Shoppers that shop themselves right out of the market……

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

shopping for mortgages

 

 

People that over shop, looking for the best deal; can certainly even bring down the best of a sales person’s moral. This can be tiresome for the good realtor or loan officer that has to deal with these types of clients on a weekly basis. Most of us are here to help in one way or another. Sure, we all need to get paid for what we do. And some of us have our own ways of doing things. But when it comes down to deceiving the general public to make a quick buck, this is where it needs to stop. And not only does the realtor or loan officer lose out on their commissions, but the client will sometimes end up paying more in the long run because of their decision. And this decision was based on a promise or guarantee that they are getting the lowest rate or little costs. And in regards to real estate, this happens to realtors because another realtor will over-price your house just to get the listing. And now you could be stuck with that agent for 3 to 6 months. There are so many different types of examples out there and this blog is just to educate the average consumer.

 

 

 

 

shopper 2

 

The general public needs to fully understand that nothing is free. Matter of fact, it’s sometimes said that it’s better to pay more for true quality, than just receiving the cheapest price for something. In the real estate and mortgage industry, what you are paying for is called "knowledge". Not a product or service that everyone has. Anyone can give you that. What you want is someone who is willing to give you the real and true facts and not just something that sounds the best.  Many of us, may they be a realtor or a loan officer, will spend more time learning about you, what you want, and your goals. And at the same time, to be able to give you our best and most professional advice, opinion, and the proper guidance. We want make sure that what we are doing for you is in your best interest. This is easier said than done. And if you aren’t careful, you could end up losing more than what you bargained for.

What happens in most cases is that the average client tells us what they want, even if it might not be good for them. They might not realize this because they might have received their information from a friend or family member, advising them what they should look for. Or even bad advice from someone in that particular industry that they are shopping with. And the problem here is that the person that you are shopping with is more interested in making money and moving onto the next client. But you don't get the full service that you deserve. Sure, you might get that best rate at that time. But is it your best move? Many of us in the real estate and mortgage industry believe that we need to use more elbow grease to help others fully understand the differences between certain products, those that they are shopping against, and to realize that there could be a better alternative. This is basically educating the client.

Overall, the general public needs to keep an open mind and not just jump to the first person that is giving them the best rate or someone telling them that they can get them more money for their house. If this were the case, that individual would be so busy; they wouldn’t have time for you. Think about it. Those that spend more time with you at first are those usually looking for your best interest. As many of us would say, "a client for life is a friend for life".

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Melissa Breeland 02/11/2009 02:02 AM
Topic:
Lending / Financial
Location:
New Jersey Camden County Cherry Hill
Groups:
Realtors®
Mortgages
All About Mortgages/Mortgage Networking
Realtors Needing the services of the Lending Powers
1st Time Buyers
Tags:
buyers
mortgages
fha
new jersey
loans
jeff belonger
real estate
first time homebuyers

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Rainmaker
1,135,318
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
I'm so happy I don't work with buyers. They would drive me crazy. Most of my sellers know me so I don't have that problem with them. They trust me and trust what I tell them. That's a good thing. Good post Jeff, I will look forward to the follow up:)
Oct 26, 2006 12:09 PM #6
Ambassador
555,468
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

"Jeff aka The Goose"

Shopping...Did Somone Say...Shopping!

I would drive all of you completely insane...

You would assume the fetus position and ask for your Mommys!

Shopping is what I do...

I would drive all of you completely insane...

Need I say more? LOL SEE :>

BTW All my friends like to shop to...Need I say more?

TLW "The Lovely Wife"...Boom La Ka Lakka...ROAR!

Oct 26, 2006 12:35 PM #7
Ambassador
746,035
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

George......that is a whole other topic. But I can't blame them for listening to their friends or family, because that is how I get some of my business. But I educate them and take care of them. Sadly to say, I know for a fact that not everyone takes care of their friends. I know this from a personal level from other friends in the mortgage business and how they help their so called friends. The bad part is that client thinks that they won't get taken advantage of. Hence the reason why some people say don't do business with friends. It's not always true.

Bryant......if I had it so easy as yourself.... ;o)  Kidding... I know from talking to you that you put more than your share of elbow grease and love into your deals. Hence the reason that you are not only well known in your area, but because of the referrals that you receive. That says a lot. And thanks for the compliment.

The Lovely Wife..... you make me laugh, thanks. Do you and Bryant come as a pair?  follow each other? 

In regards to shopping... what would you like my lovely.

Oct 26, 2006 01:11 PM #8
Ambassador
555,468
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

"Jeff aka The Goose"

We try to stay together but are easily sidetracked by emails...We get tons of them....

Flowers would be nice....

TLW "The Lovely Wife"...Boom La Ka Lakka...ROAR!

Oct 26, 2006 01:22 PM #9
Rainer
2,363
Jim Quinn
Quinn Appraisals - Bridgeton, NJ
Jeff, I can certainly understand how this takes place and happens. The shopping that is. I did get talked into a certain program many years ago just so that person could make a sale. I now realize that I want someone that is going to give me both the positives and negatives. Walk me through the process and keep up to date. Good post.
Oct 26, 2006 01:23 PM #10
Rainer
76,527
Mary McKnight
Sacrilicious Marketing - Orlando, FL
Yikes!  I may very well be guilty of this!  We are shopping for another home in our area right now and we are defintiely guilty of shopping around for the best deal.  Sorry, guys...  guess we will have to rethink our actions now.  Thanks Jeff.
Oct 27, 2006 06:41 AM #11
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

TLW......flowers it is....

