Strategy: Agents and Lenders Team Up!

When I talk to real estate agents, they want to know how they can meet more clients. When I talk to mortgage brokers, they want to know how they can meet more real estate agents. The answer for mortgage brokers is to help agents get what they want: More clients. The answer for real estate agents is to team up with a good lender so that they can work both sides of the real estate business.

The goal for many real estate agents is to arrive at a place where they focus on listings generated by referrals from past clients. This approach does not fare well over time, particularly in a slow market. Clients stop moving or move out of the area and listing referrals gradually dry up. The agents who are still reaching their goals in this market are actively farming and working with buyers.

The main objection to working with buyers is that they can waste the agent's time and money because they aren't serious about buying. This is where a lender partner can really add value. Agents who meet potential buyers should not be shy about asking the buyer to prequalify with their lender partner. If prospects aren't willing to fill out a few forms and pay a nominal fee, are they serious?

How does an agent meet these prospects? Open houses are one good source of buyer prospects, but with a lender partner the agent can take his or her marketing to the next level by holding seminars for first time home buyers, investors, empty nesters, and retirees with presentations on real estate and financing. The key is finding a partner who is also serious about generating more prospects.

How can a lender attract desirable, proactive agents? One way is to prepare lender presentations that demonstrate value and expertise. Another way is to put together a simple prequalification package listing the necessary documentation and fees so that the agent can present it to potential buyers to gauge their seriousness. This package should also give an overview of different financing options.

When agents and lenders partner, they can generate more opportunities and provide better service to their clients. The key is understanding how their knowledge and their processes compliment each other and finding partners who have the same dedication to seeking out new clients rather than waiting for the next referral.

In a tough market like this, it pays to team up!