Home : Blogs : Olan Carder : Olan Carder on Mortgages and Charlotte Home Loans

Is GREAT service still enough to grow your business???

I have been in the mortgage business for over 8 years. When I started it seemed that if you answered your phone and closed deals smoothly... the sky was the limit! These days things have changed and I am not sure if it is for the better.

It seems to me that great service just isn't enough anymore. Now, that is not to say that great service isn't important because it is. If you don't have good service you aren't even in the game. Great service can still give you a solid foundation, but it doesn't seem to actually grow your business as much as it used to.

As the market evolves it is becoming more important to market yourself well. Five years ago if you had some innovative system/program and added value to a Realtor (books, training, etc.) you were the man! Now the bar seems to have been raised a little higher. Now it seems to be moving to a market that rewards people who can produce and share leads. I am not saying that is all bad but it is definitely different.

With more and more Realtors asking for referrals back to them and/or money for co-marketing agreements, it has changed the basic dynamic of what makes a loan officer successful. My question is what has actually become of service? What is typical in our market?

Do most lenders get closing packages out early? Do most lenders attend their closings? What has become the norm?

Olan Carder

Charlotte NC Mortgages

www.mycharlottelender.com

Posted by Olan Carder on 03/07/2007 02:16 PM

Comments (58)

mortgage, marketing

58 Comments on Is GREAT service still enough to grow your business???

MAR

2007

I 'featured' this post by Olan because he asks some very timely and valid questions. How HAVE things changed? What are the most effective ways that Mortgage Professionals can 'grow' their businesses?

- Rich Jacobson -

Olan... I definetly think things have changed (hence Ar and and other online sites dedicated to helping your business grow.) But I don't think anything can replace great customer service. There is no website in the world that can save you if you don't put your customers' needs first.

Olan, My experience is that it is a people business an always will be. People relate to awesome service and integrity rather than to someone that promotes themselves.

Mortgage brokers, no matter how terrific the service, have the constraint of costs and rates. This is horrible, because homebuyers will most often go with the rate- you're selling an intangible, except that payment being lowest often hits paydirt. Adding to this, you have numerous competitors that will offer and say just about anything to get the loan, then switch it when everyone is at their wit's end with anticipation and frustration. Unfortunately, it would seem that advertising customers who have experienced this "bait and switch" would appear negative, except that it happens all of the time. EXCEPT, in the final analysis, your program is probably BETTER than the offending bait and switcher...if you could let homebuyers know that this practice is common without seeming sour grapes, it might help business.

Thanks for the responses guys! I fully understand what you are saying but it is the Real Estate community that determines our next deal not the consumers. The worst loan officer in the world (from service standpoint) might be able to sway a customer up front, but Realtors know the loan officers' track records.

What I am seeing more and more of are Realtors who make the choice of who they refer business to NOT based on a strong track record of service and more based on who "promotes" themselves better. Things like cash for co-branded marketing are hard to compete with...

PLUS - you have all these joint ventures and builder owned mortgage companies that take and increasing large share of the pie.

Olan,

I definitely lean toward the QUALITY of SERVICE over volume, reputation or recommendation. It's all based on personal experience for me and the feedback I get from clients. With all the subprime market upset, fly-by-night brokers will no longer be able to get by with just their programs so they better have something else to bring to the table : )

Let me clarify... I have no problem winning the business once it is referred to me. It is getting the referral sources that seems to have changed...

Olan

From a Broker standpoint I look for someone who is on top of the transaction at all times and keeps me updated on every single thing when it happens. That is the guy who is getting my business.

Finding a mortgage rep is a gamble he can tell you one thing and when your in the transaction you find its all something else. Those people are one time only people and will never earn my respect or the repect of people I know. It's like anything else when you know your dealing with a bad apple you have to make sure that apple doesn't make it to the bunch ever again.

I have found a new guy and he and I are working a deal together, without asking he is always updating me on what's going on. I am able to update my clients via email and he does the same thing. We compliment each others work and the client is always very appreciative.

