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I asked a former colleague for referrals, and he told me his wife has been in the mortgage biz for over 10 years and currently works with a bunch of RE agents.
He said I could maybe do some cross-selling with his wife.
Help me understand how real estate agents benefit by cross selling mortgage products?
It sounds too one-way, with the mortgage officer benefiting more than the RE agent. It's very easy to refer your buyers to mortgage brokers and lenders, but what can they give you in return?
My brokerage already works chiefly with one lender, and it's convenient for us to just send clients that way.
Some buyers go to mortgage brokers before they hire an agent. It would have to be a broker w strong marketing outside agent referrals. Ask him precisely how it would work and how many referrals they are able to give to agents each month.
Actually, you will likely benefit more by having a mortgage broker passing you qualified buyers than you will going the other way. Many buyers come to an agent pre-qualified through their own bank or through a lender they have used before. Getting them to switch is difficult. Also you may get a referral that you send to the lender that is not qualified or ready.
Getting an already qualified buyer makes the whole process easier.
Some buyers go to mortgage brokers before they hire an agent. It would have to be a broker w strong marketing outside agent referrals. Ask him precisely how it would work and how many referrals they are able to give to agents each month.
^^ This
But I am not referring anyone unless they are willing to give the same level of service that I give. I need people that I can trust to take care of the part of business that I am not the expert on. I get very few referrals from my mortgage broker but I at least know that she will get the loan funded (if she can) and keep me in the communication loop.
If my clients trust me enough to be their agent, they also also trust me to only refer them to vendors or professionals that will take care of them too.
As a real estate agent you have to be Very Careful when recommending one service over another. Can be 'steering'. Most agents have a bunch of cards for inspectors, mortgage agents.
I asked a former colleague for referrals, and he told me his wife has been in the mortgage biz for over 10 years and currently works with a bunch of RE agents.
He said I could maybe do some cross-selling with his wife.
Help me understand how real estate agents benefit by cross selling mortgage products?
It sounds too one-way, with the mortgage officer benefiting more than the RE agent. It's very easy to refer your buyers to mortgage brokers and lenders, but what can they give you in return?
My brokerage already works chiefly with one lender, and it's convenient for us to just send clients that way.
Your first sentence is confusing. YOU asked for referrals, but don't "see the value" in lifting a finger to return the favor?
There is something to synergy. I spend most of my time looking for strong realtor relationships. As a lender, we spend a few grand every month to co-pay for several Boomtown marketing platforms.
These platforms result in a bank of buyer leads who naturally want to talk with a Realtor, if anyone at all. The secret sauce is that our realtor partners should hopefully be recommending us as good lending option. This happens about 10% of the time. But we still cut the check every month.
Its a two way street. You need to be committed to them just as they would be to you.
1. You would be thoroughly surprised how many people get qualified by their bank before ever touching base with an agent.
2. Why would they refer someone to you, when you aren't going to be doing the same to them?
3. Why would they refer some to you, when they have another agent they can refer the client to and know they will see something in return in the long run?
Real Estate is a relationship based business, what are you offering to these people as a benefit to receiving the pre-qualified buyer?
Cross-selling is a marketing term for the practice of suggesting related products or services to a customer who is considering buying something. Cross selling can have the disadvantage of causing the customer to lose trust in the seller. They may feel that the seller does not have their best interests in mind, but only wants to take their money.
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