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Realtor® Marketing Secrets: Secret #3: Partner with Top-Producing Realtors

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Mortgage Professional America | 27 Sep 2012, 09:56 AM Agree 0
One of my coaching clients was telling me recently that he literally "HATES" working with Realtors. That's a strong word. When I asked him why he felt so strongly about that, he said it's because they're "flakey and waste his time." He continued by saying he'd "rather work with consumers" because he sees himself as more of a "Consumer Broker" than a "Realtor Broker."
  • William Matz | | 02 Oct 2012, 10:05 AM Agree 0
    Lots of good points here, especially the point about Realtor coachability, which is rare (and somewhat at odds with the "iron-fisted control" characteristic.) Unfortunately, the article reinforces an industry model that remains a major contributor toward the current (and future) financial crises.

    The current pattern is that people start with a Realtor, are referred to a mortgage originator, and the purchase closes. There may later be refinances and/or more purchases involving the Realtor and originator. Somewhere down the road, perhaps years later, the owner/borrower will realize there is a larger financial picture and seek financial planning assistance (atty, CFP, CPA, CLU, etc.) At that point owners generally discover that some or many of their prior transactions have not been consistent with their financial goals. So the current norm is Realtor to originator and then financial planning.

    The reality is that for most Americans their mortgage/home is their most important financial transaction. That is the point at which they should be doing finacial planning FIRST, to ensure that any proposed real estate purchase/borrowing is consistent with their overall financial goals. Unfortunately, Realtors and originators are not generally trained to offer that overview, although - and this is important- their technical advice for their part of the financial picture is absolutely essential. Realtors and originators -being paid on contingent commissions - have an inherent bias in completing the transactions. If borrowers all did financial planning, 95-99% of subprime and neg am mortgages never would have been made. (I have proven that the incremental interest cost on neg am deferred interest often exceeded 200%!)

    So I believe the better model is financial planning, then mortgage planning, then property decisions (with the Realtor). The key to success is to recognize that this must be a collaborative process. The Realtor rarely has the financial data to see a buyer's full picture.The originator has a better picture but is rarely trained in other financial disciplines. So it is the financial planning professional who needs to help the client establish "the big picture". Then the client can make real estate and financing choices that help move theri overall plan forward.

    Disclosure - Although I am trained in multiple financial areas, I am not a financial planner. Most of my mortgage work involves collaboration with other financial professionals so that they can see the full range of options offered by mortgages, and together we use those to help the clients achieve the best overall results.
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