Estate Agents/Mortgage Broker Help

Discussion in 'General Business Forum' started by Bigfella123, Feb 13, 2012.

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  1. Bigfella123

    Bigfella123 UKBF Newcomer Free Member

    5 0
    Hi all,

    Only recently came across this forum and looks like hopefully I will get some decent advice.

    Ok - so we currently have a small, independent mortgage brokerage with 4 sellers. We have traded for 4 years and are now looking to take the next step and grow.

    We currently have a good, local client bank and pickup all of our business from recommendations although recently we have been buying leads but this is a new initiative.

    What we really want is to try and have contact with the local "movers" and "buyers" prior to them offering on a house.

    Now one easy solution would be to start our own Estate Agency and capture the contact then.

    Downside of this is I think we lose our independence perception, as clients would "think" we were Estate Agents providing mortgages. Additionally, we specialise in mortgages and are experts in the field rather than trying to be a jack of all trades. It does not help that traditionally the Estate Agent mortgage brokers/advisers are some of the poorest in the field..

    So we have a couple of meetings setup for early next week with some local Estate Agents (not chains) to attempt to sell our services - and this is where I would like some advice from you good people.

    Obviously our pitch will be determined by whether they currently have an employed advisor or use another mortgage brokerage.

    What do you all think (or especially if you are either end of a deal currently) on the following (from an EA perspective)


    • Agreed monthly payment (irrespective of volume) and we would take all leads as soon as they come through the system
    • Fixed amount per lead/contact details
    • Fixed amount per appointment booked
    • Income split on mortgage proc fee and insurance products, given that we have a very high cross sell rate
    Any other practical solutions welcomed, just want to get a feel on the best way to attack the meetings next week.


    Thanks in advance.






    Steve
     
    Posted: Feb 13, 2012 By: Bigfella123 Member since: Feb 13, 2012
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  2. tony84

    tony84 UKBF Big Shot Free Member

    5,492 957
    Hi,

    Im trying something similar, i wish you luck with it.

    Ive only just become self employed so ive been harassing all the local estate agents to see if i can get anything, if i get a reply its usually a no. Even following up with a call its impossible to get past the receptionist.

    Ive spoken to 1 company and offered them a percentage of any sale or a fee for the lead i didnt get much further so i cant give you an idea as to which they prefer sorry.
     
    Posted: Feb 13, 2012 By: tony84 Member since: Apr 14, 2008
    #2
  3. lockyer

    lockyer UKBF Ace Full Member

    1,199 194
    A while back there was a local mortgage brokers who market their "mortgage passport".

    Basically they advertised to local home purchasers a passport that showed how much of a mortgage they had been pre approved for so buyers and estate agents knew they were serious
     
    Posted: Feb 13, 2012 By: lockyer Member since: Oct 27, 2008
    #3
  4. Greg_Thomson

    Greg_Thomson UKBF Contributor Free Member

    51 7
    Hey Bigfella

    I also run a small mortgage company so will help where I can. I think you will find the problem is that most of the larger chains employ advisors directly. You have already pointed out that these tend to be the worst advisors in the industry. Probably because of the low salery and long hours. Anyone worth their salt in this industry would work elsewhere.

    When I set up approx 3 years ago I approached a lot of estate agents however getting in front of a decision maker was not easy. The mortgage industry has changed a lot over the last 5 years and more and more companies are taking on mortgage advisors on a self employed basis rather then employing staff directly. A lot of the companies then expect the new staff to provide their own leads which in turn leads to lots and lots of mortgage brokers banging on estate agent doors.

    My personal approach is simple. Dont get involved in selling on price. Everyone goes in offering 40% - 50% commission split and lets face it there will always be someone who will undercut you. I would always sell yourself on service - you can help the estate agents stand out from the other poorly run companies in the local area. I think for the estate agent being able to refer the business to an independant company is a great selling point. Especially if you have good office premisis yourself (as the majority of self employed advisors work from home). The other reason to sell on service is that a 25% commission split with you could earn them the same as a 50% commission split with a different advisor (if you can convert well and cross sell).

    Personally I would not pay per lead. I know someone else who does this and he gets lots which are literally useless and were just passed over to earn the agents £5. I pay a set amount per completed case and do not include insurance in this. The main reason for this is because there are a lot of clawbacks for insurance and I like to keep things simple.

    What I would say worked well for me was to get a trial with a large company I work with at the moment. I got a few leads some of which were good and some were not so. When they think they have lost a sale as a customer cant get a mortgage ask them if the customer would be happy to speak with you. It only takes you saving the day a couple of times and they will stick with you regardless of who else knocks on their door. I know the company I deal with has mortgage advisors knocking on their door day in day out. If I had sold myself on price im sure I would have been out the door a long time ago. Selling on service means that it doesnt matter what anyone else offers them. As long as I keep them and their customers happy, the leads come to me.

    Sorry to ramble on but also just another bit of experiance. Some years ago I worked for a large mortgage brokerage. There were a couple of collegues who were sent out for a few months with a sole aim of getting estate agent introducers. There were supprisingly sucessful with the volume of companies that signed up. I think the commission split was 20% - 30%. Having said this there were actually very few leads generated from all of these agreements. I think small local companies want to deal with other small local companies. Nurture the relationship properly, set up regular meetings with the agents to keep fresh in their mind. Pop down for coffee with lunch every couple of weeks. Those kind of things may help.

    Good luck anyway with your meetings. Hopefully it will turn into something profitable for all parties.
     
    Posted: Feb 14, 2012 By: Greg_Thomson Member since: Dec 4, 2011
    #4
  5. Jackie606

    Jackie606 UKBF Newcomer Free Member

    81 9
    Hi
    The note from Greg sums it up, service is what is lacking and fees only materialise when the case is closed and this is 75% of the time this is due to the service quality. where are you based?
    Jackie
     
    Posted: Feb 15, 2012 By: Jackie606 Member since: Jan 27, 2012
    #5
  6. Bigfella123

    Bigfella123 UKBF Newcomer Free Member

    5 0
    Greg - great advice thank you.

    To be honest this would have been on the route we were on, as we tend to currently work in the hardest area of finding mortgages. Post Bankrupts, IVA's, difficult to prove income and damaged credit sectors so this would stand us in a good position.

    Unfortunately, as illuded to not all of the Estate Agents are that forward thinking and cash is king.

    I am hopeful as one of our meetings is with an ex-mortgage broker, who branched off to be an Estate Agents and therefore may see the bigger picture.

    We are based in Essex primarily, although use an office in the City once a week to see clients in the meeting room at our Accountants offices.

    I will keep you posted and thanks again people...
     
    Posted: Feb 15, 2012 By: Bigfella123 Member since: Feb 13, 2012
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