Olan, you have to make your Broker look good and you will always get the referrals. I think when a Broker asks you to rent space in his office or jointly pay for advertising he doesn't think your worth your salt and needs to be compensated in other ways.

Gary I understand your feelings and wish more Realtors felt as you do. However what I run into more and more are statements like this:

Wow, that is the most impressive system for status I have ever heard of and no one I am working with has a lot of the services you offer, but I only work with lenders who help me pay for my lead generation...

OR

Sounds great, but I am really putting a big emphasis on this new full page ad, and whichever lender partners with me on it is probably going to get the leads...

Olan, you know I prefer my clients work with you because of the service, but the builder pretty much makes them use their lender...

I don't lose business because of service... that's my point. I think the level of service I offer is extremely competitive and would be shocked if anyone in this area offered better. It is the fact that I offer some eye-popping good service and many Realtors seem almost uninterested or the ones who care are forced into using builder owned lenders who couldn't care less about service...

Olan,

From an agents standpoint I believe in that service will always be the most important. Good service will bring you more business in the future. I think that the lenders that have great programs and can send business back will definetly stand out to many real estate agents.

Olan:

Sorry for your negative experiences, but with my office it is SERVICE, SERVICE, SERVICE. Doing what you are supposed to do, when you are supposed to do it. You will get repeat business.

Olan.... first off...WELCOME to ACTIVE RAIN....

ALso.... CONGRATS ON YOUR FIRST FEATURE.......

feature

2nd....... good post. My side, deals can still close smoothly, no matter how much the lenders keep changing guidelines and or programs. My opinion...take a very detailed 1003.... and get as much information upfront as possible. I just had two very hard deals and they still closed. I had a refinance closed from start to finish literally in 8 business days... a sub prime bank statement program, with 560 credit scores at a 80% LTV... Ln amt... 813,750.... tough deal with most lenders... but it was all there and nothing for anyone to pick apart.

What I just stated was geared more towards your first sentence. The rest of what you stated... in my opinion. There were less lenders/loan officers and more business 5 years ago. Today, more lenders and loan officers and business declining. It hasn't changed on how you should get business.

My keys... networking always and everytime I go out... having my business cards with me at all time. Staying after your past clients, always sending newletters, keeping in front of them.... I just see it more difficult for the average loan officer because so many grab business while lying, stretching the truth, and or over promising. Again, my opinions...

As Gary said... being on top of things. I give follow up to the realtors all of the time.. even when they don't ask for it.... going to closings... and so much more... and yes, marketing yourself... and being in 3 to 4 peaks and valleys hasn't hurt in 14 years also...

Again...good job and welcome.

Joan... I wnated to chime in, even though it's Olan's blog... I have given service, service, and service. And some of those realtors did gravitate to some lenders that paid them money and or in other ways, with gifts. So, Olan has a point in some cases. Many people preach that they want the best for their client, but it's talk with a decent portion of the real estate community. Maybe not in here... maybe not in some areas. But in South Jersey....big time.... just a fact. But based on some of my opinion also..

As a Realtor what I want in a lender hasn't changed since I started in 1991: an honest loan officer who is great with communication and follow through and can get the job done no matter how challenging. What I think has changed is that there are so many more options for buyers. Many of my buyers don't even ask me for a lender referral as they almost always did years ago but rather find their own through the Internet, credit unions, or friends. Keep your focus on service but make it stand out!

Olan....Really good post. This is a hot topic....

Diane,....how right you are regarding everyone knowing someone in the industry. That cannabalizes the amount of deals for all the point of service lenders.

Jeff...Right on! Especially your second post regarding the stste of affairs in south Jersey. From my experience (as a title agent), there are many professionals who have compromised service to themselves and invariably to their clients by way of accepting gifts, sports tickets, etc.

It's a sad state of affairs...... It looks like the regulators are asleep at the wheel!

