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Mammoth $26,550 In Lost Comissions!

By
Mortgage and Lending with Tim Davis

This is a true story of a Realtor who referred me a buyer a few years ago. The buy purchased a home for $250,000 and everything went smooth. The deal closed on time and everyone was happy!

About 8 months went buy and the buyer called me to apply for a new loan. They had decided that they had moved to far away from family and were going to move back closer. They Had listed their home, got a contract, found another home and were ready to close in 30 days. The new home was $350,000.

I said "great I will call (the Realtor from before) and send him the loan approval letter"

That is when it hit me like a ton of bricks! They said "That was his name"

Curious, I asked what they meant. They said they had tried to remember the last Realtor but couldn't so they chose someone new to represent the sale (double side 6%) and the buy (one side 3%). That is $26,550 in lost money! Could you use that income? I sure could!

They forgot the agent but remembered me. Why? Because I have an iron clad post closing follow up system and the agent did not.

Too many agents see this as a transactional business and not a residual business. That is why he lost $26,555 in cold hard cash!

Remember : IT IS NOT A MATTER OF IF THEY WILL BUY OR SELL, ONLY A MATTER OF WHEN!

Do you have a follow up campaign? Do you keep in touch with your database? If not, please don't try and figure up the lost commissions, you will just get discouraged.

Just another coaching tip from your friendly neighborhood coach!

Don't know where or how to get stated? Email me at tim@coachtimdavis for more information on a hiring a coach to grow your business!

Now, the cowboys are coming on so I must sign off for the night!

Ashley Drake Gephart
Drake Intel Group - Albuquerque, NM
Tim - Big Oops on the agents part. I have been in the middle of a transaction and the other agents client couldn't remember his phone number or website while he was traveling. But he remembered my website and gave it to his loan officer. He certainly won't remember this agent after closing without some solid follow-up. I bet he still remembers me. He is on my follow-up list.
Sep 23, 2007 12:22 PM
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
Staying in touch with former clients is essential for a successful business.  On average people move every 5 years...
Sep 23, 2007 12:25 PM
Julie Neerings~Lifting Hearts ♥ Building Dreams~
Agent Referral - Salt Lake City, UT
Ouch!  That's got to hurt.  Thank goodness I've had a mentor who put me on the right track to keeping in touch with my past clients at a minimum of 1X per month through mailers, phone calls and contest.  This is a great post.  I hope a whole lot of people read this.  
Sep 23, 2007 02:46 PM
Andrew Trevino
ADT Real Estate - Wilkes Barre, PA
Wilkes-Barre Homes For Sale

Tim,

That agent doesn't even know that he lost the commission. That's the sad part, because he still won't learn the lesson. I always make sure to follow up with all of my past clients on a regular basis. You never know when an opportunity will arise. Thanks for sharing the experience for the rest of us to learn from. I'm sure this will be fresh in more people's minds now.

Sep 23, 2007 05:09 PM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI
Tim, the non follow up isn't what is important here.  If in fact only 8 months went by and the client didn't remember the name of the agent, that agent didn't leave an impression the client to begin with.  He or she didn't spend enough time with those clients, didn't bond with them, didn't didn't didn't.
Sep 23, 2007 10:28 PM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents
Ouch, ouch, ouch.... What a story.......  Go 'Boys!!!
Sep 23, 2007 10:41 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
An eye opener about how important is to keep your name in front of your customers! Thanks for doing the math lesson!
Sep 24, 2007 12:48 AM
Dale Campbell
Virginia Real Estate - Mechanicsville, VA
Wow! - Terrific reminder to keep marketing to prior clients!
Sep 24, 2007 02:38 AM