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Success with Subprime
by Brian
Sacks
Do you have a question for Mr. Sacks? E-mail
it to brian@loanofficersuccess.com.
Click here
for more articles by Mr. Sacks.
What Are You Selling?
Thousands of times each day people shopping for mortgage loans call up lenders
and ask, "What's your rate?" Unfortunately, thousands of times each day loan officers answer this question
by quoting their companies' current rates.
Why is this unfortunate? Because by responding in this way, loan officers unwittingly
allow themselves to be classified as commodities. They might as well be sitting on a shelf down at the grocery
store holding a little price tag and living for the days when they are "on sale." We have to be clear
about what we are selling-it's a service, not a product!
An accountant once called me. He introduced himself and said, "Brian,
I've been referred to you by Mrs. Smith, the realtor down the street. She says you're the best, and that's what
I'm looking for - the best rate in town." I responded, "Howard, I wish you good luck." After he
collected himself he asked, "Well, what do you mean?" I said, "We don't have the best rate in town.
If that's really what you're searching for, I'm going to save you some time."
I guess he thought I was interesting enough to talk to, so we became engaged
in conversation. After a few minutes I said, "Howard, as long as I have you on the phone, I have some rental
properties and some other business ventures that I'm involved in, and I'm trying to get my taxes worked up. If
you have a couple of minutes, would you mind if I asked you a question or two? He said, "Of course not, go
right ahead."
He decided to give me some of his time because he felt that he had a potential
client on the line. After I explained my scenario to him and he answered a few of my questions, he said, "You
know, it sounds as if you have a fairly complicated tax return, Brian. Who do you use for your accountant?"
Here he goes trying to close me, and I basically switched the tables on him.
I said, "You know, Howard, I use H&R Block." He couldn't believe
it: "You're kidding- how could you possibly use H&R Block?" I replied, "Well, Howard, they're
the cheapest. They're far cheaper than anybody else I've seen- I'm sure they're much cheaper than your services.
What I do, basically, is I call around to various accountants that I know, get the answers to my questions, give
it all to the H&R Block guy, and he fills it out."
After a short pause, he goes, "Ohhhh, I get it - I understand." Well,
not only did he use me then for his loan, but he has since been a tremendous source of referrals for me. What I
did basically was put it back into his lap in a situation where he could actually understand it - and he understood
it all right!
"I wish you good luck in your search," has become my standard reply
to people who call me and say that they are just rate shopping. Although this response confuses them at first,
as it did Howard, it is actually a respectful reply. If they truly were searching for the lowest rate, or the cheapest
price, then we would be wasting each other's time to let the conversation go any further.
Usually my response kicks off a discussion in which I can learn a bit more about
their situation and determine what I might be able to do to serve them. I make it clear that I can't guarantee
the best price, but I can guarantee the best service. In the end, almost everyone appreciates this up-front honesty.
Next article will show you how to create long term success.
Click here
for more articles by Mr. Sacks.
Visit Brian Sacks's web site at www.loanofficersuccess.com.
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