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Sebastian James, managing director of Hunter James — Exclusive Buyers Agents & Property Advisors, talks to The Adviser about the benefits of building a referral relationship with a buyer's agent.
How long have you been working with mortgage brokers?
Since I began in real estate. As a sales agent in London we used to have a partnership with a large mortgage brokerage firm called Alexander Hall, which I worked very closely with. This helped me develop a strong understanding of the role of finance brokers and the value we can add to each other.
Do you have exclusive or multiple broker relationships?
Multiple relationships. When we first meet a client and evaluate their needs we want to ensure they are in a position to proceed, so whilst considering what’s in their best interest we will often recommend a choice of top finance brokers if they don’t already have one.
What is the process for referral?
If a broker has referred a client to us in the first place, we ensure all returning clients will always be referred back to them, likewise any of their friends/family and colleagues who engage our services will also be referred back to the originating broker helping the broker to not only grow existing business but to capture new business too. We see ourselves as an extension of the broker’s brand, providing them with greater transparency and control, whilst helping them to retain and convert clients.
How do you choose which brokers to work with?
We will only ever partner with the best, which means they must always put the clients’ best interests first, practice the highest customer service standards, have a client-for-life (non-transactional) approach and most importantly high levels of experience, knowledge and integrity.
How many referrals would you make to a broker in a month?
This can vary considerably but can reach double digits. By buying well for clients we also put them in a stronger position to refinance sooner especially if they are looking to invest and grow a portfolio.
How many referrals do you receive through your relationship with brokers?
Again this can vary depending on the broker. Our top individual partner referred 42 converting clients last year, recognising how this not only improved client satisfaction but dramatically increased their pre-approval to conversion ratio, and reduced the average time clients took to find and settle on a property.
What is the key to having a successful buyer’s agent-mortgage broker referral relationship?
Above all, it’s about taking a collaborative, open and honest approach. The key is simply taking action by asking clients if they have considered using a buyer’s agent/mortgage broker to assist them. This opens up a discussion on the benefits and can often lead to an initial introduction on both sides. As each B2B relationship grows and as mutual trust is established, cross selling each other’s value-add services should become second nature and part of the process wherever appropriate.
Would you encourage more brokers to pursue a referral relationship with a buyer’s agent?
Absolutely.
A buyer’s agent aids:
• Improved client conversion/reduction in pre-approval lapse
• Customer acquisition – new leads, extension of business, additional brand awareness
• Customer retention – transparency of process and control and refinance opportunities through helping them to buy well
• Client satisfaction – value-added service. Reinforces brokers as a trusted adviser, not just in it for a quick transaction
• Ultimately the referral dynamic is a win-win for all parties, increasing conversions and adding a new revenue stream to the respective business, whilst achieving the clients’ goals
