WHY PROSPECTS SHOP AND HOW TO MAKE THEM USE YOU.

WHY PROSPECTS SHOP AND HOW TO MAKE THEM USE YOU.
I had a very interesting phone call the other day from a client who was referred to me by his accountant. He owned a home with his girlfriend and they had just broken up. He need to refinance and told me who had referred him.

The conversation went much like all conversations go with me asking him the value of the home, the amount of the mortgage(s), the current rates. I also asked him about his income , his credit , his debts and his goals.

THEN HE ASKED THE DREADED QUESTION.
I will share a great script with you soon in this article but I answered his question with a few additional questions. When are you looking to settle? Do you both have an agreement in place for the buyout? Has she agreed to it?

One important way to divert attention away from the rate question is to continue to ask good, solid, probing, questions.

Towards the end of our conversation he finally came back around to what is your rate so I had no choice but to answer it. Before I gave him the rates though I asked him if he was ready to move forward today since rates and points change daily. He said yes.

I GAVE HIM OUR RATES AND A LONG ANSWER.
So I gave him our rates and he proceeded to tell me he had gotten a better price from another lender. Now I hope you realize that on any given day you will never consistently have the best price in the market.
I asked him if rate was his only concern when choosing who to proceed with. He said yes. So I immediately told him NOT to use me or the other lender. Instead, I told him to go on-line and search for the cheapest rate.
He would then be able to complete the application himself and pray that he truly would close on time if at all.

I then “EDUCSCARED” HIM.
What the heck is EDUC SCARING? I actually love this term I created so much I may have it trademarked. Eduscaring is providing a borrower with all of the education they need to make a proper decision on who to work with.
It involves explaining points and APR’s. It involves discussing fees. It involves discussing business and MSA relationships.
It basically provides the buyer with all of the information they need to make a proper decision and not get taken advantage of by the tactics of some lenders.

BUT THEN I ADDED ONE ADDITIONAL POWERFUL THOUGHT.
Ready? You might want to even write this one down –it’s that good!
During our discussion he told me he owned an engineering firm locally. So I asked him how his clients decided?
Was his firm the cheapest in town? If I was going to build a building I would want competitive pricing but more importantly I would want a firm that was competent and would do a good job.
This truly startled him and he told – “Yeah- I guess you are right. Let’s make application.”
Sometimes it’s important for your buyers to “hear” it themselves in a way that makes sense to them. You have my full permission to try this and send me an e-mail at brian@toporiginatorsecrets.com to let me know how it worked.

BUT WHY DO MOST BORROWERS FEEL THE NEED TO SHOP RATES AND POINTS?
The truth is that we all look alike. We all have pretty much the same programs and generally we all have rates that are within .125% of each other.
I actually created a term for this –THE HEAD OF LETTUCE SYNDROME. If there are two heads of lettuce and they are exactly the same, most people will choose the cheapest one.
To consumers we all look alike. We all sound alike. Truthfully, we all act alike and our ads all look alike.
But there are several ways to stand out and some persuasion tactics you can use to stop those rate shoppers dead in their tracks. So grab your highlighter right now and let’s go thru a few of them.

EXPERTISE
As I mentioned one of the biggest challenges we have is that we all look alike to consumers and the only question they know to ask to compare us is “What’s your rate?”
When you are an expert in a niche this question totally disappears. The key is having expertise in programs that most other lenders or not offering. You could also have an expertise in working with a certain group that few others can help.

Our company is the top lender in the US for the 203k loan. This loan is very involved and one that buyers rarely shop. Another niche is that of Boomerang Buyers who have had a bankruptcy or foreclosure. There are programs from several sources that offer buyers loans 1 day after a bankruptcy or foreclosure. I cover this entire niche in the Boomerang Expert system at www.Boomerangexpert.com/replay1
These buyers just want to make sure you are for real and that they can come up with the money down and have comfortable payment.
Solve problems and buyers will rarely if ever shop you. Your mission right now is to pick a niche- become the expert – and let everyone know about your expertise.

