Building strong bonds with real estate agents (2022)

One deals with loans, the other with homes, but a broker and a real estate agent serve a common client and can strengthen their offering when connected by a mutually beneficial referral partnership, writes Maya Breen

One deals with loans, the other with homes, but a broker and a real estate agent serve a common client and can strengthen their offering when connected by a mutually beneficial referral partnership, writes Maya Breen

A referral partnership can be a highly valuable arrangement for both the broker and real estate agent involved, providing the partnership works in the right way. If it is one cemented in trust and effective communication, then it is more likely to succeed. MPA spoke to the heads of Elders, Oxygen, LJ Hooker Home Loans and Loan Market to find out how the referral landscape between brokers and agents has changed in the past year and what defines a strong partnership, hear their plans for 2017, and get some tips from the coalface shared by their top brokers.

“It’s been a changing beast for many years,” says John Rolfe, head of Elders Home Loans, of the professional referral partnership between brokers and agents. “What’s probably changed over the years is people now are more likely to be pre-approved – so the opportunities between a real estate agent per se and a broker have diminished.”

Building strong bonds with real estate agents (1)As a result, other players in the market, such as banks and other lenders, are now establishing referral agreements directly with real estate agents themselves, Rolfe explains. “The lure of the dollar in a referral arrangement has become a lot stronger, and for a lot of brokers that’s made it very difficult because, quite often, depending on their arrangements,
they can’t afford to match those incentives.”

However, Alan Hemmings, general manager of Oxygen Home Loans, doesn’t think the agent-broker referral partnership has changed in the last 12 months. “It’s probably strengthened, if anything. More of the real estate groups are looking at building their own broker businesses, which is a similar model to us,” he says. Oxygen is the broking division and a fully owned subsidiary of McGrath Estate Agents.

“Ultimately, it still comes down to the relationship between the broker and the agent – nothing there has really changed too much.”

(Video) How to Build Relationships with Estate Agents

LJ Hooker Home Loans chief executive Paul O’Regan believes the past year has seen agents increasingly looking for more from brokers in a referral partnership. “There’s a lot of demand from the real estate side as to ‘hey look, where are the leads coming back to me?’, because traditionally lead flow has been from real estate to finance brokers. So I do think there has been a shift certainly from the real estate side, looking for a bit more from the broker side.”

O’Regan took up his role late last year, crossing over from his position as LJ Hooker Real Estate’s COO. “Spending five years in real estate and understanding the real estate side of the business, it’s certainly opened up my eyes to the opportunities that are ahead for LJ Hooker Home Loans.”

And the opportunity a referral partnership can bring has become clearer on the radars of both broker and agent, according to Sam White, chairman of Loan Market, which is part of the Ray White Group, where he is also on the board of directors.

“[Agents] are realising the importance of an expert broker and know that working with a good broker means more qualified buyers through their open houses and bidding at auctions, which is of course highly beneficial to their vendor and getting the best price,” White says.

“In addition, brokers are now grasping the importance of generating appraisals back to agents. Often, this occurs when a broker is communicating to their client base and arranging for an updated valuation on a property portfolio or recommending the property management services of the agent to one of their investor borrowers.”

Making it work
The referral landscape has never been short of competition, according to White, be it with agents or other sources, but this has only spurred on both parties to find innovative ways to add value to the partnership model. “In a slowing property market, agents and brokers are working well together to find new ways to bring more value to their respective clients,” White says. “Whether it’s a pre-approved client in need of a localised market report, or a landlord looking to offset the cost of repairs on their property, agents and brokers are seeing the value in working more closely and now enjoying technology designed to support this.”

But White stresses that the key lies in an alignment of culture, including personalities, respect and values. “When that alignment is not there, it won’t work,” he says.

To work well together, LJ Hooker’s O’Regan says the most important factor is communicating clearly. “The biggest part of this whole relationship is trusting each other, and that just comes from communication, and if either party fails in that area then the repeat business won’t come,” he says. “It’s the biggest thing with anything in business – if you’re communicating, whether it’s good, bad or ugly, at least people appreciate you are communicating it to them.” He adds that, when forming a referral partnership, brokers need to remember they a) understand how the agent’s office they are partnering with operates; b) get to know those working there; c) add value to the estate agent business.

