There’s always something to howl about.

Why Don’t REALTORS Solicit Lenders For Buyers?

REALTORS constantly solicit banks and mortgage lenders for REO business.  Why isn’t the producing REALTOR, as a matter of course, soliciting business from loan originators?

I posed this question at Unchained Phoenix ’09 and you would have thought I asked the REALTORs to walk on coals…at first.  A few bright agents listened to my reasoning:

  • I talk to lots of people and do a FAIR job at managing my database.
  • I subscribe to a service that notifies me when a past client’s home is listed (so I can jump on the new loan).
  • I lend nationally although that doesn’t matter.
  • I don’t charge a referral fee for relocating buyers; I just want their new loan.

Agents often consider themselves to be the center of the relationship but most don’t manage that relationship, post-closing, very well:

In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a “for sale” sign. Six other categories accounted for smaller shares each.

The light bulb went off for Cindy DiCianni when I suggested that she look at last year’s business to discover the source city; she helped nine San Diegans settle in Kansas City in 2008.  She promptly added me as a “referral contact” to her database.  Alice Held did the same, promising me an invitation to her Holiday Party.

Teri Lussier asked me about this in an e-mail today:

Lenders court Realtors. Do Realtors court lenders? Often?

Of course we court REALTORs and REALTORs never court us…NEVER.  I think that’s really dumb.  Forget that I’m “just the lender”.  I’m a “person” who has influence.  I’ll most likely encounter a relocation to Dayton (or Kansas City) once every three years.  if you’re tryng to close 24 transactions a year, that means you should market to 75-100 loan originators, around the country.

What would a lender like/need/want in order for me to be their go-to Realtor of choice?

If you’re in San Diego, a monthly phone call wouldn’t hurt.  If you’re from Dayton, a call once a quarter would be great.  Annually, at least.  Send me your recipes, too.  I’ll throw them out but you’ll own 17 seconds of “brain time”, once a month.  Nobody from Dayton markets to me so those 17 seconds will be a HUGE victory for you.

What makes you shoot your clients out to certain Realtors more than others?

Presence, that’s all.  Comment on my blog or Facebook page.  Answer once of my questions on LinkedIn.  Send me a recipe and call me a few times a year asking if I know anyone moving to Dayton.  Do that and you’ll get the three relocation buyers a decade I refer to your city.  Sean Purcell calls this Epiphany Marketing; I don’t need you until I need you but when I need you, you better be on my mind.

Call me first and ask permission to market to me. Prove to me why being nationally networked with competent real estate professionals is in my best interest.  Do that with 100 loan originators and it’s game over; you win.

The guy or gal with the most friends wins…always.

PS:  As always, some will resist  REALTORS think the “lenders begging for business” paradigm is sacrosanct.  That’s okay. You (readers) are different.

PPS:  Wondering if it works?  Ask Jeff Brown.