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Selling Homes – Isn’t That Enough?

By Randy L. Prothero

Real Estate Agent with eXp Realty 2021016812

February 22, 2008 09:36 AM

House For Sale

Yesterday I attended an awards luncheon. On of the things that got my attention was the venders who were at the event. There were a couple of lenders present, who were owned by other real estate companies. First of all I would never use or recommend their services, period.

I am real glad my company does not own a mortgage company, an escrow company or any other service company. The conflict of interest is too tremendous. If I ever leave the company I am with I would not consider an office that also owns and promotes their own lender or escrow company. I can not imagine any added benefit for the real estate agents, just a lot of additional liability.

I know many will disagree with me on this subject. That is OK there are companies just right for them. For me selling homes is enough.

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Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Derek - The other option is to provide the highest level of service to their clients and charge appropriately.

Steven - That would have kept me from ever joining them.

Feb 24, 2008 05:15 AM

Derek Bauer's, www.DoorToDreams.com Door to Dreams Home Selling Team

Real Estate One - South Lyon, MI

Randy - Of course the best service should always be provided ... that goes without saying, I think.

Feb 24, 2008 05:50 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Derek - I think it needs to be said. I run into many companies and agents who work on price and not service.

Feb 24, 2008 06:09 AM

Gary J. Rocks

Juba Team Realty - Jefferson Township, NJ

Randy

I agree with you, Brokerages put a lot of strain on their agents by making it mandatory for you to introduce your clients to their Mortgage reps. I once worked for a company that if the mortgage rep didn't sign off on your file that they interviewed your client, you didn't get paid!

Feb 24, 2008 10:28 AM

Derek Bauer's, www.DoorToDreams.com Door to Dreams Home Selling Team

Real Estate One - South Lyon, MI

I think many Brokers forget ... IT VIOLATES RESPA TO MAKE AN AGENT USE A CERTAIN VENDOR. Gary, and SO many others that commented here today - you may want to remind your Broker they are/were breaking the law. Even though we are encouraged to use our in-house vendors, we are not stiff-armed to do so, and we are certainly not forced to do so.

Feb 24, 2008 10:56 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Gary - That would be an easy decision for me. See ya!

Derek - I like not having them in the first place.

Feb 24, 2008 05:14 PM

John Cobb, REALTOR - Warner Robins Georgia Homes for Sale

Fickling & Company - Warner Robins, GA

Subdivisions, Foreclosures, Real Estate, New Homes

I work at Coldwell Banker SSK Realtors in Warner Robins GA and we have an in-house lender, but it is not mandatory that we use them or even introduce them - which would be called steering. I like having an in-house lender that is available if want to use them. I have used our in-house lender a few times and they were great! It is nice to have someone available that can work up a net sheet to help the customer compare rates and payment information to help the customer find the best deal for them. As long as the lender is local, reliable, and fast it doesn't matter to me which lender they use. Having an in-house lender can be a positive thing to have in your office....

Feb 25, 2008 06:19 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

John - The loan officers I work with the most are fast and real good at what they do. I have found it a plus not having the in-house lender. I have made a business decision that I would not work with an in-house lender or hang my license where they have have and push one. Those who use them need to weigh the liabilities as I have and make their own business decision.

Feb 25, 2008 06:38 AM

Sandra Carlisle (Ayers)

Berkshire Hathaway California Properties - Newport Beach, CA

Real Estate Marketing & Sales

We have in-house escrow, title & a lender. It's encouraged to use them but you aren't given grief if you don't. The lender we have now I found when he was with an outside company and I thought he would be an asset so I referred him and he chose to make a move. I also have other "outside" lenders that I can recommend but my buyers have always chosen him after an interview. We also have a very ethical and hardworking escrow team and title company that were told they need to earn our business. And they have but I think this team is a rare find. Most deals where I've had to use other companies in house people have been some of the most difficult deals and worst title, escrow and lending experiences which is why I love my team. We aren't given any type of incentive, other than great service, but again, I think they are an exception to the rule.

Feb 25, 2008 11:33 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Sandra - I the past I never recommended a counter offer for an escrow company. After the worst one ever from an in-house escrow company for a large real estate firm, I have had to rethink that. An escrow is supposed to be a neutral third party. They can't be neutral if they are owned by the real estate company.

Erica- I have two potential and one current client who all got less than desirable mortgages when they bought new construction and was financed by the developers lender. No one looked out for their interests when they purchased directly with the developer and their in-house services. The ARMS are kicking in and the hard prepays are trapping them. I can say that not one of my buyers is in the same situation.

Feb 25, 2008 06:30 PM

Vickie McCartney

Maverick Realty - Owensboro, KY

Broker, Real Estate Agent Owensboro KY

I think that we as Realtors should always give at least 3 options for any loan officer,inspector,appraiser,insurance company ,etc. so that the client picks who they are comfortable to work with You know that the mortgae companys and title ecompanies don't tend to stick their necks out to refer to just ONE particular realtor either. It's called CYA.

Feb 26, 2008 10:59 AM

Joe Davis

Indiana Commercial Realty - Crown Point, IN

List to Last! Isn't that the saying? You got a good method. Go with it

Feb 26, 2008 03:31 PM

Brian Kreick

Willinger Real Estate - Wenatchee, WA

I agree with you. I have never recommended a lender from a mtg company that was owned or associated with my real estate office. I believe the buyer needs more choices in lending.

Feb 26, 2008 03:49 PM

Ton A. Ali

CORNERSTONE GROUP REALTORS - Louisville, KY

Realtor - Broker ABR, Eco Broker Certified

I understand where you're coming from, but our company does own a lender that is a division of Wells Fargo. They have a penetration rate of about 30-35% and are in the top 5 in the country for customer service. It is great to have a lender right there when you have a client in the office that sees the light. Also, they do some interesting things to entice us. If we use them, our contact information is actually printed on the customers statement every month. they see you and your information 12 times a year with you having to do anything. We also disclose our relationship in a full page form because there are several other companies that we own. We don't own an appraiser. I see that as a huge problems as far as liability.

Feb 26, 2008 10:52 PM

Robert Arnold

Brooks Prime Properties - Huntsville, TX

Lake Livingston Real Estate

I could not agree with you more and from what I have read so does everyone else.

Feb 27, 2008 06:29 PM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Vickie - I think the number of people you give the client is not as important as the quality. If you give three names and the one they use does a bad job you have more liability than if you gave them the name of one great loan officer, etc., who took good care of them.

Joe - Thank you

Ton - That is a business decision we all have to make. I think my decision on that subject is real clear.

Feb 28, 2008 03:16 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Robert - Not everyone agrees with us, but definitely the majority. It is a dangerous road that some choose to travel.

Feb 28, 2008 03:18 AM

Paul Howard

Cherry Hill, NJ

Paul Howard Realty, 856-488-8444

I believe the conflict exists with these companies. How could it not? To some buyers it makes the process SEEM easier but in reality that is an illusion.

Feb 28, 2008 07:36 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Paul - I don't see how it makes the process any easier. I agree at best it may be an illusion.

Feb 28, 2008 07:51 AM

Max Kim

MetroPointe Group LLC. - Newport Beach, CA

Hi Randy,

I dont' know if you remember me, but I met you at the NAR convention last year at the Active Rain party!

I hope your business is doing well! I just finally started doing blogs, so please let me know what you think about my blogs when you have time!

Feb 28, 2008 10:55 AM

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