Diversifying into mortgage broking does add value to prospective homebuyers and should be something real estate agencies offer, according to attendees at last week’s inaugural Real Estate Business Principals' Roundtable.
John Cunningham from Cunninghams Property in Sydney was one of the seven principals to attend the industry-first event, which gathered some of the state’s top performing principals.
“We’ve had brokers now for close to 15 years,” Mr Cunningham said.
“We set up a sub brokerage with the firm we’ve been with for the past six years and they come into our office every sales meeting, so the interaction is quite strong.
“We’ve found the biggest shift in the past year has been that, in our teams, the assistants are now doing the home loan calls and they’re getting the lead instead of the salesperson because they’re too busy.
“We’ve got a couple of people in our office who are making a few grand a month in fees, and we’ve set up a system that a majority of the upfront goes to the salesperson who generated the lead, and we get the trail.
“So we’ve been able to grow and we’ve seen that side to the business increase probably 20 per cent in the past year.”
Mr Cunningham's comments come after RE/MAX Australia owner and managing director, Michael Davoren claimed real estate agents will increasingly need to diversify their services if they want to remain profitable in business.
Other attendees at the event included Daniel Formosa, principal of Starr Partners Blacktown, Alison Beveridge, principal of Breakfast Point Realty, Ewan Morton of Morton&Morton, Craig Marshall, principal of CENTURY 21 Cordeau Marshall Group, Domenic Bucciarelli, director LJ Hooker Ashfield and Aris Dendrinos, Richardson&Wrench Marrickville.
For full coverage of the event, make sure you see the June edition of Real Estate Business.