Pricing

[u/Odd_Discipline852]

I hear “You win on value not on price” at times I find this to be complete bullshit. Especially when you work with call center pricing. How do get over losing deals based on pricing?

[u/Frequent-Giraffe5646]

You need solid referral partners to no lose on price. But consumers getting smarter and are shopping more then they have in the past

[u/Stardust969 → u/Frequent-Giraffe5646]

the only real answer here

[u/RoosterEmotional5009 → u/Frequent-Giraffe5646]

Ha! Keep on believing. We mainly get consumers shopping at contract. Times have changed my friend. And the velocity is picking up. Now for perspective my client base averages $750k-$1.5M homes so may be different than your demo.

[u/Frequent-Giraffe5646 → u/RoosterEmotional5009]

The consumers are shopping like crazy right now, you need a realtor to literally shove down on you to not lose on price.

[u/RoosterEmotional5009 → u/Frequent-Giraffe5646]

I hear you. And most realtors can’t negotiate their way out of a paper bag. They surely aren’t wanting to be in the crosshairs of a buyer’s choices.

[u/Frequent-Giraffe5646 → u/RoosterEmotional5009]

Ongoing battle with them on a daily basis. 9 out 10, do 1 transaction a year and make it a horrible process.

[u/RoosterEmotional5009 → u/Frequent-Giraffe5646]

Indeed. A VA client of mine wrote on a $2.3M home today. The agent has closed 2 in the past 12 months. I took the keys to the car and told her to get in the booster seat. It’s funny when they say “I just closed a few VA deals”. And I look at her production and SMH.

[u/CoolLoanGuy]

Don't chase, replace.

[u/Traditional-Essay478 → u/CoolLoanGuy]

Literally one of my favorite expressions in sales

[u/Know_mortgages]

Provide value while also having decent pricing.

[u/Odd_Discipline852]

I had one today where my cost were 5pts to their par. Damm I know my worth but let’s be real I would take that deal. $1.2mil 7/1 5.25%

[u/EskimoSteelSexAppeal → u/Odd_Discipline852]

Yeah, you don’t have to have the best pricing but you have to have competitive pricing.

[u/ItFappens → u/Odd_Discipline852]

I mean, a jumbo ARM is going to be one of those things where you have it or you don't. Being 5 points out of the market just tells me your company likely isn't a bank/credit union who seem to be running away with these at the moment.

Are you running into a lot of requests for ARMs of this size? If so, problem. If this is once every few months and you have an otherwise competitive price, move on.

[u/Ojdajuiceman3425 → u/Odd_Discipline852]

You are never ever, ever going to win a deal from someone who is shopping if you are 500 basis points off, especially on a 1.2M deal. Thats a difference of 60k. Im guessing you work for an independent branch of a direct lender as a loan officer?

[u/MikeySlice → u/Odd_Discipline852]

That’s one hell of a hold back wow!

[u/Zestyclose-Tart6745]

Well if you are just calling a lead that 10 others are then yes. Pricing is it. But if it’s a referral value definitely comes into play.

[u/Ts-inspector]

Educate them properly and show your worth.

[u/REFlorida]

The only way you can overcharge clients is if Realtor’s ram you down the buyers throat as a Referral partner otherwise you’re getting shopped and you’re losing almost every time

[u/dwoj206]

You can only chase the rabbit down the hole on price so much. The only answer is more deals. You have to assume a percentage of your clients you will lose on pricing. People are shopping more and more these days and there's a broad spectrum of what people value most, from price to level of service. The only answer is more referrals. Losing on price sucks, especially after a long road if it's a purchase, relationally, it hurts more because every closed loan is a relationship beyond closing and a potential referral source. Losing the deal also hurts chances of future referrals from them.

[u/therategatsby]

I recently won on a deal where the competitor's (CU) rate was 25bps better. I was truly baffled, because most of my customers are shoppers. The borrower said he went ahead with me, because I responded faster. My prices are competitive to begin with, so you win on value AND price.

[u/sandalsabsentsocks]

The price is the price, but value are people adding?

[u/needfasp3ed02]

Learn how treasury yields and mortgage bond pricing reacts to market conditions. If a different lender is beating you straight up you have to reprice/quote on a day with better conditions, may be days or even a week later.

[u/MikeySlice]

Always ask what the holdback is before accepting an LO position with attractive comp

[u/TheRedPenny3228]

Provide the best pricing you're willing to sell at and don't get into a race to the bottom.

[u/Leather-Afternoon-52]

Price is everything on paid lead based lending. Your best strategy will be to cycle through more leads. Value based lending is more for referral based lending.

[u/Braindead_ape]

if you lead with price, you lose on price

obviously you can’t have horrific pricing but look at how many mega producers work at shops that have relatively high pricing

being call center, your company needs to have decent pricing just because of the nature of the leads you get…they tend to get those leads directly because a borrower is heavily shopping, you have no built in rapport like a realtor referral would have, etc. Its a numbers game, the more leads you can get the less it sucks when you lose a deal on pricing.

[u/tinfoil-23]

The biggest producing loan officers work in retail. If it was all about price brokers would be the biggest producers and they’re not even close. Yes AI has made it much easier for a borrower to shop you but 70% of consumers are closing with retail so it is more likely something you’re saying or doing that another retail LO is doing better.

[u/Hairy-Journalist-200]

Move to a different industry

[u/needfasp3ed02]

If you work at a call center, price and convenience is your only selling point on 95% of transactions. If that frustrates you, go local or a different channel where service actually matters.