Realtor Newsletter

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Learn Why Prospecting is a Lot Like Dating

Sales can be a lot like dating. Start using these interpersonal skills and you’ll be sweeping prospects off their feet.

 

Mortgage Talk

What is the APR?

When a mortgage rate is quoted, you will also see that the APR, or Annual Percentage Rate, is quoted as well. It is higher than the stated interest rate, and sometimes much higher. What exactly is the APR?

The APR is an expression of the effective rate of interest that will have to be paid on a loan. It is taken as a percentage and calculated as a yearly rate. It is usually different and higher than the advertised rate because it includes one time fees and other costs which help to determine the total cost of borrowing. It is a measure to compare different loans offered by competing lenders taking into account both interest rate and closing fees. It is essential to know the total amount of fees involved as different lenders have different set of fees included in the APR. As a rough guide to calculating the APR, first deduct the fees from the loan amount. Then calculate the interest rate on the actual loan payment amount instead of the actual loan amount. The amount will be a number close to your APR.

To learn more about how to calculate the APR, you can use this APR Calculator. Or, you can call my office if you still have any questions.

Referral Fees and RESPA

Are you getting any referral fees from a mortgage broker or loan officer? Are you paying referral fees to anyone who brings you business? If so, you are violating RESPA's provisions on referral fees.

To read about an example where a real estate agency was found guilty of letting its agents receive fees for referring mortgages to a specific company, click here.

That being said, can you indeed earn a fee for referring a mortgage? Not exactly, but you can EARN a fee for services performed in connection with a mortgage. According to RESPA, you must do 6 out of the 14 steps involved with originating a mortgage. My company would be willing to pay you a legal fee for service if you bring mortgage deals to me. Here are the 14 steps:

(a) Taking information from the borrower and filling out the application;

(b) Analyzing the prospective borrower's income and debt and pre-qualifying the prospective borrower to determine the maximum mortgage that the prospective borrower can afford;

(c) Educating the prospective borrower in the home buying and financing process, advising the borrower about the different types of loan products available, and demonstrating how closing costs and monthly payments could vary under each product;

(d) Collecting financial information (tax returns, bank statements) and other related documents that are part of the application process;

(e) Initiating/ordering VOEs (verifications of employment) and VODs (verifications of deposit);

(f) Initiating/ordering requests for mortgage and other loan verifications;

(g) Initiating/ordering appraisals;

(h) Initiating/ordering inspections or engineering reports;

(i) Providing disclosures (truth in lending, good faith estimate, others) to the borrower;

(j) Assisting the borrower in understanding and clearing credit problems;

(k) Maintaining regular contact with the borrower, realtors, lender, between application and closing to appraise them of the status of the application and gather any additional information as needed;

(l) Ordering legal documents;

(m) Determining whether the property was located in a flood zone or ordering such service; and

(n) Participating in the loan closing.

Now, you can see that the items highlighted in red are things that you are either doing now or that you can do without expending too much effort. Call me to see how you can legally earn additional revenue on the deals you do!

 Ever wonder why meeting new clients is so easy for some agents, but so difficult for others? Have you ever considered why some of your colleagues seem to get repeat business and referrals naturally, while others struggle to keep their clients happy throughout the transaction?

The secrets to success may lie in the interpersonal skills that come into play in the dating arena. To improve your chances for success with prospects and clients, pay more attention to the details that can make or break the relationship. In other words, approach sales like you would a first date.

Here are 10 dating rules that you can apply to building your next client relationship.

Rule 1: Desperation is Not Attractive

Everyone has known the guy who is so desperate for a date that he’ll do anything, date anyone. It certainly doesn’t make the girl he’s pursuing feel special.

The same is true in real estate. If you can approach prospects with the perspective that you don’t need the business, but you’d like it, then they are much more likely to want to work with you.

Rule 2: Confidence is Key

Women want to date men who are confident, and vice versa. People find it reassuring, comforting, safe.

Likewise, prospects want to work with an agent who’s confident. If you think you know what you’re doing, and you’re confident of your abilities, your clients will pick up on it. But be careful — just like in dating, when confidence rolls over into arrogance, you’re sidelined for being a jerk.

Rule 3: Make Them Know You Want Them

In the dating world, it’s important to let the person you like know that you like them. But there is a balance you must strike: You have to be interested, but not too interested. And, you have to be willing to walk away. If they’re not interested enough to chase you, then perhaps they weren’t your true love after all.