TIME INVESTMENT

This is a sneaky little persuasion tactic so keep this one to yourself ok? I always prefer to meet with my clients in person either at my office or at a Realtors office. Many of the loan officers in my office and many of my Top Originator Secrets members just chalk it up to me being “Old School.”
But nothing could be further from the truth. See I like to make my clients invest their time into the pre-approval process. I want them to provide me with their bank statements, income information and have their credit run.
I want to meet them and have them provide this information to me personally. This investment of time and effort on their part makes them much less likely to shop and compare rates. Most people will take the easiest path and since they have now met me and given me their information they are 100 times more likely not to shop.
See there a number of psychological triggers and persuasion tactics that go into converting rate shoppers – I cover many of them and now to implement them in the LO Unfair Edge system at http://lounfairedge.com/1-2/


CELEBRITY AND SOCIAL PROOF

What I am about to share with you is probably not something you will easily admit to but that doesn’t make it any less true. People like to work with celebrities. Your job is to make yourself a celebrity in your area.
How?
Write articles for your local publications.
Have a podcast and promote it on Linked In and Facebook.
Be a guest on local radio shows.
Host your own radio show.
Go on local TV or be interviewed as a resource on the mortgage and real estate market.

Celebrity and social proof are addtional persuasion tactics covered in LO Unfair Edge system at http://lounfairedge.com/1-2/

People love to work with celebrities and they love to brag to all of their friends and celebrities about working with one. It makes them feel special. When they feel special they almost never ask about rates and points. The photo above is the one I use on most of my marketing pieces and it instantly screams Expert and Celebrity.
THE BEST SCRIPT OF ALL –
This is a BIG IDEA that I use daily with my prospects and is easy to implement if these other suggestions scare you. When a client calls me to ask for rates and points as a pre-qualification before they have found a home I never quote rates.

The conversation generally goes this way- so you might want to copy this down right now. This generally happens after we have gone thru the pre-qualifying conversation about income –assets and credit.
This again is a

Prospect: “What are your rates?”

Me: “Rates on this program have been running between 3.75 and 4.0 over the past 60 days. The market has been a bit volatile and bouncing around.

When you find a home and the seller has signed your contract we can lock in your rates. The rates change daily so hopefully we will be on the lower end when you are ready and we can discuss it then.”
The power of this statement is that it makes the person feel like you have in fact given them the information they requested but in fact you really have not told them.

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached, tens of thousands of loan officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com

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THE REAL REASON REALTORS WILL OR WILL NOT DO BUSINESS WITH YOU

I am sure it’s not a news flash to anyone reading this article that 2017 will be the transition year we have all been waiting for ( or dreading) for where move from refinance business to purchase business.
Personally I have always focused on purchase business as have many of the most successful originators in the country.

SO WHAT DO REALTORS REALLY WANT?
This is the question that keeps so many of us up at night and frustrates us on a daily basis. Here are some of the ideas that many originators “think” are correct and some actually are. But please stay with me until the end because I believe there are ONLY 2 reasons they will continually do business with you .
The key word in the last sentence is continually so keep that in mind.

WHY YOU MAY THINK REALTORS WILL DO BUSINESS WITH YOU.

Here are the most common reasons and some feedback on each.

1. You provide excellent service and are always available.
Sorry but this is a given just to enter the conversation with a Realtor. If you don’t provide good service and have good communication skills you simply should find a different profession.

2. You have the lowest rates in town.
Sorry but this is simply not even true or believable to most agents. They don’t truly care about giving their clients the lowest rates and no company can ever consistently have the lowest rate in the marketplace and stay in business.
What you need are competitive rates and most lenders do offer competitive rates. Realtors want to ensure that their buyers are getting a good rate ( not the best) and that they are dealing with an originator that will get them to closing quickly , efficiently and with the least amount of hassle.

3. You have some creative and unique programs.
This is always a good thing and Realtors do often want lenders who work with self employed buyers, reverse clients, new construction, grant programs, 203k and Renovation loans and of course my favorite which are buyers who have had a bankruptcy , foreclosure, or other credit challenge.
While they will seek you out for your expertise if you have it , they will not necessarily ever come back to you with their other deals until you discover the “real” hook I will soon reveal.

4. You are willing to do Zillow or other ads with them.
Yes, Realtors do love this and they will work with you as long as you continue to pay and they are getting buyers. I am not opposed to doing this personally with some agents, but generally this is NOT a business model as much as it is a form of extortion.

5. You are willing to pay the desk rental fee.
Real –Estate Brokers and company owners love this and they should. It’s additional revenue. But once again, I do not personally do this and never have. To me this is also a form of extortion. But more importantly, national statistics show that the in-house originator only generates 23% of the business in the offices they are in.
Maybe even worse is the fact that if you have one bad deal you are pretty much finished with that group ever sending you more buyers.

Then of course there are the other ideas that we use to get Realtors to do business with us.
– Open House forms and visiting open houses on the weekends.
– Sponsoring Broker Opens and going to them.
– Lunch and Learns with Realtors where you teach.
– First time home buyer workshops and seminars.
– Charity events with the Realtors.

