What Brokers and Agents Want From Lenders
“The real estate and mortgage industries need each other more than ever” according to real estate news website Inman and real estate branding agency 1000watt. The site conducted a study to uncover what real estate brokers and agents are looking for from lenders. The findings will come as a sigh of relief for lenders as agents and brokers are more eager than ever to work with nonbank lenders, banks and mortgage brokers, despite new regulations.
About the Survey
Nearly three quarters of the respondents were real estate agents while 26 percent of the respondents identified as brokers. Sixty percent of respondents are independent and unaffiliated with a real estate franchise, while the remaining 40 percent are affiliated with firms such as Keller Williams, RE/MAX and Coldwell Banker. There were also phone interviews completed with real estate brokerage executives who run companies with over 500 agents each.
The report, “What real estate brokers and agents want from lenders,” revealed ongoing trends in the mortgage industry including:
- When selecting a mortgage partner, cultural fit and the ability for a partner to forge strong relationships is the most important trait for real estate brokers when considering an individual.
- Real estate agents rank speed as the most important factor that determines if they will recommend a lender to a client.
- An overwhelming majority – 77 percent – of respondents say they only have one lender to which they refer clients.
- The report emphasized the need for lenders to have a physical office presence. The executive who reported the highest capture rate for his company’s mortgage partner – nearly 50 percent – has a loan office set up physically inside the brokerage.
- More brokers than in the past indicated that consumer behavior is changing and nearly half of buyers already have a lender in place when they speak to a real estate agent. Additionally, more buyers than in the past are looking to get prequalified.
The report ended with this strong statement: “The old days of brokers treating the mortgage relationship as a “tack on” business are soon over. Now, brokers need to rethink how and where in the home search process their affiliated mortgage business sits with consumers. Lenders seeking strong real estate partnerships will need to be more attuned to their brokerage partners’ businesses – and their local market dynamics – than ever before.”