Diane... if I can jump in.... yes, the one thing that has changed...the internet and so many friends and or family that have jumped in, trying to earn a quick buck.

I did a post on something like this at 3 am this morning....in regards to... as professionals, we need to educate. And I talked about what you mentioned in the last sentence.

Tom.... I don't have a problem with tickets and such.... it's those that left very good to excellent loan officers for this....

Thanks for your comments, Jeff.

My partner, Gary, and I have a pretty good business. We are usually near the top in production for our company.

Our frustration is just that we seem to do more and more and get less and less. We are doing some things with service right now that would have blown my mind 8 years ago but we did more loans then.

We have always been purchase business driven. We depend mostly on Realtors, but we do have 1 solid builder account.

Right now this is a snapshot of our service standards:

- Calls returned within an hour (7 days a week)
- Online status website for each client 24/7 status!
- I attend every closing
- Packages to attoneys on average 3 days early
- We review the HUD with client before they get to closing
- We send out 23 pieces of full color marketing to every client in our name and Realtors for 3 years after closing

I mean I really don't know how much better service we could give. THIS is the FRUSTRATING part... I go out and meet new Realtors and tell them about it and they love it... but still many won't send business unless I pay! I don't pay money for deals - never have. It is just a trend I see and it worries me.

I wish there was something we could do about it as an industry...

Olan, I was hoping that Jeff would jump in on this post, and I'm glad to see that he has. I hope his input, as well as other comments, will prove to be helpful to your endeavors.

Welcome to the ActiveRain Community! Let me know if you have any questions along the way!

Rich,,.... thanks... get Mark Flanders in here also. Tell him to stop sleeping after reading so many posts. ;o)

Olan.... now, that is a great resume of trying keep business and go after new business. One thing that I could add to this is possibly your market. I have dabbled in North Carolina in the last 3 years. What I have found in about 60% of the state is that in the last 5 years, values have not increased as the rest of the US. Now, with values declining....the average market slowing down.... it will seem a lot tougher.

One possible solution, start to creeo into other markets by other means of networking. Work on Virginia a little and possibly Maryland. I know SC is no better now. Florida... scattered... and you can do this through Active Rain, I didn't see it mentioned.... but do you have a web page or web site? If so, get that marketed in new areas. .... and possibly some internet leads.... not much, but just enough to try and grab a new client or two per month. I think you need to attack business from all parts of the spectrum, especially now, since so many lenders are using Lending Tree and other services. Me? Stay away from Lending Tree...

I hope this helps some.... I have a few more things on my mind... back later.

Thanks Jeff... I have a good website but please check it out and give me your opinion. It is www.olancarder.com or www.mycharlottelender.com. Same site either way...

I have done a little with Google in the past but didn't get much out of it. We are actually closing a loan this month that we get through our website and I would love to do more.

I think in today's society and market, you really must find a way to set yourself apart, and market yourself. Agents and Lenders are a dime a dozen. What makes YOU special.. Think about it, and grow from there. In my opinion, that is a key to success..

Olan - welcome and congratulations. I think Jeff Belonger is on the right track here. Personally, I look for lenders with a good track record with my past clients. I try to give my buyers a checklist that goes beyond the mere rate quotes -- e.g. recommendations, attending closing, funding the loans before closing, checking the BBB, do the have local appraisers, do they have local underwriting-- and for me I want to know if they are realtor friendly and if they will keep me up to date on the status of the loan, etc. I also try to make sure when buyers hear about rates - they get real estimates of the costs -- and try to catch hidden charges. So there are a lot of factors that come within the purview of service. Our firm also likes to do some education seminars with some of the lenders we have had long relationships with and often leads to business as well as educating the consumer.

Joan.... this is off subject, but I just tried sending you an e-mail through AR and it came back not sent. Just an FYI....

