The Huge Opportunity that 83% of Real Estate Agents Miss

2022 was a year of ups and downs for almost everyone. There are many damning sights in the financial markets but also very positive opportunities. 

In the US, many people have been affected by the high levels of inflation, but, at the same time, the low-interest rates that came with these inflation levels also brought forth many opportunities for property buyers to access less expensive loans.

With the dust settling in the real estate markets, many property buyers and sellers wonder what the new year will bring to the table.

According to Daniel Halvorsen, the Area Manager at Bank of England, this is a huge lost opportunity for real estate agents, who could add value to their clients by acting as longer-term financial advisors.

Real Estate Agents as Financial Advisors

The best real estate agents are the ones who know the markets like the palm of their hands, with a thorough understanding, not just of local prices and rates but also of how things operate at a macroeconomic level and how this affects their neighborhoods, states, and their country as a whole.

However, only a few real estate agents take the opportunity to use their knowledge to provide value to their clients in a thorough manner, beyond helping them find an excellent property to buy or a good client to sell their property to.

Halvorsen cited a market report by Brian Buffini, revealing that around 83% of clients don’t make their real estate advisors part of their financial team.

Getting Creative to Add Value to Clients

There are many ways in which real estate agents can take the next step to become critical parts of their client’s financial teams. These may include:

Annual mortgage reviews:

Give periodic phone calls to your client to ask them whether they’d like to know about possible refinance alternatives in their mortgage payments and new credit opportunities. 

New investment opportunities:

Contact your clients to inform them about market movements and new investment opportunities in the real estate markets.

Tax savings opportunities:

Let your clients know when they get new tax-saving opportunities in their current loans or property expenses, giving them new opportunities to work with you.

Financial planning:

Offer your clients advice on future financial planning, letting them know how they can save and invest money wisely.

Final Thoughts: Capitalize on Current Opportunities

Real estate agents who can provide value to their clients by acting as financial advisors can differentiate themselves and build long-term relationships with their clients.

By offering services such as annual mortgage reviews, information on new investment opportunities, tax savings advice, and financial planning, real estate agents can become integral members of their clients' financial teams and help them make informed decisions about their property and financial futures.

You can learn more about how to level up your game as a real estate agent and stay ahead of the competition from Daniel Halvorsen and other top experts by tuning in to the What’s Your 1 More podcast, where you’ll grow your finances and leadership skills.