The art of distraction: If clients focus on interest rates, it’s your fault

Posted by Feb24, 2016 Comments Comments Off
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Many borrowers have been trained by the media and their well-meaning friends that the interest rate and fees are the only important things to consider when selecting a mortgages.

However, experienced brokers know that interest rates and fees are only two of many (often) equally important factors. The art of avoiding conversations about interest rates is to help clients discover for themselves what other factors are important to them. Don’t talk about rates. Instead, start asking lots of questions to uncover their needs. It’s all about “asking better questions”. What questions can you ask your prospective clients that will get them thinking, that will uncover needs, that will help them make the right decision? Make a list of them and bring it into every meeting as a reminder.

Once you have uncovered all the prospects needs, you can then start talking about rates and fees in a better context – and this will help them weight up how important they are.

For example, things like property valuation amounts, borrowing capacity, which lender allows you to have an offset against a loan that is in a trusts name and so on… these things might be just as important (or more) as the rate. Think: “if you were in their shoes what would you be thinking about other the rates?’ For example, if the client wants to upgrade their home they should be concerned with how to do it safely and not risk being homeless or stuck with two properties they cannot afford.

Distract them away from rates with your valuable advice.

Don’t answer any “interest rate questions” from prospects until you have a full understanding of their needs. Pt differently, never quote price until you have established value.

Often, it is the small things that you do when dealing with clients that can have the biggest impact. It’s easier to improve 100 times by 1% than 1 thing by 100%. With that in mind, check out Deena Janes’ (Your Client Matters) 2-hour workshops that she is running around the country – click here. Invest 2 hours of your day and if you only learn just one thing, it will be worth it – I’m sure you’ll learn heaps.

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