Brokers flock to old-school lead generator

Brokers flock to old-school lead generator

Brokers flock to old-school lead generator

Open houses are no longer just for rookies, with a growing number of seasoned brokers reincorporating them as a way of grabbing some of the highest conversion rates in the business.

“Five out of every 10 people I meet through an open house will ultimately get a mortgage through me,” said Deepak Bansal, a Mississauga-based agent with Dominion Lending Centres Mortgage Village. “We’re only talking about an hour or so, but it works, and the thing is that you may not necessarily convert the lead for that particular property, but by staying in touch, you’re getting them when they do find that property.”

That strategy hasn’t been lost on the growing number of mortgage professionals now reintroducing the old-fashioned open house to their marketing and sales strategies. It’s also perceived as a way of bettering the kind of 10 - 30 per cent conversion rates they routinely get through their online efforts.

The open houses also allow for the kind of warm leads more focused on relationships than rates.

Mortgage professionals are also using them as a way of taking back control of the broker-Realtor referral partnership by creating leads they can then share with the real estate professionals who host those open houses.

“The approach is important,” Bansal told MortgageBrokerNews.ca. “Brokers have to sell it to Realtors as a way of helping them generate business from prospective homebuyers that have no real connection to them outside of the open house.

“Most will likely buy another house and by you, the broker, staying in touch with them, you can refer them back to the Realtor hosting the open house as someone to act as their buying agent.”

It’s similar to the sale patter Bansal and other brokers offer Realtors who may be reluctant to have a mortgage professional onsite, arguing it only benefits those brokers.

“Realtors aren’t open to talking with a broker if you just walk into an open house,” he said. “It has to be presented as an opportunity for Realtors.”
 

9 Comments
  • GTA Broker 2012-03-27 4:34:43 AM
    I would question the intelligence of ANY realtor that would allow
    a mortgage agent/broker( or bank rep, home inspector, etc.)or any person who
    is trying to sell a service or product and is not a true potential client/ buyer.
    If the realtor read the listing agreement with the seller, the realtor would see that they are given permission by the seller to admit ONLY potential clients. Furthermore
    Realtor's E&O & the seller's homeowner insurance may not cover theft/physical damage or liabilies caused to or by a mortgage agent or broker.
    Realtor's beware!
    Post a reply
  • Deepak Bansal 2012-03-27 7:50:10 AM
    Dear GTA Broker, valid points you raise, thanks for your feedback. When working at open houses with realtors, the realtor and mortgage professional should likely already have developed a trusting relationship between them. Furthermore, I agree with you that it is indeed the realtor's responsibility to obtain permission from the seller to allow the mortgage professional to attend the open house with them. However, in my opinion, it is important for the homeowner to understand the reason the mortgage professional is there as well, not only for their own and the realtor's benefit (full transparency), but primarily to help pre-qualify potential clients that walk through the front door, which can ultimately help the home sell quicker. Those are my two cents. Feel free to call me if you have anything to add: 416-347-9292.
    Post a reply
  • Rob Campbell, Verico The Mortgage Wellness Group 2012-03-27 6:31:42 PM
    Dearest GTA Realtor,
    Thank you for taking the time to add such wonderful insight. Unfortunately, your comment is implying that all mortgage professionals are thieves.
    However, as Deepak pointed out, the Mortgage Broker is there to weed through the tire kickers and nosy neighbours and get buyers prequalified. ANY Realtor should be able to see the value in that, I'm sure.
    Especially during a busy Open House when the Realtor can't manage to speak with everyone coming through, The Mortgage Broker can help engage with those people, and at the very least get their name and contact info for that Realtor to follow up.
    What happens when a dodgy Realtor visits the home without clients, is there potential there for theft? Silly me, of course not! What was I thinking.
    Focusing only on something like theft or damages without exploring the possibility of exponential value is stupid.
    Deepak, great article. All the best.
    Post a reply