Real estate sales professionals are the “Quarterbacks” on the home sale team.
Somewhere in the neighborhood of 42 people participate in every transaction – Buyers – Sellers – Lenders – Appraisers – Title Companies – Contractors – Inspectors and the list goes on including all of the staff of all of these players.
So . . . technically, every transaction is its own 42ish person organization (team). All of these people have crucial functions in this and important, wildly complex endeavor. One dropped ball by ANYONE at ANY time could kibosh the entire deal resulting in home buyers not owning that house they love and Sellers not being able to move on with their new lifestyle in a different house. Indeed, the stakes are HIGH!
Most of the these transactions originate with REALTORS. Home Buyers and Sellers “hire” these professionals as exclusive representatives on a contingency fee basis . . . The REALTOR doesn’t receive compensation until or unless the transaction CLOSES and FUNDS. That’s right . . . a REALTOR could work with a client for untold hours “invested” over a period of MONTHS and not make a dime.
Is there any other “profession” that works this way?
It’s the REALTORS who typically refer many of those 42 players aforementioned to their clients. Many of these “vendors” are receiving most of their business from a select group of REALTORS and literally do not need to pay for any marketing for new business.
A common frustration in our industry is that these referral “relationships” are largely “one way streets” . . . Other than a “thank you”, lenders and other vendors seldom reciprocate by referring new clients to REALTORS. When asked why, the response often is along the lines that they seldom run across unrepresented buyers and sellers (because they are not having to market for them) and when they do have the opportunity, they have too many REALTORS sending them business to be able scratch everyone’s back with occasional referrals . . . hmmm.
RESPA allows Lenders to participate financially in co-marketing with REALTORS. The guidelines are clear and absolute. ANY Lender can “support” a REALTOR by helping defray marketing fees which lead to more leads for the REALTOR thereby creating more business for the . . . LENDER.
I think it’s nothing more than “good business” for these co-marketing pursuits because everyone who has a dog in the hunt WINS!
So . . . why are so many lenders so unwilling to be contributing team players?
Please note that I did not mention any absolutes . . . some lenders DO very generously (within RESPA rules) support their REALTOR “partners”.
The bottom line for me is full of candor . . . We all expect everyone in our rolodex to do what they do well, timely, and professionally. That’s the baseline . . . I think it’s fair to expect more than baseline by bringing a dog to the hunt – Full participation = Partnership.