“A bad salesman will automatically drop his price. Bad salesman make me sick.”
Price competition has been with us since... well since competition started hundreds of years ago in the lending business. And ever since some medieval banker accepted only five loaves of bread instead of the six that the other guy wanted, price competition in our business has been alive and well.
Price competition has gotten out of hand lately as come lenders are pricing loans so cheaply right now that they can only be doing them for the practice no the paycheck. But if selling by price alone ruled in our business, those who made all of the loans right now would not be making any profit whatsoever and our industry would be rendered fruitless.
Nothing stinks more than working with a customer for months, giving them all the advice and then having them go elsewhere to save 1/8%. It happens to all of us and it happens more now because we are in a slower market and a new era of mortgage advertising where the only consumers these days who don't have mortgage loan shopping constantly in their face are the ones who don't own a computer, TV, radio or mailbox; and people who live in caves rarely need mortgages!
Tomorrow we will look at what you can do to fight the "price wars" and keep more of the commission for which you have worked.