Olan you have asked a question that I ask even as a real estate agent. (I also use to be a L/O and was faced with some of the same problems.) When I go on listing appointments I often lose the listing because of the commission rate I charge per the request of the company. Some homeowners can't seem to see past the charge to all that is offered if they agree to list with me. (I have a pretty good sale ratio on the homes I list.) Very frustrating! As for loan officers around here, none are willing to give me leads unless I give them leads first. Now I have given leads to them but have not received any in return. Probably because they don't have that many to share and are only going to share with the people that have given them a lot or have been with them for sometime. Don't know forsure.

It is a challenging market. As a Realtor I have a lot of costs, I would like more business I am newer to this area and do not have a large sphere. L/O's hit my office constantly claiming all sorts of things in an effort to receive business. The ones that seem to get it eventually, come in regularly even if they are not receiving business from agents. Willing to be helpful with info and time. Service will always be important to me! Hang in there!

Welcome and congratulations on your featured post!

Olan, I have just finished reading a book titled "Raving Fans" that goes along with your feeling about providing good service today. The book basically says that just providing good or great service is not good enough. It states that you have to create "Raving Fans" through what you do, and to do that you have to set yourself apart. A lot of people out there provide good service, but not many provide the type of service that creates "Raving Fans".

Olan:

I have been a Realtor for over 20 years. In the early years, Realtors always referred the mortgage to their favorite mortgage broker. Over the years we preached to buyers to talk to a mortgage broker before you look for a house. You know check your credit, see what you can afford, find out if you can indeed obtain a mortgage. That education led to most or all buyer being pre qualified prior to even speaking to a Realtor. Most would no longer be referred to your perferred the lender, because they has a comfort level with their mortgage person and didn't want to shop.

We then encouraged them to shop rates, compare closing cost in hopes we could pull them in the direction of our favorite mortgage person. That didn't work. Then came the internet. Tech savy buyers, comfortable with online services with 800#s opened a whole new world for mortgage possibilities.

I have gone from referring every buyer to my favorite mortgage personr to today - maybe one per year, if that. I struggle to have a relationship with any mortgage broker, because I can't promise to send them business.

By the way, I find this with closing agents, as well. Every buyer, knows someone, wants to use someone that was referred to them by a family member, or the mortgage person refuses to close if the buyer doesn't use their perferred closer.

I guess, it's a sign of the times, as they say!

Simple, parsimonious, and very timely post.

Innovative techniques such as co-marketing and the exchange of dead presidents, 'easy' money in real estate courses, lowest rates & fees, 0% commission, marketing other services for free to ensure they use yours, etc, have become waves of growing your business. By definition, if you ask me, and I'm pretty sure I just did, I'm not a traditionalist. But, I believe reputation outweighs innovation in the long haul. If you keep customer service as your core role....in the long run my guess would be you'll be successful. I dig nostalgia.

ABA's are a large part of the "evil" in my opinion. The kickback ('RESPA legal' of course) factor is growing.

I am silly enough to believe exceptional service will always be the #1 reason my company will seperate itself in the end.

Sure we are looking at some technology angles to improve processes, and ways to 'move a market', following the ever changing networking methods, etc... but this is what everyone should be doing anyway. Continuous improvement initiatives should be in everyone's PLAN.

Elaine -

I think you make some great points! I really do believe that Realtors don't have the same control over what lenders the buyers are using. I think many buyers today don't go with their Realtor's favorite lender, but instead are pushed into using Builders' lenders or go online.

I have many (and I mean many) Realtors that swear they try to send me business. Well, after 3 years of saying that I am yet to see the first referral... the funny thing is, I believe them! A few are veterans in the business that I believe to be very honest. A few of them have gotten me a referral here and there, but a lot of them don't work out.

I really feel in this market that a HUGE part of the problem is Builders. They almost all own their own lender, and they use are using stronger methods everyday to steer the business to their lender. In the Charlotte area, new contruction is nuts right now. You can't go anywhere without seeing a new community.

I guess the bottomline for me is that it is wrong when there is a financial disincentive to a buyer for using a lender they prefer.

