Real estate tycoon John McGrath has urged more brokers to join forces with agents, but admits the process is not easy.
Speaking on a panel at the 2015 Aussie Sales Conference in Melbourne this week, Mr McGrath warned brokers that working with agents is “harder than it looks”.
“Agents are busy, they are focused on their deals and they don’t want too much rejection by recommending brokers and so forth,” he said.
“My view is that a total solution going forward is key; every agent in your community should have a mortgage broker on their speed dial.”
While Mr McGrath said that it is “critical” to have real estate agents in your community working with a “world-class mortgage broker”, the relationship is difficult to initiate and manage.
“You’ve got to crack the code, because agents are busy, there’s ego there, so you’ve got to find a way in,” he said. “But once you do there’s the potential for them to give you twenty, thirty, fifty leads a month and potentially double or triple your business.
“It’s a good thing. Agents and mortgage brokers need to come closer together.”
The McGrath-owned Oxygen Home Loans ranked ninth in The Adviser's Top 25 Brokerages for 2015. The brokerage has been in business for 11 years and currently employs 30 brokers across NSW, Queensland and the ACT.
Oxygen general manager Alan Hemmings said lead generation is the key benefit to being attached to a real estate group.
“As property and finance go hand in hand, it is only natural to have a broker as part of the business to make the transaction process for a buyer as seamless and as easy as possible,” Mr Hemmings said.
Oxygen Home Loans has a loan book valued at approximately $1.9 billion.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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