Jim......it happens, that is my whole point. And I give the positives and negatives. Just being upfront with people.  thanks

Mary.....what are you guilty of?  Shopping for clothes?  lol  Hey...it's okay to shop. It's when you take someone for their word, because they know you are shopping.....so they want your business so bad.... that they will give you a rate or program that they know you won't get...but it buys them time. It's just fact....that it does happen.

Oct 27, 2006 11:58 AM #12
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

That's why I have always maintained that the first in (to see the customer) almost alwyas wins.  The convenience we deliver supercedes price in almost all cases.

I have always told every one of my clients that if they look hard enough, they'll find someone who can offer the exact same terms as I do for $500-$700 less.  The trick is that terms change daily so they better be prepared to "shop" perpetually. 

Oct 28, 2006 07:41 AM #13
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Brian... I agree with this. But there are times when I like to be 3rd or 4th...... especially when I can point out the fact that the first 2 people didn't explain a program well...or educate them in the total process. And when I do this, they usually stay with me.

So....it could go both ways at times.

Oct 28, 2006 01:28 PM #14
Ambassador
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
Angela.... yes, this happens. Again though....shopping is not a bad thing, but if you over shop, you can shop yourself into a bad deal. 
Oct 30, 2006 07:25 AM #15
Rainer
2,009
nobody - I asked for this to be deleted i
c - Winston-Salem, NC

Good points, Jeff.  ANybody that's been in the biz long knows has had those customers that either shop until they lose the house they really wanted.  There also seems to be a lot of folks who kill their credit score in the process.  Its definitely a delicate balance between being overly educated and simply making a wise decision.

-Jeff Benfield

Oct 30, 2006 02:50 PM #16
Rainer
998
Neil Burke
Lending - Haddonfield, NJ
Now we know this happens more than often......but there isn't much you can do about it,but just be upfront and give great service. Some good points here.
Dec 08, 2006 11:42 PM #17
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Jeff.... thanks for the polite comment. We just can't stop this from happening, but we can educate the clients.

Neil....  thanks for stopping by.

Dec 08, 2006 11:52 PM #18
Rainmaker
432,421
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

i had a guy ask me if i could match another offer he had. since he was referred to me, i told him that i almost always could match.

he had put every line from the gfe into a spreadsheet and asked me to match line by line the deals he was quoted from 10 lenders.

after 5 minutes of trying to explain why i couldnt match 0% origination AND the rate on another offer with origination.... i just gave up.

i said: "hey, you are a savvy buyer, one of those 10 lenders can match you..... i cannot"

 

i bet that guy is still shopping. LOL

 

Jan 30, 2007 02:26 AM #19
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Tom... thanks for shopping.  Either he is still shopping or someone matched all of his lines but then changed it on him at settlement.

I would also have mentioned to the client... hey Mr. Client, there was a reason why I was referred to you.... etc etc etc.   Again, thanks for sharing.

Jan 30, 2007 03:35 AM #20
Rainer
4,480
Ian Fregin
UCM - Virginia Beach, VA
I absolutely love Jeff B.'s comment above about apples to apples because most shoppers are comparing apples to oranges to strawberries. One way that I make sure my clients/prospects are comparing apples to apples is to layout my proposals in a spreadsheet that includes rate, term, one loan or two, mortgage insurance or not and how much, cash back, debts paid, the works. I then invite them to shop armed with that information. 9 times out ot 10, they come back to me and say that the "great deal" they were offered by another lender didn't hold water once they started asking the tough questions. Half the time, I ask my prospects that are shopping to grab a pen so they can write down all the questions they should be asking each lender they talk to...and then I proceed to answer each and every one of those questions for them myself.
Apr 15, 2007 10:15 AM #21
Rainmaker
122,638
Chrysti Tovani
Sactown Market - Real Estate Photography - Sacramento, CA
Sacramento Real Estate Photographer

I had a great time reading this blog and all of the funny stories everyone had. 

Getting ambushed by the family is my favorite.  You go to their home and Aunt Betty's waiting for you!  LOL!!! 

I had a listing where the guys mother's advice on countering back cost him all 4 offers we received.  He accepted the next offer and it wasn't as good as any of the first 4. 

Jun 11, 2007 03:12 PM #22
Ambassador
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Ian..... that is a very good idea, a spreadsheet with the comparisons. Thanks for sharing this. I know when I usually give out more information to the client, different options..... most lenders just give one option. The clients will come back to me because of this.

Chrystina.......   thanks for the comments and I am glad that you enjoyed this.

In regards to your story, I have seen it where parents have ruined a deal or two for their kids. But hey, can you blame the child for listening to their parents at times?  But then again, they should leave it up to the professional, right? 

Jun 11, 2007 03:44 PM #23
Ambassador
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

An oldie but a goodie....

 

Aug 12, 2008 12:56 AM #24
Rainer
4,399
MARYANN SUMARAGA
Vandyk Mortgage Company - Groveland, CA

HI Jeff Love your topics and I find them to the point. Your articles are well written.. I have used some of your articles to educate some of my borrowers.. Thanks for all the hard work you do. Wish you all the best.

Feb 12, 2009 02:00 PM #25
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