3 ways to generate leads through real estate agents
Generating leads from Real Estate Agents can be hard. The most common feedback when asking agents for leads is that “the prospect is already pre-approved”, “they are not interested” or “they’re happy with their current bank.” Although this might seem difficult to overcome I have a few proven techniques which will get you more qualified leads every time!
I’ve recently been working more and more closely with some local real estate agents and while I was generating leads, I wasn’t 100% satisfied with the results. My biggest problem was that once a property went under contract it seemed instantly all bets were off for me to arrange finance. No matter how the agent positioned me or what I’d say the prospect wasn’t interested.
This wasn’t good enough and I knew there had to be a better way – fortunately there is. Through lots of trial and error I have finally worked out 3 ways to generate quality leads though real estate agents!
Step 1. Forget you are even a mortgage broker
In the first instance you have to completely forget and not talk about the home loan. This means that there are no offers of second opinions on their pre-approval, special rates, pimping your CBA/Westpac/whatever bank diamond status or directly hawking your mortgage wares – They don’t care right now. This is a really important step because if you get it wrong here you won’t get a second chance!!
You’ve got to look at it from the prospects perspective; they’ve just signed a contract on a property and their number one concern at this point is not the home loan; In actual fact as soon as they sign the contract it’s the home insurance and rightly so! In Queensland they are now legally liable for that property and should be educated by the real estate agent on the importance of this. By doing this properly it will give you an opportunity to talk and help the prospect.
Step 2. Giving opens the way for receiving
My philosophy in business is to always give value. Now we know that the prospects priority is the insurance the way we add value is by making the insurance simple, convenient and easy. How we add MASSIVE value and go one step further is by making it complimentary – some insurance providers give 90 days free coverage to allow this.
Position the insurance such a way (very subtlety) that you’re doing the prospect a favour – I would say, “In order to get access to the 90 Days complimentary insurance I will have to get Insurance Company A to call you direct.” By doing this you engage the law of reciprocity that is responding in kind and this will give you an opportunity to receive.
Step 3. Ask and you will receive – THIS IS WHERE THE MAGIC HAPPENS
Because you’ve helped them achieve their goal (protecting their soon to be asset, for free) you now have permission to ask – but be sure you speak calmly and in more of a conversational manner. For example I say, almost like it’s a second thought and only just popped into mind, “in terms of your finance, would you be open to looking at competitive options too?”
It is imperative not to say anything once you’ve finished this sentence!! This is the key!!
Example of what typically happens next:
- Me: In terms of your finance, would you be open to looking at competitive options?
- Me: ***Pause and say nothing***
- Prospect: Umm…. we currently have a home loan pre approval.
- Me: ***Pause and say nothing***
- Prospect: Ahhhhh… I don’t see why not… Yes, I guess we would.
By firstly taking the pressure off, giving rather taking, not hard selling and finally just having a conversation 9 times out of 10 the prospect will at the very least agree to an initial meeting.
Where it goes from there is up to you.