#639: The Future of Real Estate and Agent-Lender Partnerships with Chuck Norsch

John Kitchens Coach Podcast | Life. Coaching. Real Estate

The Future of Real Estate and Agent-Lender Partnerships with Chuck Norsch

Welcome back to One Big Fire! In this episode, John Kitchens dives deep with Chuck, President of a top division at CrossCountry Mortgage and a seasoned leader in the mortgage industry. Together, they unravel the dynamics of agent-lender relationships, explore how the industry is changing, and discuss strategies for building resilient businesses in any market.

From mortgage rate predictions to discussing the recent flat-fee brokerage launch, this episode is packed with insights that every agent and lender can benefit from. It’s not just about tactics; it’s about the mindset needed to survive and thrive in a competitive landscape. Let’s break down the key topics covered.

Key Topics Covered: 1. Agent-Lender Relationship of the Future: Building More Than Just Transactions

John and Chuck kick off the conversation discussing the future of agent-lender partnerships. In the evolving real estate market, the relationship between agents and lenders is more critical than ever. With changes in the post-settlement landscape, Chuck emphasizes the need for lenders to add real value to agent partnerships by providing more than just loans—they need to act as strategic partners.

Chuck shares his philosophy of treating these relationships like a high-dividend stock. Each referral is a long-term investment, not just a one-time transaction. He believes that the best agents want to partner with lenders who can align with their business vision, contribute to growth, and ultimately help create a better experience for their clients. In the long run, these relationships pay off far more than any quick-hit refinance deal.

John adds that successful partnerships are about mutual support and value exchange. For agents, it’s not just about recommending a lender because of lower fees; it’s about trusting a partner who is dedicated to making every transaction smooth, who knows the market deeply, and who can help them grow.

2. Navigating Market Trends and Interest Rate Predictions: Preparing for the Future

The conversation shifts to the current market landscape and where interest rates are headed. Chuck shares his thoughts on what the real estate industry might expect over the next 9-12 months. While he acknowledges that predicting rates is tricky, he’s optimistic about a possible reduction in mortgage rates, which could drop into the 4% range. He believes that if rates dip to the mid-4s, many homeowners currently locked in at 2-3% might start considering selling, which would boost market activity.

This potential drop is something all agents should be preparing for, as it could unlock a wave of inventory currently held back by high rates. For lenders, it means getting ready to navigate the influx of refinance applications and focusing on providing clear, client-focused advice during the transition. Chuck also highlights the importance of being prepared to capitalize on opportunities when the market shifts, as being reactive can often mean missing out.

3. The Importance of Staying Connected to the Customer: Grounded Leadership

Chuck shares his perspective on why, despite his executive role, he remains actively connected to his customers and his team’s day-to-day operations. Whether it’s answering client calls late at night or handling customer issues directly, he believes staying connected keeps him grounded in what truly matters: the customer experience.

Chuck also gives a shoutout to his wife, the number one female Loan Officer in Ohio, who helps him stay plugged into the customer journey. Observing her work provides him a unique lens on the client’s expectations and needs, which informs his approach to recruiting and training his team. He believes that if leaders disconnect from the client, they lose touch with the business’s heartbeat.

This principle extends to how agents should approach their business, too. John and Chuck both agree that staying close to the client is what allows top agents to build lifetime value and maintain a solid reputation in any market condition.

4. The Flat-Fee Brokerage Model: Analyzing Its Potential Impact

Next, John and Chuck dive into the recent buzz about a flat-fee brokerage model launched by a controversial figure in the real estate industry. After being involved in a high-profile lawsuit that disrupted the industry, this individual has launched a flat-fee, buy-side brokerage with a unique approach: charging clients a flat fee for services like showings and contract writing.

Chuck’s take? He’s skeptical. He points out that similar models have come and gone over the years, burning through millions in venture capital only to fizzle out. The fundamental issue is that buyers don’t just need help with showings—they need guidance throughout a complex transaction process. Moreover, the current market climate, where homes are still selling relatively quickly, is not conducive to a transactional, fee-for-service approach.

John agrees and adds that top agents understand their value extends far beyond opening doors. Consumers will always have a subset who want the cheapest option, but they are not the majority. Buyers need trusted advisors who can navigate tricky negotiations, pricing strategies, and emotional decision-making. Flat-fee models strip away the relational value that clients seek and turn agents into commoditized, replaceable parts.

5. Preparing for the Agent to CEO Event: Elevating Your Business Mindset

John then shares his excitement for the upcoming Agent to CEO event, which has nearly sold out. The event, set to take place in Cleveland, will bring together top industry leaders to provide agents with the tools and strategies they need to transition from being agents to becoming true CEOs of their business. Chuck is also thrilled, planning to bring his team to Cleveland for the event.

The high demand for tickets shows that agents are hungry for more than just tactics—they want to develop the CEO mindset that will help them grow and sustain their businesses in any market. John emphasizes that the event is not just about learning; it’s about connecting with peers and industry leaders who are dedicated to leveling up their businesses.

For agents stuck in the daily grind, this event is an opportunity to gain a fresh perspective, get inspired, and build the discipline needed to elevate their business and life.

6. Staying Resilient in a Challenging Market: Turning Tough Times into Opportunities

The episode closes with a powerful message from Chuck: embrace the hard times. He shares that he actually likes tough markets because they eliminate competition. For him, a down market is a prime opportunity to gain market share, refine systems, and strengthen relationships. Agents and lenders who can adapt and grow during challenging periods will be in a much stronger position when the market improves.

John and Chuck both agree that resilience and a long-term vision are what separate top performers from the rest. They urge listeners to think beyond just surviving the next few months. Instead, build a strategy that positions you to thrive, no matter the market conditions.

Final Thoughts & Takeaways:

• Commit to Real Relationships: The most successful agents and lenders don’t treat business as a series of transactions. They build relationships that pay dividends over time.

• Stay Connected to Your Clients: No matter your role, staying close to the client experience is what keeps you grounded and informed.

• Embrace Tough Markets: Use challenging times to refine your skills, eliminate weak competitors, and position yourself for long-term success.

• Prepare for Market Shifts: With potential rate cuts on the horizon, be ready to capture new opportunities as they arise.

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