Without a dog in the hunt

By
Real Estate Broker/Owner with Pareto Realty TN #251071

Real estate sales professionals are the “Quarterbacks” on the home sale team.

Somewhere in the neighborhood of 42 people participate in every transaction – Buyers – Sellers – Lenders – Appraisers – Title Companies – Contractors – Inspectors and the list goes on including all of the staff of all of these players.

So . . . technically, every transaction is its own 42ish person organization (team). All of these people have crucial functions in this important, wildly complex endeavor. One dropped ball by ANYONE at ANY time could kibosh the entire deal resulting in home buyers not owning that house they love and Sellers not being able to move on with their new lifestyle in a different house. Indeed, the stakes are HIGH!

Most of the these transactions originate with REALTORS. Home Buyers and Sellers “hire” these professionals as exclusive representatives on a contingency fee basis . . . The REALTOR doesn’t receive compensation until or unless the transaction CLOSES and FUNDS. That’s right . . . a REALTOR could work with a client for untold hours “invested” over a period of MONTHS and not make a dime.

Is there any other “profession” that works this way?

It’s the REALTORS who typically refer many of those 42 players aforementioned to their clients. Many of these “vendors” are receiving most of their business from a select group of REALTORS and literally do not need to pay for any marketing for new business.

A common frustration in our industry is that these referral “relationships” are largely “one way streets” . . . Other than a “thank you”, lenders and other vendors seldom reciprocate by referring new clients to REALTORS. When asked why, the response often is along the lines that they seldom run across unrepresented buyers and sellers (because they are not having to market for them) and when they do have the opportunity, they have too many REALTORS sending them business to be able scratch everyone’s back with occasional referrals . . . hmmm.

RESPA allows Lenders to participate financially in co-marketing with REALTORS. The guidelines are clear and absolute. ANY Lender can “support” a REALTOR by helping defray marketing fees which lead to more leads for the REALTOR thereby creating more business for the . . . LENDER.

I think it’s nothing more than “good business” for these co-marketing pursuits because everyone who has a dog in the hunt WINS!

So . . . why are so many lenders so unwilling to be contributing team players?

Please note that I did not mention any absolutes . . . some lenders DO very generously (within RESPA rules) support their REALTOR “partners”.

The bottom line for me is full of candor . . . We all expect everyone in our rolodex to do what they do well, timely, and professionally. That’s the baseline . . . I think it’s fair to expect more than baseline by bringing a dog to the hunt – Full participation = Partnership.

Published by Barry Owen 

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love 

Posted by

Barry Owen

Founder
Principal Broker
Pareto Realty
Nashville, TN

615.502.2080
www.paretorealty.co  
Call me: 615-568-2123
email me: barryo@comcast.net

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Comments (11)

Joseph Doohan
Joseph Doohan - Las Vegas, NV
I offer business strategy advice for realtors

Sales are what makes the world go round in real estate. Having a great sales team is what makes a really profitable real estate company!

Jan 29, 2020 08:52 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

"Somewhere in the neighborhood of 42 people participate in every transaction – Buyers – Sellers – Lenders – Appraisers – Title Companies – Contractors – Inspectors and the list goes on including all of the staff of all of these players." 

While I knew there were many participants in a home sale transaction, I hadn't really stopped to count them.  The number is a testament to how important professionalism is in our realm.  All those entities need to communicate and operate as a team, in order to obtain a successful close!

Jan 29, 2020 11:04 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Barry, on having this blog FEATURED in the Old Farts Club group!  

Jan 29, 2020 11:05 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Barry - teamwork has an expanded definition after reading your post.  

Carol Williams - another candidate for SCS Second Chance Saturday.  

Jan 30, 2020 04:15 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

The trickle-down economic impact of each transaction is significant, isn't it Barry?

Jan 30, 2020 09:11 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Agree about the congratuations Barry Owen . I always think in terms of a wheel. For me the buyer's agent is the hub of the wheel and the conduit for the majority of interactions.

Feb 01, 2020 06:48 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Barry. I never consciously thought about this and probably never got a referral from a home inspector. I did get them from attorneys though.

Feb 01, 2020 07:04 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

We have got a few referrals from our team of players. However, we are generally the folks generating most of the business. 

Feb 01, 2020 07:28 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Barry Owen - what you say makes perfect sense.  The sphere of Realtors, Lenders, Title, Attorneys is a strong one when everyone is a giver.

Feb 01, 2020 07:30 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

As Hillary Clinton once said, it takes a village. Everyone needs to be at their best.

Feb 01, 2020 03:45 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

There really IS a pretty significant team effort in any real estate transaction, with a wide range of roles. You raised a good point about referrals from vendors and other members of that team...it's pretty rare!

Feb 02, 2020 05:00 PM