(Video) How to Build Strong Relationships with Estate Agents!

Elders Home Loans has an internal partnership with Elders Real Estate, and Rolfe identifies the two things that a strong partnership relies on most: trust, and what he calls the WIIFM factor (What’s in it for me?). He says brokers need to be available, respectful and honest with the client and agent, who will want to know how the referral partnership will benefit their business. “So I suppose where things go wrong is where one of those two things break down – either party (particularly the agent) doesn’t feel they’re getting any sort of benefit. That’s where the communication is critical.”

Hemmings agrees that trust is a key element of a successful partnership. “Like building any relationship, it can take time. It’s about working with the agents, gaining their trust, and then the business does come. The way I describe it is, there’s really no difference between being a broker and being an agent – one sells the home, one sells the loan. The processes, the systems, all of that sort of stuff in the background is very similar – your prospecting, your networking – so the two roles really do go hand in hand.”

White also points out that the partnership provides the benefit of being part of a bigger team. “Too often we hear that broking is a lonely business. What we have seen is that when brokers and their teams are part of a broader group working towards helping the same customers, both successes and disappointments are shared. My view is that this sharing makes the highs all the better and the lows more manageable. We all learn from each other’s wins and losses. There is always someone to lean on and someone who inspires greatness.”

Building strong bonds with real estate agents (2)
“The key differentiator now is how you can integrate the systems used by agents and brokers and use technology to come up with a better solution for clients in either real estate or finance” - Sam White, Loan Market

A NEW TYPE OF REAL ESTATE AGENT IS COMING TO AUSTRALIA
A handful of companies have ruled the Australian real estate market for years, but perhaps not for much longer. A number of would-be ‘disruptors’ are moving into the real estate space, including both international and homegrown firms. In August, UK real estate agent Purplebricks launched in Melbourne and Southeast Queensland, offering sellers a flat fee of $4,500, compared to a cost of around $11,600 under the traditional commission model. Launched in the UK,

Purplebricks has no bricks-andmortar offices, and has grown to be the third-largest real estate agent in the UK, although its cut-price model has met with accusations of cut-price service. Purplebricks told MPA that at present the company “does work with mortgage brokers in the UK but not in Australia yet”. Mortgage brokers have a far greater share of the mortgage market in the UK, and Purplebricks has already partnered with brokerages. With no offices, Purplebricks real estate agents could have more to gain by partnering with established Australian brokers as they look to establish the brand’s reputation down under.


Building strong bonds with real estate agents (3)More than one way
MPA spoke to a number of brokers who have established successful referral partnerships with real estate agents to find out about the different ways they created a relationship of trust and collaborated on a typical deal.

Oxygen Home Loans broker Fabio De Castro is based at one of the McGrath real estate offices. “Each real estate agent operates differently, so it is imperative that you understand their individual businesses and align your services as a broker to their value proposition, because the minute they refer you to their customers you are an extension to their own personal brand.”

Elders broker Tamara Virgo, based in Esperance, WA, has structured weekly visits with her local agent and offers support at as many open homes as possible. Her main tip for brokers is maintaining open communication with the agent.

(Video) 5 Tips To Help Lenders Build Stronger Relationships With Real Estate Agents

“Our strongest point would be our communication between each other and our client. We make sure we keep each other updated and in turn our clients. Focus on activities [to] help each other, not just what you as a broker hope to secure from the connections. We find a united front helps get results and build trust amongst our client base.”

Paul Hixon is a Brisbane broker with Loan Market and works closely with its agent’s offices in New Farm to help educate them on the finance process as a whole, as well as give them ‘good news’ stories from the brokerage.

“Even experienced agents need help sometimes,” Hixon says, “and if we’re readily on hand to help, then they see you as their go-to finance guy. We get to present at the monthly sales meeting, and instead of talking about which bank has the best rate, we try to provide ‘good news’ stories of how we helped out in a deal. This normally includes small snippets of policy, which helps the agents learn policy for the area and the trip points they can look out for.”

When it comes to collaborating on a typical owner-occupier mortgage deal, Debbie Hutchings, LJ Hooker Home Loans franchisee in Queensland, says the aim of both the agent and broker is to make sure the client experience is so good they will recommend the service again. “The finance specialist provides a highly competitive product and service within a specific timeframe to ensure the client proceeds to settlement,” she says.

