A
Realtor's Most Valuable Alliance
by Matthew
Killikelly
Everyone who has ever sold real estate, or sold
anything for that matter, knows just how challenging
the world of sales can be. A realtor is faced
daily with demands of buyers and sellers, deadlines
and contracts, along with doing everything else
it takes to be successful in our field. Of course
most people would not sign on for such a high
stress occupation without the strong incomes
that reward those who perservere at such a demanding
job. Let’s face it; many people are simply unwilling
or unable to do what it takes in spite of the
great compensation available to those few who
succeed. For those who go on to become top producers
in the field there are some secrets learned
along the way that allow us to maximize our
efforts in a number of areas. One way realtors
can do this is to form alliances in related
industries, such as the mortgage field, which
can help make the most of opportunities and
actually result in a higher income. We’ve all
heard that eighty percent of the sales are usually
made by twenty percent of the sales people,
and forging alliances with strong mortgage professionals
is an important ingredient in the recipe for
success.
Realtors are faced with a complex sale, and
sometimes get so involved in selling that a
very important fact gets overlooked: nearly
every sale requires a mortgage. So, why then
are all too many guilty of assuming that the
mortgage is nearly a forgone conclusion when
it can make or break the transaction as well
as harm your valuable reputation in so many
instances? Moreover, many lack the true understanding
of what their erstwhile counterparts in the
mortgage field can do to improve closing ratios,
avoid wasting time and send clients to your
doorsteps. A lack of attention to this relationship
can cost dearly.
For example, how many times have you been so
excited to get out and show a prospective buyer
some homes that you really think will fit their
tastes, that you never bothered to determine
if they could afford the asking prices? After
all, what they want and what they can afford
may be worlds apart. Worse yet, you might have
spent several days showing homes to someone
that ultimately is unable to qualify for a loan
at all. If you’ve kicked yourself for this in
the past you must remember that targeting a
realistic goal for your prospect’s financing
should go before any other work you do. High
performing realtors often ask prospective clients
to fill out a basic information sheet, which
is then relayed to a mortgage company for immediate
analysis. Obviously, clients have the right
to do their mortgages where they choose. But,
this analysis, made by a reliable mortgage professional,
can often reveal limitations that can help us
redirect the sale to make sense and in some
cases will prevent the exasperation of showing
a number of homes to an unqualified buyer. In
short, your mortgage relationship can save you
time and every salesperson will tell you that
time is money. Therefore, if you spend your
time unwisely you will lose income, if you spend
it well you’ll prosper.
Another way that you can capitalize on your
relationship with a mortgage person is by trading
referrals. After all, what salesperson among
us couldn’t use more prospects? By maintaining
weekly contact with select (read: highly competent)
mortgage people, and sending them referrals
for clients who need financing one would obviously
expect referrals in return. Remember that just
as clients come to realtors without having first
explored mortgage financing, there are also
people visiting their local mortgage banker
or broker to feel out their financing opportunities
before they ever even look for a home through
a realtor. So why not trade? Since you can both
help each other this is a match made in sales
heaven. This method is a simple and effective
way to increase your production. However, there
is one important caution to note with such referral
relationships. These alliances can be fragile,
especially if one person or the other neglects
their duties within the agreement. To avoid
building and losing such relationships they
must be reaffirmed consistently. By doing this
you can make certain that the referral pipeline
keeps flowing. A weekly call and perhaps a monthly
lunch should ensure that this valuable relationship
remains healthy.
There is still yet more help your mortgage professionals
can render. This comes in the form of supplying
the realtor with full underwriting approvals,
which the realtor can submit to the seller at
the time bids are being considered. This comes
into play in two common situations. First, if
your buyer has a more risky credit profile or
can only put down a low down payment; both of
which are often a concern to sellers with regards
to the buyer’s ability to actually complete
a transaction. Secondly, in situations where
multiple bids are being submitted to a seller.
When submitting bids this is a very good idea
to increase the chances that your buyer’s offer
is accepted over other offers by submitting
a full underwriting approval for a loan. Of
course, this requires additional effort by your
mortgage contact to be sure, and it still does
not guarantee that your buyer’s offer is the
one accepted, but there is no question that
sellers are more inclined to accept an offer
supported by a full underwriting approval than
one accompanied by a flimsy letter stating that
a customer can get a loan. Certainly, any realtor
who has had a problematic mortgage situation
ruin a transaction and cost them a huge commission
is aware that most pre-qualification letters
that lack the proper diligence and expertise
are worth no more then the paper they are printed
on. While we can’t expect a full approval for
every transaction it’s certainly fair to ask
your mortgage counterpart for help in the instances
where it can make the difference between going
through the motions with yet another risky client
or multi-bid scenario and bagging significantly
more sales.
Understanding the nature of the symbiotic relationship
between realtors and mortgage professionals
can be a huge benefit to a realtor. Establishing
such relationships may require some work to
find the right type of mortgage people; who
are willing to walk the walk and not just talk
the talk. However, once the relationship is
established, incorporating these simple ideas
into your relationship with mortgage professionals
will not only make your job as a realtor less
stressful but will also assist you in maximizing
your sales opportunities. As long as we’re taking
the risk of being sales people we may as well
reap the most reward we possibly can. This is
a great way to ensure that success. |