The same is true for prospects. Show them you’re interested in working with them. Make them notice how wonderful you are. Sweep them off their feet. Then let them know that it’s their turn to make the commitment back to you — in the form of a contract. If they won’t sign, then they aren’t your clients after all — walk away.

Rule 4: Listen More Than You Talk

When you go out on a first date and you monopolize the conversation, the chances for a second date grow slim. No one wants to spend time with people who are so self-absorbed that they don’t even ask a few questions and listen to the answers.

With prospects it works the same way, although on a slightly different level. Prospects don’t expect to be in a personal relationship with you. So when you ask them for information about themselves, they will give you very little initially … and open up more as you ask additional questions.

By the time you get to the end of the conversation, if you’ve done your job right, they feel like they have a connection with you — which they probably didn’t expect to have after just one conversation.

Rule 5: Image is (Almost) Everything

You wouldn’t leave for a hot date without making sure you looked your best. You’d also probably grab a breath mint before you showed up. And yet, some agents think that they should do less for prospects.

Reconsider going out for showings in jeans or a T-shirt, or having garlic for lunch and then not grabbing a mint, or picking up buyers in a car filled with old soda cans and fast food wrappers. You can destroy your chances with a prospect by not taking a few minutes to primp. It doesn’t take long — and your professional image depends on it.

Rule 6: Go Where the People Are

People who sit at home night after night don’t get many dates. Why? They’re alone and not someplace where they have the potential of meeting someone.

By the same token, practitioners who sit in their office waiting for the phone to ring are never going to meet the prospect of their dreams. Get out! Go do something! Preferably something fun, where you’ll be having a good time and be in a good mood.

Rule 7: Nobody Likes a Whiner

No one wants to hear all the details about how your dry cleaner lost your jacket or your accountant messed up your tax return. On a first date, complaining is off-limits. When you whine, you’re not attractive. In fact, you’re decidedly unattractive.

The same is true for your clients and prospects. It’s not their fault if you had a bad day. Even if you listen to them vent their frustrations, it doesn’t mean it’s OK for you to expect them to listen in return. Remember, you’re being paid to listen and respond to prospects' concerns. When you're with customers, keep your problems to yourself.

Rule 8: Never Put Other People Down

When you gossip about a mutual friend on a date or insult someone, you lose points. Similarly, if a prospect is trying to decide between you and another agent, never say anything bad about the other agent. Instead, talk about the value that you bring to the transaction and the things that you do differently from your competitors.

If prospects are unhappy with a competitor of yours, allow them to vent, but resist jumping in with your editorial comments. Let prospects make their own comparisons.

Rule 9: Always Call

The best way to make someone feel like you didn’t like him or her is to fail to call after the initial meeting. Don’t keep someone waiting. It’s rude.

By the same token, when you’ve just listed new clients, call the next day. In this case, it’s not a question of whether you like them or not, it’s a matter of whether you’re going to take them for granted or not. They are afraid that you’ll sign them and then disappear. Put them at ease by proving that you’ll keep in touch.

Rule 10: Be Yourself

Just like your perfect mate, the best clients are people who like you just the way you are. But they can’t do that if you never show yourself. If you try to be someone who you hope they’ll like, you never give them the opportunity to like the real you. The charade can’t last forever.

Be yourself and do your job extremely well. That’s what counts in the long run. And by doing so, you may just find a perfect match!		  

About My Services

I would like to help you with the task of providing financing to your clients. To do this, I am able to do the following for you:

  • Be available when you have an Open House to help greet buyers
  • Help explain the various financing options and mortgage programs your buyers have access to
  • Pre-qualify any buyer who has not yet talked with a mortgage company
  • Determine the largest mortgage for which your buyers qualify
  • Resolve any issues on your clients' credit report that can affect their mortgage.
  • Obtain a loan commitment from our lenders
  • Provide your buyer with a Good Faith Estimate of closing costs
  • Determine any seller assist that a prospective buyer may need and qualify for
  • Co-ordinate all aspects of settlement including title search, appraisal, and other services

At Your Company Name, we offer mortgages for most buyers, including ones who are self-employed or who have damaged credit. We have lenders who offer 100% financing meaning no down payment for qualified buyers.

We also offer mortgages with start rates as low as 1%, making it easier to get a buyer into a home.

If you have any questions about how I can help you get financing for your clients' homes, please call me at Company Phone #.