Hixon says Loan Market becomes involved with the buyer to put a pre-approval in place after the agent has established the buyer hasn’t yet spoken to a bank or broker. “This way even if the buyer finds a property through other agents we will still help them with a loan.”

Oxygen’s De Castro says: “When meeting buyers at open houses or over the phone, our agents will pose questions to try and identify if they are qualified for that particular home, which gives me a warm introduction when I contact those customers. Part of the process is for me to then meet with buyers to understand their needs and ensure their finances are prequalified so they can be in a position to make a decision when they spot the one property they would love to buy.”

Building strong bonds with real estate agents (4)

“Each real estate agent operates differently, so it is imperative that you understand their individual businesses and align your services as a broker to their value proposition” - Fabio De Castro, Oxygen

Plans for 2017
Oxygen has been part of McGrath for 13 years, and looking at the upcoming year Hemmings says they are in the process of recruiting for offices in Victoria, rebuilding their broker app, strengthening their use of social media, and working with the sales management within McGrath to generate more leads.

LJ Hooker Home Loans has launched a new business model in an effort to recruit more brokers, and Elders is also reinventing itself, while moving away from a franchise-based model to a fee-based one instead.

Rolfe says Elders is continuing its success in the rural and regional areas of Australia towards the direction of the big cities, essentially “bringing country values to the city”.

“Franchise agreements are a thing of the past, I believe. It’s too structured; you need flexibility – you need people to be able to feel free. My view is you build the relationship. If you’ve got a good enough relationship with any real estate agent, be it an Elders or another, that will be strong enough to be able to drive new opportunities for you.”

Along with a new technology platform set to launch in the third quarter of 2017, Loan Market has two other initiatives kicking off earlier this year. “One [is our] Broker Bootcamp led by our top Australian broker and aimed at doubling the number of customers a broker sees each week,” White explains. “The other – Leading Ladies of Loan Market – [is] an initiative designed to recognise and promote our best female business owners across Australia and New Zealand (and soon to be Indonesia) with a view to inspire and support the growing number of talented women now joining our business.”

Building strong bonds with real estate agents (5)

(Video) 3 Top Tips To Build Relationships With Estate Agents #insideliverpool #property #propertyinvesting

“Focus on activities [to] help each other, not just what you as a broker hope to secure from the connections. We find a united front helps get results and build trust amongst our client base” - Tamara Virgo, Elders

REAL ESTATE VR: THE FUTURE OF PROPERTY TECHNOLOGY
Virtual reality is set to change the way people experience and interact with property, saving homebuyers a great deal of time. In 2016, RealEstate.com.au launched Australia’s first virtual reality property app on Daydream, Google’s mobile VR platform.

The app enables potential homebuyers to explore and view a range of active listings on RealEstate.com.au in virtual reality.

REA Group chief inventor Nigel Dalton said, “By 2020, most Australian homes will have VR headsets, and we’re confident the leading real estate agents will embrace virtual reality to create a brand-new experience for a whole new generation of property seekers.

(Video) 5 Ways To Build Great Estate Agent Relationships And Source More Property Deals

“Virtual reality has the unique ability to give us back time, which is the most precious commodity we have. Real estate VR will create time for everyone, whether that’s property seekers, agents or property managers.”

FAQs

How do estate agents build relationships? ›

What should investors do in order to build fruitful relationships with estate agents and get priority treatment? Attend open home inspections. Give them your details. Show the agent you are a serious buyer, treat them with respect and reply to phone calls and emails.

How do you build relationships with brokers? ›

5 Ways Carriers Can Build Strong Relationships with Their Brokers
  1. 1) Look Beyond Competitive Pricing to Add Value.
  2. 2) Follow Through on Commitments.
  3. 3) Invest in Relationship-Enhancing Technologies.
  4. 4) Don't Overlook the Role of Company Culture.
  5. 5) Know What Sets You Apart.
17 May 2021

What do real estate agents struggle with the most? ›

19 Problems of being in a real estate industry [With solutions]
  • Not having enough listings.
  • Lead cost is high as compared to the conversion ratio.
  • Not having an established sales process.
  • Not knowing where the deal is in the sales process.
  • Failing to leverage technology.
  • Failing to leverage on referrals.

