Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Kiss and make up: Brokers and real estate agents unite

Notify me of new replies via email
Australian Broker | 22 May 2013, 08:00 AM Agree 0
One top real estate agent believes he's found the perfect recipe for bringing brokers and agents together
  • Sydney Broker | 22 May 2013, 10:45 AM Agree 0
    Interesting. His "Light bulb" moment has actually been occuring for over 15 years.
    Though it's still refreshing that a real estate agent knows what a referral is. Though I dont agree with paying commissions to agents. I wonder if they give the broker the same percentage split if he refers a listing?
  • Jack | 22 May 2013, 10:56 AM Agree 0
    Real estate is slow...hence the good old agents want a piece of the action where ever they can get it.
  • Moonae | 22 May 2013, 11:00 AM Agree 0
    Great to see Brokers giving up their professional income to real estate agents who refer. Fat chance of any real estate agent giving up a chunk of their commissions though if the Broker referred a client back. If Agents just realised that local Brokers are dealing with people who are buying and selling all the time and were just thankful of a reciprocating relationship where no one touches each others professional incomes things might be a little tighter. Despite the impression that property and mortgage goes together it is a lot more complex to make it work in practice. I find its the greedy Agent rather than the Broker who stuffs it up
  • Keith | 22 May 2013, 11:25 AM Agree 0
    Yes and agents dont carry a 2 year clawback if for reasons unknown the client decides to sell the property. Devastation for the broker but potentially another sale for the agent!
  • Coast Broker | 22 May 2013, 12:19 PM Agree 0
    What planet is this guy on. Stick to Real Estate John. I bet he would not give up any of his commission on a sale if I referred him a vendor. Typical greedy real estate agent that wants his cake and eat it too. I wonder if a Real Estate Agent actually knows the work involved in arranging finance for a client
  • Billy Bob Blogger | 22 May 2013, 02:04 PM Agree 0
    John, as a Broker i would tell you i don't need the practice.
  • Melb Broker | 22 May 2013, 02:06 PM Agree 0
    Tried to deal with RE Agents in the past. Definitely not for me or my business
  • John from Geelong | 22 May 2013, 03:25 PM Agree 0
    Yes, typical. The agent says the system works fine while the flow of funds is in their direction. 'Lets get the broker to work harder so we can earn more money and take some from him too.'

    Sustainable if your average loan size is up over $500k, here in little ol' Geelong, the average loan is $250k and there's not enough in there to feed many mouths.

    John
  • Long term broker | 22 May 2013, 04:12 PM Agree 0
    Agents would be the most greedy people i have come across within my profession.
    As mentioned by others in this forum, they would not share a referral fee back for a potential property sale referral.
    However, i also think its also the brokers fault for giving away their income when he does all the hard work writting the loan. Some brokers do not value their expertise and time, leading to agents wanting a cut of their money.
  • John | 22 May 2013, 04:32 PM Agree 0
    Its not a puzzle. I pay agents a fee for referrals and it works fine. Great referrals great business, all the deals are not vanilla but that's life. By providing a good service to agents, to qualify their potential buyers before they sign, is the way to position it, win for all. Some reps see great value in this other don't. I'm way ahead.
  • john cunningham | 22 May 2013, 08:47 PM Agree 0
    WOW, what a response, it appears that you guys have some serious issues to deal with. Our broker approached us with the deal and it works for both brilliantly. you guys really need to chill and see through your bias and find the opportunity in the relationship. we get a minority % of the up front and the claw back as well so get your facts right. Real estate is not slow Jack and our Broker is one of the Industries top firms so they know a good relationship when they see one. time to get with the times people.
  • SIDBROKER | 22 May 2013, 10:17 PM Agree 0
    Working with real estate agents is great. They give you all the clients who can`t get finance anywhere else and then they put pressure on you to perform. Its all a one way street to them.
  • john cunningham | 23 May 2013, 08:46 AM Agree 0
    you guys still don't get it. this is business the broker was never going to get without us sourcing it for them. They are well qualified leads and this is long term opportunity business for you so i am really puzzled by the attitude, talk about negativity. Time to get an abundance attitude and flourish.
  • Coast Broker | 23 May 2013, 09:20 AM Agree 0
    Still no mention that the Real Esate Agency would give some of their commission to a Mortgage Broker for a referral of listing and a successful sale. Qualified leads how does a Real Estate Agent know how to qualify a lead without asking a prospective borrower questions that a Mortgage Broker and Lender need to know. By the way I have also been in the Finance Industry for many years and have run a Real Estate branded Mortgage Brokering business so well versed to comment. Give me referrals without having to pay commission and I will reciprocate in return. That works well for me. Also from my years of experience most of the general public do not want to divulge personal financial information to an Agent.
  • ozboy | 23 May 2013, 09:29 AM Agree 0
    Mr Cunningham with all due respect, you can't keep pushing back to the broker ("you guys really need to chill and see through your bias" and "you guys still don't get it"). These feelings brokers have are due to their personally experiences gathered over time. One person telling them it's different isn't going to change how they feel and you pushing back won't help.

