Never Market Rates!
I see it all the time and it makes me cringe! Originators and companies who think they are helping themselves by marketing and advertising mortgage rates! Here are five quick reasons why this is NOT a great idea:
- Rates change! Before you can complete all the legal disclosures on your marketing piece, that rate may be long gone! Even if that rate holds for the day, it has no staying power and holds you out as a salesman, not an expert concerned about the value of a quality experience for the customer!
- All borrowers are not the same! Loan sizes, products and programs, loan to value, and types of property all weigh into the actual effective “rate” the will be part of any deal.
- Credit quality is often the biggest factor of all! Since pricing can vary so much based on the credit quality of the borrower, do you advertise the “rate” for the best qualified people and tell all the others they are lacking? Why would you upset or insult a majority of your potential customers?
- If the strongest part of attracting your business is based on rate, you are the weakest player in your market! Price is just one part of the overall client experience. When you spend your time marketing rate, please don’t complain about being “shopped” the entire process!
- In a battle of rates, the best liar on the internet usually wins!
So PLEASE! Stop posting rates on social media unless that is your only value to the customer! If you are a true professional, understand value and providing a quality experience for the customer and your referral partners, then share your expertise, not your rates! NOBODY EVER GETS THE LOWEST RATES! Somebody will always work cheaper or lie better! Rely on offering great value and an exceptional experience. Market your speed, agility, and expertise. Offer information, education, and options. Build a relationship on value and quality of the customer experience, do not try and sell price!
Questions or comments: [email protected]