MAR

2007

Olan,

Thanks for the post. Service is still king in New jersey especially for lenders. All eyes are on the lender to ensure that the the borrower has the proper financing program and that the conditions are satisfied, with the closing docs available for closing without a glitch. We don't see lenders at closings in my neck of the woods

Not bad for your first time out! Good job. Keep writing well-written, thought-provoking posts....

Just as in real estate, we have to keep ourselves in the forefront of the prospects and past clients minds on at least a bi-weekly basis... Mortgage agents need to keep themselves in the forefront as well.

Essentially you are 'teaming' with an agent. Do co-marketing things with that agent. While we do have a mortgage banker that we absolutely love, we are actively looking for another local agent. We do this by watching to see which agents have a good reputation (this comes verbally to us by other people), which ones approach us, which ones want to do co-marketing with us and then, once we start getting leads together, which ones provide the excellent customer service we demand for our clients. How many loans do they close once they've preapproved a client? How hard is it to get the client preapproved (ie, does the agent really know about a multitude of available programs). Does the agent promote our services back to the client?

We've used dozens upon dozens of mortgage agents over the years. Some who have been willing to spend thousands of dollars in co-marketing. One in particular who was awesome to market with, but didnt take care of the clients all that well and did not promote us back to the client. That was a bummer.

No one is going to know about your excellent client service until you promote yourself to them and get them to try your services.

Olan.... I agree with Elaine K. & Jason...... I know you read what Elaine wrote.... The INTERNET.... you need to be for front runner in this. Meaning, getting to those buyers first. You need to push your web site and such.

Did you take inventory per se of the business that you received in 2006 to see where it all came from? Also doing the average marketing of your past clients with newsletters and such? Trust me, it's frustrating for many of us. My business declines some because too many loan officers either over promise or don't know what they are selling.

Example... I had two loan officers that told a client that she was better off with a conventional loan with 10% down, paying PMI than a VA loan with 10% down. I said, I don't think so, let me run the numbers. Both loan officers said they actually ran numbers for both scenarios and that they Conventional deal was better. I ran the numbers and the VA scenario was better by $79 on 1 deal and $103 on the other deal. And I used the exact same points and fees as they did. To me? They either didn't have VA, were afraid of VA not knowing how to qualify, or just don't know how to compare. This is sad, because I lost the client, because she said 2 out of 3 said the same thing. She later realized after talking to some people and running numbers after the fact that I was right. She referred me to her part-time realtor friend who has sent me her sister.

My point... even if the business doesn't come now, because of certain mishaps, go after from those that you even lost. The strong will survive. The only problem, there is always a new bunch of recruits that jump in when it starts to get better again.... this will always happen. Build your past client's list... and keep in touch with each and everyone at least 4 times a year.

Olan,

As a Realtor, I firmly believe in letting my work speak for itself. My main focus of marketing is to past clients, family & friends or aquaintences. If your level of service is "eye popping" as you state then you should be receiving quite a bit of business from past clients (if you've asked for referrals).....why would you care if Realtors are referring to you? That's like me saying I offer such great service as a Realtor, yet the loan officers aren't sending me referrals......my buyer agreement is with my client......not the loan officer. If I do a great job I ask for a reference letter and referrals for future business from my client......and keep following up monthly asking for more referrals. In essence what I'm saying is, focus your efforts on your past clients, family, friends etc. those are the people that know you and can help you the most.

F.P. Profit

P.S. Paying for marketing usually means, you pay the expense of me sending a referral letter to my database about you and I pay the expense of you sending a referral letter about me to your database. Co-paying for generic ads to the general public on a regular basis In my opinion, is a waste of good money.

F.P. Profit -

You probably address my question the best. You believe that GREAT, and I mean GREAT service IS enough to grow your business. I do feel like my service is GREAT, and I do receive quite a bit of past client referrals. BUT Realtors will always play a huge part in my business and I am always trying to network to new ones... I guess the best way to ask my original question is: "Is GREAT service enough for a Loan Officer to get new Realtor Partnerships?"

