Does it seem like every mortgage loan officer in the business is constantly asking real estate agents for referrals.
(It must seem that way to real estate agents and other loan officers.)
Asking agents for referrals could be setting yourself up to fail.
Almost every loan officer tells agents the same story..
* “You should give me your referrals because:”
* “I have the best rates!”
* “I provide the best service!”
* “I have the most experience!”
* “I have the most experienced staff!”
* “Yada, Yada, Yada”
Sound familiar?
If that is how you are trying to get an agents business it might be more fun to beat you head against the wall.
Why is this not going to work? what is wrong with the above statements?
All of the reasons listed above list the features you provide to the borrower / buyer but they do nothing for the agent in a direct way. Because it does not answer the question that all clients want to have answered. What is in it for me?
Although you are talking to an agent to get the referral to the buyer do not kid yourself into thinking that your mortgage services are so important to the real estate agent that you do not have to demonstrate to the agent what is in it for them.
Here area few questions to think about.
1. Does the agent earn any additional income by referring their clients to you?
2. Does the agent take on any additional responsibility to the client by referring someone to you?
3. Can their client find financing without their referral?
It’s an open book quiz. The answers are No, Yes, and Yes.
Agents receive no additional income by referring a client to you and they do take on the added responsibility of being the person who recommended you to the client.
That is a good thing when everything goes smoothly – but how many transactions have to seen where everything goes smoothly.
Agents can opt to take the safest route by not referring someone and leave the task of finding financing up to the client. If the client wants the property It’s going to happen with or with out the referral.
The real estate agent is one of your most important client groups. They are the client you need in order to meet the borrower / buyer. In many ways the agent is more important.
Why? Because the agent – if you have a good referral relationship and you have demonstrated that you add value will be an ongoing source of referral business.
Borrower / clients can also be a referral source but let’s face it how many friends and family contact referrals can you generate in a 1 years period from a borrower/client? The answer.. not as many as you could get from a productive real estate agent that sees you as an added value partner.
Until you start providing added value to the agent’s business you will have an up hill battle getting their attention and their business.
Don’t fool your self into thinking that you are doing something special for an agent by providing quality origination services. That is your job that is what you are expected to do.
Think out side the box and find ways to directly help the agents that you want to work with. Figure out how to go the extra mile. figure out how to add value to your potential referral partner’s day and you can stop asking for their business.
Are you a loan officer trying to build referral relationships with local real estate agents?
Would you like to know about a better way?
Referral Marketing, Loan Officers, Mortgage Marketing, Loan Officer Branding
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