Wednesday, July 13, 2011

Communication, relationships and value are key

  Good relationships,communication and value are topics that I have touched on many times in my postings. It is the cornerstone of success in the residential real estate business and there are 2 levels to it:

  1. How those relationships and the communication within create value, bringing you repeat and steady business.
  2. How that dynamic works once a deal is in play.

  You've heard the cliche "it's not what you know, but who you know".  Well, how does a cliche become a cliche?  Simply by being true. Knowing the right people, building the right relationships is everything in this business.  The residential real estate market is a complicated one and demands hard work, diligence, knowledge and good communication skills.  The players in the game-attorneys, real estate agents and loan officers cannot do it all on their own.  Everyone plays their part and must play it well and just as important, everyone needs each other or the deal will not close.  For example:
  • Any real estate agent worth their salt will insist that the buyers they work with be prequalified by a mortgage professional prior to taking them to view property.  I guarantee you that the vast majority of successful brokers have a "go to" mortgage professional they work with.  Successful agents worst enemy is wasted time.
  • After speaking to the potential buyer, the mortgage professional should call that agent and tell them exactly what the financial pedigree of the borrower is.  This will give the agent all the information they need to know-purchase price, loan amount, type of property (single family, co op or condo), credit scores, etc.  Now, everyone is on the same page and everyone knows what is doable and what is not.
  • Once a contract is signed, it's my opinion that it's incumbent upon the mortgage professional to reach out to the buyer's attorney either before the loan has been approved or immediately subsequent to approval.  During that phone call/e mail, the mortgage professional should let the attorney know where we are in the process, what conditions need to be addressed, etc.  If its post approval, the real estate agent should be contacted and told the same information.  Again, this is being proactive and gets everyone on the same page.
  • Once the bank is ready to close, the mortgage professional should call both the borrowers attorney and the agent to let them know we are all set.
  Through this constant communication, relationships and trust is built.  You know what else is built?  Value.  That's right and it may be the most important part of this equation.  Peace of mind, trust, comfort, efficiency.  These are all terms that encompass value.  You want that borrower walking away from the transaction saying "that was the best experience of my life. I have never worked with a more professional and knowledgeable group".  Building relationships, fostering good communication and building value is what will get you repeat business.

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