    I personally have had exactly the same experience most of the other brokers here have had but I did take solace from your "press release" that there is still an opportunity for us to work together in a relationship that is beneficial for everyone. I even sent around my team hoping to encourage them.

    At this stage I would say this is the exception rather than the rule.

    Now if only I could find a R/E that thought and works like Mr Cunningham!!! That's the challenge.
  • Coast Broker | 23 May 2013, 09:48 AM Agree 0
    Well said Ozboy
  • SIDBROKER | 23 May 2013, 01:44 PM Agree 0
    Dear Mr. Cunningham. Why don`t brokers chase leads from brokers. We know in advance of many people selling and buying. I have put this question to many re agents and not once did the question sink in much less a reply. Can you please assist me to understand this one as i canno`t understand the mentality here.
  • mac | 23 May 2013, 03:57 PM Agree 0
    At the end of the day no matter how you cut it at its core leads from agents are a conflict of interest. One represents the seller the other the buyer you can't get away from that if you are being ethical.... I too as an agent would want my poetntial purchasers qualified but there in lies the problem.
  • SIDBROKER | 23 May 2013, 06:29 PM Agree 0
    WOOPS that was a typo, i mean`t real estate agents to chase brokers.
  • Jake | 23 May 2013, 09:14 PM Agree 0
    My business partner and I (we are Mortgage Brokers) have been working with Real Estate Agents for over 20 years.

    The thing we have learnt to accept is that Real Estate Agents are like the working girls or girls of the night. They cannot commit to only one client (i.e. Broker) and they know how to make you feel loved for a short period of time. The next Broker that calls on them with a slightly better offer than yours is made to feel loved also for a short period of time. And it's a constant revolving door of brokers just like it is for the working girls.

    If you want a long term relationship then look for love (i.e. a referrer) somewhere else.
  • SIDBROKER | 24 May 2013, 09:38 AM Agree 0
    Hey Jake. Are you suggesting that real estate agents are a bunch of tarts. If you are i love it. LOL.
  • John cunningham | 24 May 2013, 09:46 AM Agree 0
    I never realised the animosity there is between some brokers and Real Estate Agents, all the brokers we deal with both from our own relationships and other firms as well are all conducted on a highly professional basis so some of the comments that have been aimed at me have really taken me aback. I suppose it just goes to show that the 80/20 rule applies to most things
  • mac | 24 May 2013, 09:59 AM Agree 0
    Thanks for the tips on running a brokerage Richie.
  • SIDBROKER | 24 May 2013, 06:11 PM Agree 0
    Dear John, You may be differant to the mainstream re agents we are referring to and if you are that would be a nice surprise. I also live next door to one and he and his wife are so selfish i gave up on them as well. Questions. 1. Do you expect a broker to split the commission with you. 2. Do you split commission with the broker for a referal? 3.Would you turf out an existing broker because another broker came along with a better offer? 4. Do you honor clawback when a broker is clawedback? If you answered yes to q`s 1 and 3 and no to q`s 2 and 4 then you are no differant to the agents we are alredy fed up with. This is your chance to set the benchmark John but of course if you choose not to reply then say no more!
  • Coast Broker | 27 May 2013, 08:36 AM Agree 0
    Agree with what you have said SidBroker. Doubt we will herefrom Mr Cunningham again
  • SIDBROKER | 03 Jun 2013, 10:59 AM Agree 0
    To Coast Broker, unfortunately it appears we were right.
  • Roman | 17 Aug 2013, 01:17 PM Agree 0
    Do you guys think there is a need for a platform where greedy agents and generous brokers can establish relationships and refer clients full duplex?
  • Bri | 19 Aug 2013, 10:06 AM Agree 0
    I and office do both - and split 20% of commission (GCI) for both finance and realestate deal referrals.

    And to me it works well together - qualify someone for finance then find them a house OR someone contracts on a listing and nothing makes the seller happier than them qualifying for finance!. One doesnt work without the other.
Post a reply