result in a better allocation of everyone’s time, as well as greater profits and a stronger relationship for everyone involved. Your value increases as you position yourself as the premier loan officer that these agents refer good business to.
2. You have a superior understanding of the finances involved in a real estate deal.
The financial conversation between an agent and a buyer often involves only two questions: “Have you spoken to a loan officer?” and “Have you been pre-approved?” After these “tough” financial questions have been dealt with, the agent goes back to what he or she does best; selling the dream. And when an offer and contract is negotiated, the financial conversation is then finally addressed. Too many times, the dream doesn’t match the reality. By being able to have the most important, yet less romantic, financial conversation early on in the process, you’ll be invaluable to the majority of real estate professionals, from the rookies to seasoned veterans. You’ll increase their bottom line by saving them time, money and energy by giving them the opportunity to work with more qualified buyers who better understand their purchasing power and will be able to close.
3. You review each transaction with a fine tooth comb.
Historically, real estate agents have been weak in making strong and consistent referrals to reliable loan officers. The reality is, agents know the challenges on their side of closings, which often stem from mortgage-related issues. We all know a good originator relentlessly manages their files even before an underwriter gets involved. This practice, along with an open line of communication with the agent, results in increased loyalty and referrals. Agents are motivated by the number of deals they close, and will be motivated by those who help them close these deals.
4. An agent’s insurmountable title problem is a manageable event for you.
What could be the simplest of title issues for you as an originator, could be the equivalent of an insurmountable obstacle to a real estate agent. Most simply don’t even know where to start. Once again your vast exposure to more transactions, along with your established relationships with title companies and closing attorneys, creates value to any agent. An agent who can count on your experience to clear title issues will make you the go-to person on not only the hard deals, but any deal.
5. You can offer products they simply cannot get on their own.
The days of providing your agents with a fancy lunch are gone. What real estate agents need to survive and thrive in today’s marketplace are the tools and resources that originators can often acquire at a fraction of retail’s price, and provide them to the agents.
By being a resource of knowledge and utility, you can increase your perceived value and build strong bonds and relationships with greater numbers of real estate professionals. Opening more doors for agents will separate you from the pack, reversing the paradigm of chasing agents. Now you’ll have them begging to do business with you.
Erik Wind is co-founder of ShortSaleSpeedway. He may be reached by e-mail at [email protected]