My best Realtor partners don't ask me to pay for a thing and value the service. I just feel like Realtors like that (in this market at least) are getting harder to find. I am finding more that are looking for the cash or for referrals from me...

But great comment! I certainly believe we should all work towards getting a greater percentage of our new business from past client referrals.

i have found that if we truly give the best customer service every time, we to get referrals and repeat buisness, i have attend many closings and the clients like it as for closing packages? always within the first 3 days.

Christopher,

thanks for commenting, but I don't understand your last statement: always within the first 3 days. ???

You get referrals within the first 3 days after closing???

I like it when the Lo's come to my closings, I feel they are part of the transaction and they should be there to support their clients and in the event something comes up with the title closer, who would need some assistance with the Leander

"BUT Realtors will always play a huge part in my business and I am always trying to network to new ones... I guess the best way to ask my original question is: "Is GREAT service enough for a Loan Officer to get new Realtor Partnerships?"

Such a lack of response by ANY REALTORS concerning ABA's. Sad. I KNOW many belong to partnerships, yet most (none?) will justify how the ABA is IN THE BEST INTEREST OF THE CLIENT IN EVERY CASE.

Olan - I wish you the best.

Olan,

Thank you so much for the post. I'm happy to have found your post tonight because the questions you've asked are questions I've been asking myself for the last month or so. Especially when you wonder why the mortgage individuals who you know is not very good, professional, and are all about the money are getting all the referrals, not showing up at their closings, not returning phone calls promptly..... It boggles my mind... I've always approach this business with the mindset is that if you exceed their expectations you will succeed in business. But in today's business marketplace is that still true??? Is it more of "what can you do for me" or "what's in it for me"? I look at my realtors and other business partners as an important part of business and I work each day knowing my actions also reflects on them especially when I'm working with any of their referrals. Hopefully, there are still realtors out there who do value good ethics and professionalism when their look to work with a good mortgage professional rather than "what's in it for me".

Very good post and I've subscribed to your blogs.

Marcus,

I think you hit the nail on the head. The problem is that as people in our industry take shortcuts and seek the fast money over long term success through service - it hurts us all.

If you do work your butt off, and invest money in hiring assistants (like I do) to provide next level service... it is discouraging to think you have to give up even more money to earn the referrals even when you offer the superior service. My thinking is that in most cases no one is giving up anything but that these marketing fees get passed on to the consumer in higher rates and fees.

My business model has always been to keep my costs low, I build through referrals and service. I have invested my marketing dollars in hiring an assistant and developing systems for better service. It sounds like market forces are telling us to forget service and spend our time and money getting bodies in the door... but my heart won't let me!

Olan.... back again. I had talked about target yourpast clients more so also..... as F.P. Profit mentioned, if you attacked your past clients... as I stated, spend your money on newsletters and anything else that you could do to be in front of them. This is the part that should multiply. As stated, focus on this. The realtors? Ask yourself this question.... how more do you actually want? How many do you have now, that you get steady business from? Some people think you need 15 realtors.... not true at all. What you need is 4 to 5 very good ones. Then break off from there and go after financial planners, lawyers, etc etc.... you need to branch out.

Not to sound negative Olan, but you are dwelling just on realtors. They shouldn't be your prime source. Especially in todays market. Just my opinion though....

MAR

2007

Jeff,

Thanks for commenting again... I value your opinion. I don't just focus on Realtors, although (listen up Realtors!) I do believe them to be the cornerstone of my business and the market. They are still in control of the majority of homebuyers, and I want a great relationship with as many of them as I can find.

Now, I also have a builder account, a financial planner and a huge database that I get business from. However, I don't spend a lot of time pursuing new builders becuase in this market they all have their own lender or just want to send you the loans no one can do. I don't pursue new financial planners because I am loyal to the one I have and we refer business back and forth. I already send a ton of post-closing marketing to my database....