There are dozens of other techniques as I am sure you know but the truth is, as I mentioned before , there are really 2 things that Realtors want and need that will make them loyal to you and create great long term mutually profitable relationships.

READY?

First I will give you the simple easy one which is giving them a pre-approved buyer. Yes, you read that correctly. If you are able to generate buyers and get them pre-approved BEFORE they have met with an agent than you can control the transaction.
You can do this with social media, and with many of the systems I have created to turn renters into loans as well as helping the 7.3 million Boomerang buyers who are now able to purchase again.
Getting to the buyers first is actually more important than making Realtor relationships when you think about it. Once you can produce a consistent flow of new buyers you are in total control of your income and your production.

But there is also a second component of getting and maintaining Realtor business. It’s very under the radar and very few if any others ever discuss this aspect of the Realtor /Loan Officer relationship.


THEY MUST KNOW – LIKE AND TRUST YOU!

Let’s break each of these down separately. Once you truly understand this you will quickly be able to grow your business. More importantly, you will have a loyal group of referral partners and you can start enjoying this business again.
TRUST YOU – This is the easiest one. Simply tell the truth always. When there is an issue communicate it and tell everyone that you are on top of it and getting it worked out.
Do what you say you are going to do and do it when you say you are going to do it. Communicate- Communicate- Communicate and always return your phone calls.
While that is just common sense I don’t need to tell you how many originators don’t return calls and then run and hide when problems come up. Don’t be THAT originator!

THEY MUST KNOW YOU and LIKE YOU!
This is truly the key to long lasting Realtor relationships and partnerships. The truth is that we have become a culture that relies on text messages, e-mails, social media and other forms of quick communications. But the people cannot really get to know you and vice versa thru these communications.
Nothing can replace a good old fashioned phone call or in person meeting. As an example, you can e-mail your borrower and the Relators to wish them good luck at closing. But it would be better to at a minimum call them and even better to actually show up.

Much of human persuasion is based on what people see not hear. Opinions are formed based on visual cues we each give off and receive. These can not be formed on Facebook or Linked in nor can they be formed with e-mails or text messages.

I cover an entire course on persuasion called the LO UNFAIR EDGE and I named it that because it truly does give you an unfair edge over any and all competition.

So what should you do about everything you just learned?

Make a conscious effort to meet your referral partners in person. Get to know them. Learn about their business but also learn about what’s happening in their lives and what their passions are.
Just before writing this article I called one of my agents to see how he was feeling because when I spoke with him last week he said he was sick. After that I called another one of my Realtor partners to see how his son was doing after the surgery he had last week.
Take your referral partners to lunch. Have cocktail parties and invite them all so you can meet them in a non –business setting.

Become friends with them. I can’t tell you how many of my personal friends are also Realtors. This is NOT a coincidence. I have attended their family functions and they have attended mine.
Many times they call me to discuss things that have nothing to do business but simply conversations one friend has with the other.

Write this down- People care about what you know – but they need to know you care before they do business with you .

Want to discover the real “psychological” triggers that give Loan Officers an Unfair Edge
visit http://lounfairedge.com/
Brian Sacks
www.TopOriginatorSecrets.com

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Feb 23 2017 Live Training – How To Finally Get Realtor Business Without Begging , Paying Desk Fees, Visiting Open Houses or Having Lunch and Coffees

Let’s take a minute and be honest.

TRUTH # 1 – We all want and need Realtor Referrals

TRUTH # 2- We all hate begging for business

Truth # 3- None of us want to have lunch or coffee with Realtors and “Hope” they give us business and to be fair
The Realtors don’t want to be there either

Truth # 4– Co paying for Zillow leads that are expensive and mostly a waste of precious time is not the best use of your money or your time.

Truth # 5- Paying Desk Fees are a form of extortion and you mostly wind up just being a credit report running machine.

BUT HERE’S THE BOTTOM LINE-
There is one thing that will actually get agents chasing you and I will be sharing my entire system live on Feb 23rd so I hope you can grab your seat.
https://app.webinarjam.net/register/26074/9aeb33302c

Dedicated To Increasing Your Production
Brian Sacks
www.TopOriginatorSecrets.com

BTW– I put the whole system into a simple to follow formula and I will break down each piece of it on the training
write it down right now
I created this because of all the years I spent frustrated and concerned about where my business was coming from and wanted something predictable where I could finally control my own income and business instead of having it depend on agents who aren’t always loyal.

TM + OPEC +ASM+ SRFU = CFNB +RR $

Hope you can make it because it is a game changer now that refis are pretty much gone
https://app.webinarjam.net/register/26074/9aeb33302c

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