The 360 Degree Financial Adviser
Make the most of every sales opportunity!In the last 12 months it is estimated that around 2500 estate agents have gone out of business and mortgage business has all but dried up forcing many financial advisers down the same road.
With 82% of people reported to be searching for property online and with a growing number of Internet property retailers offering an alternative to traditional property sales methods, the demise of estate agents is set to continue. Whilst some agents will fall by the wayside, the better ones will adapt to survive.
Pressure will inevitably be brought to bear on the commission rates that the remaining estate agents currently enjoy which can be anything from 1-3% of the selling price.
If market forces results in reduced sales commissions, an obvious source of replacement income is financial services. Estate agents will market mortgages and insurance sales to homebuyers even more aggressively than previously. Those clients with an existing adviser will not be spared. Battle lines between estate agents and financial advisers will therefore be drawn.
One solution would be for financial advisers to form an uneasy alliance with their old foe and work with estate agents. However shared commissions will inevitably mean a fall in income for both parties.
Forward thinking financial advisers are turning to the new breed of online estate agents and working alongside companies like online estate and letting agent mousesale.co.uk.
mousesale.co.uk provides a service for people who want to sell or let property without a traditional high street estate agent – potentially saving them thousands of pounds in selling fees.
mousesale Managing Director Richard Garland is a former director of an IFA network and an estate agent. mousesale.co.uk is not regulated by the FSA and has no plans to be so. mousesale.co.uk introduces clients requiring financial advice to suitably qualified advisers.
Whilst some advisers choose to work with mousesale.co.uk formally and take on a protected franchise area, others work with mousesale on a reciprocal referral basis. The primary role of mousesale partners and independent agents is to increase the number of property listings in dedicated areas whilst maximising the cross sale opportunities.
By becoming a ‘360 degree adviser’ and moving into property sales, financial advisers will not only be able to keep estate agents at bay and save their clients money but also diversify into a related business which will generate mortgage leads and further income streams from property sales, lettings, home information packs and conveyancing etc.
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