So, that leaves........ Drum roll please, Realtors. I like to constantly prospect for them because I work with some good ones now, but they tend to retire, take vacations, change industries, etc. The man that trained me in this business told me long ago, "Son, everyone out there will tell you to run from Realtors, let them run from them and you just keep running to them!"

I think this post, with its comments, has gone the way of most rumors, debates or discussions. It is has gotten off track. I NEVER said I didn't have enough business. I NEVER said I only got business from Realtors. I NEVER said I didn't get referrals from past clients. THE original question was: Is GREAT service still enough to grow your business???

Even if you have a strong business don't you want to keep growing it??? IF yes, then my question stands... is GREAT service enough?

I understood the question Olan.

Sometimes in AR, when there is no black and white answer, you are left hanging. (I'm still awaiting the responses about ABA's from multiple threads. :^) )

Olan...... you wrote .... "I think this post, with its comments, has gone the way of most rumors, debates or discussions. It is has gotten off track. I NEVER said I didn't have enough business. I NEVER said I only got business from Realtors. I NEVER said I didn't get referrals from past clients. THE original question was: Is GREAT service still enough to grow your business??? "

First off, you lost me when you said this post has gone way of most rumors, debate, or discussions. Can you elaborate on this? It's the only way, to get clarification, in order to give more direct answers and or responses.

2nd... yes, you never said that you never had enough business, but you can't tell that by what you said....it was up in the air.

3rd.... you didn't add in regards to where you get business from. Hence the reason why I said I thought it would be a good idea to add that into the comments, when you replied next time....

One lesson about comments in general. Not everyone reads them. Not everyone reads the whole post written either. Hence why some comments might seem off track. Overall, as much as you think this got sidetracked, I think most of the comments give were given in lieu of the general topic at hand. Many answers were round about ways of talking about what service means to them. Also... trying to give other ideas, because certain things weren't mentioned in your post.

Please...don't take this the wrong way, as Rich Jacobson mentioned, this was a good thought provoking post. And when you do a post like that, it will bring out other thoughts that might generalize or be off the beaten path.... but not really. It might not always answer your one main concern, but others surrounding it.

From what I got from this, for the most part... the answer was that most people have lost control. It's not all about the service upfront. Yes, they say it is... but look at the percentage of people going to lenders and or loan officers before they get to a realtor.... these were answers not exactly relating to your question... but they still had added value. At least that's how I took it.

Jeff,

Thanks for the comments! Don't get me wrong either... I am having a BLAST with this thing. I love the way the comments get off track because it brings out interesting ideas. I didn't mean what I said in a negative way at all - remember that rumor game when you whisper something in someones ear and by the time you finish you get something completely different... its FUN! I think Blogging is similar to that game in a way... you start on a topic and then it seems it branches out...

I just though it would be good to bring it back in a little since we have all shared so much. I think the discussion got held hostage by the whole lender-Realtor relationship for a little while there and I was trying to explain (for me) why that is so important.

But in general, thanks for your schooling. I am very new to this, but I am absolutely having a great time sharing ideas with everyone. I have been telling a lot of people about Active Rain and inviting them to join us!

Rob,

Sorry to leave you hanging... GREAT comment. I agree that in most cases the customer comes up on the loosing end of those... but are we really here to help the customer? (I'm being sarcastic here people)

I think the lack of response you mention is the fear of some in the industry to ask the tough questions of themselves. How much is enough? Why am I doing this? Where do I draw the line?

Thanks for bringing it up!!!

MAR

2007

I wish customer service was enough. It is to get referrals from past clients, but to get the new clients, personality and marketing seems to be king. People have to meet you and like you, then you have to show the customer service side of the business.

MAR

2007

Todd,

I think you are 100% right! I don't the reputation for quality service will grow your business anymore, at least not in this market. It really used to in Charlotte, but now I think we all need to be cutting edge on our marketing.

I think we have to plan on getting a little less out of everything we do (compared to past years) and so plan to do a little more... more marketing, more networking, etc.