What are the three most important things in real estate? ›

 If you have been involved in real estate for any length of time, you've heard it said that the three most important things when it comes to real estate are “location, location, location.” I've heard nationally-recognized experts say that over and over on national media.

How do real estate agents build trust? ›

Here are five ways you can become a real estate agent people trust:
  1. Create an accessible realtor profile with past experiences and credentials. ...
  2. Use client testimonials to your advantage. ...
  3. Be available and listen. ...
  4. Provide clients with additional resources. ...
  5. Don't make promises you can't keep.

How do I attract my realtor to my brokerage? ›

Here are six ideas you can use to attract top talent to your real estate brokerage.
  1. Guide Them to the Right Real Estate License Course. ...
  2. Offer a New Agent Training Program. ...
  3. Provide Continuing Education Courses for Experienced Agents. ...
  4. Invest in PropTech. ...
  5. Create a Culture of Support and Growth. ...
  6. Get Visible.

What connections should a real estate agent have? ›

Successful real estate agents have a vast network of contacts within the market they serve. This list of connections should include other real estate agents and brokers, potential buyers and sellers, and all the other players in the real estate industry, such as appraisers, home inspectors, and mortgage loan officers.

Should you speak to multiple brokers? ›

Using multiple mortgage brokers can be possible, although it might not be a good idea, particularly if they're both submitting applications on your behalf.

How do you beat estate agents tricks? ›

How To Steer Clear of Tricks
  1. Do your own research – Look into the local market on comparable properties and check their sold prices. ...
  2. Don't reveal your maximum or minimum price – Keep hush to the estate agent as to the lowest price you can accept or highest price you can bid.

How do you stand out in real estate? ›

5 Ways to Stand Out as a Real Estate Agent in a Large City
  1. Find Your Niche. In a small town, you'll be selling a little bit of everything. ...
  2. Develop a Strong Online Presence. ...
  3. Use Social Media to Expand Your Presence. ...
  4. Be Client-Oriented. ...
  5. Sponsor a Community Event. ...
  6. Be a Standout Real Estate Agent.

What makes people successful in real estate? ›

Successful Agents are Always Learning

It is not just learning from experience, it is also proactive and intentional research. Successful real estate professionals read books, watch videos, attend seminars, listen to podcasts, read blogs, and more. They are expanding not only their knowledge but their horizons.

What are the keys to success in real estate? ›

10 Tips To Help You Become More Successful As A Real Estate Agent
  • Enhance Your Knowledge Of The Market. ...
  • Don't Conform To Negative Stereotypes About Real Estate Agents. ...
  • Team Up With Other Real Estate Agents. ...
  • Find A Mentor. ...
  • Leverage The Reputation Of Your Brokerage Firm. ...
  • Use Technology To Streamline Your Business Practices.

What makes the most in real estate? ›

Real Estate Broker

A career as a real estate broker is one of the highest paying and lucrative professions in the real estate industry. On average, experienced brokers take home a six-figure pay. You can only achieve this number once you get a significant amount of good reputation.

What are the 5 ways a salesperson can earn trust? ›

5 Ways to Build Trust With Prospects
  • Educate and Inform. People look to experts for solutions and advice. ...
  • Be Empathetic. This starts with asking engaging questions and being a good listener. ...
  • Be Relevant. ...
  • Engage the Prospect on Their Terms and Time-frame. ...
  • Follow Through.

What are 4 aspects of building trust? ›

According to the Integro Trust Model, trust is based on two main areas – Communication and Consistency. Then, within these two foundations are 4 key behaviors that build trust: Acceptance, Openness, Congruence, and Reliability.

What are the 3 skills of building rapport? ›

Human beings can build rapport by connecting through shared interests, mutual understanding, and empathy.

What are the 4 steps to build rapport? ›

Follow these six steps to build rapport:
  1. Check your appearance.
  2. Remember the basics of good communication.
  3. Find common ground.
  4. Create shared experiences.
  5. Be empathic.
  6. Mirror and match mannerisms and speech appropriately.

What are the 3 fundamental principles of building rapport? ›

If you want to build rapport with customers, you need to succeed with the 4 Principles of Rapport: empathy, authenticity, similarity, and shared experience.

