American Advisors Group recently launched a real estate brokerage subsidiary, targeting seniors looking for housing options other than a reverse mortgage and expanding its reach into the world of real estate referrals.
AAG Residential Services, Inc. will match seniors interested in downsizing with qualified real estate agents who have a history of working with clients aged 55 and up, according to the new operation’s website.
“AAG gets thousands of calls each day from seniors wanting to make a change — many wanting to sell their home,” the Orange, Calif.-based firm notes in a frequently-asked-questions section for real estate agents interested in receiving leads.
“These leads consist of older adults that have exhausted other financial options and considerations, ultimately wanting and ready to sell their home,” the FAQ continues.
A spokesperson for AAG said the company is working on an official announcement and declined to provide any further information about the company’s new initiative.
A wider consumer pitch
The marketing copy emphasizing the sheer volume of calls could provide some insight into AAG’s plan: While 500,000 people called the company about potentially taking out a Home Equity Conversion Mortgage in 2016, just 9,000 ended up seeing the process through to closing, according to a recent Forbes profile of AAG founder Reza Jahangiri. By offering options other than reverse mortgages, AAG could expand its business with the contacts it already makes on a daily basis.
The company also touted its experience with HECM for Purchase transactions, which many players in the industry have long sought to expand in popularity, and mentioned that it would advise consumers on in-home care options.
The exact commission rates that AAG Residential Services earns per referral varies, according to the website, though the company noted that there’s no upfront cost to become a referral partner.
On a consumer-facing page, the new subsidiary positions its services as no-cost advice for seniors who feel overwhelmed by their current living situations due to maintenance issues, distance from family and friends, or a lack of accessibility — for instance, multiple stories and stairs.
“As a subsidiary of AAG, we know how to work with seniors during an exciting and sometimes overwhelming time of their lives,” the site reads. “We understand the complexities of moving and the attachment many older adults have to their home.”
Written by Alex Spanko