McGrath plans big expansion of broker business

McGrath plans big expansion of broker business

by 0 comments

McGrath Estate Agents has pointed to potentially large revenue streams waiting to be tapped, with less than 10 per cent of its clients using its finance arm.

Chief executive John McGrath said he admired the success being achieved by UK agency Countrywide, which converts more than half of its property clients into mortgage clients.

“It finds mortgages for around 58 per cent of its property sales, which is as good as I’ve heard anywhere in the world in terms of a success ratio,” he told Real Estate Business.

“At the moment, only seven to eight per cent of our deals are funded through our brokerage, so we see huge potential for growth.”

McGrath Estate Agents has 63 agencies, while its broking business, Oxygen Home Loans, had 29 loan writers as of the end of 2014.

Mr McGrath said the agency’s long-term goal is to have one broker in every one of its real estate offices.

“We think that anyone buying property through an agency should have the opportunity to discuss their financial needs with an independent broker within the business,” he said.

“Who wants to fall in love with a property and then have to spend time searching elsewhere for a broker or a bank when you get do it all under one roof?”

Mr McGrath also said that owning a broking business doesn’t just give McGrath Estate Agents another revenue raiser but also helps its agents win listings and sales.

However, linking agents and brokers is harder than it seems, he added.

“Agents are already subject to enormous amounts of rejection in their day-to-day job, so a lot of them don’t refer a broker to avoid facing more rejection,” Mr McGrath said.

“Even though we’ve had great success, around 25 per cent of our agents don’t seem to refer under any circumstances.

“Then there’s another 25 per cent who refer loyally and regularly, and then there’s 50 per cent that really depend on the relationship that the broker forms with them.”

Hockingstuart told Real Estate Business in December that it planned to diversify into mortgage broking in 2015.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Depends on the group
Do you have an industry update?