MAR

2007

I do try to make it to every closing that I can. I once asked a Realtor friend of mine what I could do that would be most appreciated by a Realtor to thank him/her for being a part of the transaction. He indicated that I could attend the closing and not force him or the escrow agent to answer my questions.

I took that to heart and have been very pleased that I did. It has helped cement relationships with borrowers and several Realtors. It takes time, but as the adage goes, it's easier to get more business out of a past client then to develop a new client.

APR

2007

One thing I've noticed is that a lot of Realtors are very wary of lenders that offer referrals. I've had networking meetings with agents and several of them have said that they are always hearing LOs talk about building "mutually beneficial relationships". That particular phrase tends to send agents in my market running for the door! I am really up-front w/ agents that I meet with. I tell them flat-out that I may not be able to refer as many clients to them as they refer to me, plain and simple. Most borrowers come to me with an agent already in tow and, unless I know that the agent is bad, I leave it alone. I don't want to alienate the agent or my client by suggesting they go with another agent...its just bad business in my opinion. What I also tell agents is that I don't expect them to send me business because they expect freebies, etc. I will help them with marketing if they want, open houses, rate sheets, the works but I absolutely will not take business from an agent when there are other "strings" attached. Its shady, unethical and it leaves me open to bad things down the road.

I think most agents understand this and really just want good service for them and their clients. If you can deliver a smooth closing, good communication and a "warm fuzzy" on one or two deals in rapid succession, most agents will remember you.

I believe "mutually beneficial relationships" do NOT mean 'if you give me one, I'll give you one'. I believe the relationships I build within my circle are extraordinary and do NOT have to provide and end game of business. Of COURSE that would be terrific - but not necessarily the reason to offer help/advice/assistance/etc...

http://activerain.com/blogsview/75625/Do-you-REALLY-offer

I am ALWAYS more than happy to offer my personal and companies resources to others. The MUTUAL BENEFITS are often EDUCATION. Learning something about another's part of the overall industry.

Education in this context often has no price-tag.

APR

2007

I completely agree that the relationships should be based on mutual success and education, helping each other even when you don't necessarily get a referral out of the deal. What I was getting at is that I think so many agents have been "taken" by lenders that promise them referrals, take the agent's referrals and then the agent finds out that the LO has been sending their referrals to another agent that they've known for years.

I think its just that so many LOs are out there hustling for business and are willing to say anything to get business...they don't realize that agents will figure it out eventually and send their business to someone where they might at least have a shot at getting a few buyers.

I personally do a sort of "round robin" type of thing w/ my buyers if they come w/out an agent. I get a feel for the type of person they would work well with and then match that w/ one of my agents. I try to make it as even as possible, but I like to make sure the client meshes well w/ the agent.

MAY

2007

I am located in Maryland and the Lenders I use, attend at least 90% of their closings.

Olan - Fantastic blog! Welcome to AR

Lewis Poretz

MAY

2007

Frank,

Thanks for your comments. Most lenders in our market do not attend their closings. I find it remarkable that most in your neck of the woods do. That is impressive.

Lewis,

Thanks and I am glad to be here. I am inviting new people all the time!

JUN

2007

Howdy Olan

Thank you, for this very good blog post you have done here.

JUN

2007

Olan,

After readinfg all the posts above and your comments my input is this. You seem to have a system that every Realtor would love. You provide continual updates, inform the client's, go to closings,etc...

The most important thing you or any of us who provide great service to our realtors and borrowers is that there will be lenders who will pay for co-advertising, and spend more time getting the realtors leads then getting their own, but in the end will these lenders provide the service you do? When all is said and done, these realtors will realize that co-advertising with a lender whose service is mediocore will end up costing them further referrels. Even though sometimes it feels as if our services are being bid on as if we are on Ebay, there are those realtors who realize a good thing when they have it. Those are the ones to concentrate on, because they will be the ones to refer you back to the " You bring me leads and you'll get my business."

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?