How can I grow my real estate portfolio fast? ›

Building Your Real Estate Portfolio: Tips And Hints
  1. Start Small. ...
  2. Consider Exponential Rather Than Linear Increases To Your Portfolio. ...
  3. Learn Your Local Market. ...
  4. Take Detailed Notes. ...
  5. Research Your Financing Options. ...
  6. Live And Breathe Numbers, And Understand The 1% Rule.

Where do Realtors get most of their leads? ›

1. How Do New Real Estate Agents Generate Leads?
  • Developing paid or organic online lead generation campaigns.
  • Leveraging social media.
  • Prospecting expired listings.
  • Cold calling.
  • Attending in-person networking events.
  • Sending physical mailers out to their communities.

What is the fastest way to get real estate clients? ›

Table of Contents
  1. Buy Real Estate Leads.
  2. Engage With Your Community.
  3. Ask Existing Clients for Referrals.
  4. Create a Website.
  5. Post On Social Media.
  6. Specialize In a Niche.
  7. Try Cold Calling.
  8. Host Open Houses.
29 Aug 2022

How do Realtors meet more people? ›

Stay active on local online forums and groups. This is a great way to meet people and establish yourself as a community expert. Neighborhood Groups - As a real estate professional, you should be tied into your community and/or a community that you work in.

What makes an estate agent stand out? ›

Making a unique presence in your community with events, relevant virtual resources, and consistently great photography on your listings can make you really stand out as a real estate agent. Be sure to highlight unique features of your listings to curate experiences for your ideal buyers.

How do you know if you have a good broker? ›

A good broker is a qualified professional.

That means having all the necessary licenses and registrations, a good deal of university-level work in finance, and plenty of experience. A not-so-good planner is someone who got into financial planning by default, or through another avenue.

Should you have all your money with one broker? ›

Many people have several types of brokerage accounts, including both taxable and retirement accounts. Keeping all your brokerage accounts with the same company can make it easier to keep a balanced, diversified portfolio.

How do you know if a broker is good? ›

Jump to our picks for the best brokers for every kind of investor.
  1. Look at commissions on the investments you'll use most.
  2. Look for brokers with a track record of reliability.
  3. Pay attention to account minimums.
  4. Watch out for account fees.
  5. Look at the pricing and execution fine print.
  6. Consider tools, education and features.
25 Jan 2022

What should you not tell an estate agent when viewing? ›

Never let the estate agent know your bottom line (if you're selling) or your maximum budget (if you're buying). Otherwise the chances are you'll end up having to settle for it. If you're selling, it's important you're on the same page as your estate agent.

How often should you chase your estate agent? ›

Don't delay as your buyer's solicitor can't progress anything until you have done this. Top Tip: Chase your solicitor at least once a week every week until you get your keys! Your solicitor is the gate keeper to your sale/purchase taking either 6 weeks or 16 weeks!

What gives real estate agents the most visibility? ›

If you've figured out how to become a real estate agent, you'll know that the key to expanding your leads is to join events.
...
Joining community events
  • Seminars.
  • Networking meetups.
  • Happy hour.
  • Holidays/seasonal events.
  • Neighborhood cookout.
27 Apr 2022

How can a Realtor stand out in 2022? ›

5 Ways to Stand Out as a Real Estate Agent
  1. Maintain a Professional Online Presence. These days, it's practically impossible to succeed as an agent without a robust online presence. ...
  2. Choose a Specialty. ...
  3. Be Highly Responsive. ...
  4. Become a Great Communicator. ...
  5. Invest in Networking. ...
  6. Build a Reputation For Quality.

How do I dominate the real estate market? ›

Those who are in pursuit of the luxury Real Estate business, know that it needs specific strategies and tools in order to succeed.
  1. Stay Relevant With Your Network of Home Buyer & Sellers. ...
  2. Find Partners With Experience in Real Estate Marketing. ...
  3. Invest In The Right Real Estate Marketing Tools.
22 Apr 2021

What are the best property words? ›

100 Real Estate Words That Sell
  • alluring.
  • architecture / architectural.
  • attention-to-detail.
  • beamed ceilings (wood)
  • beautiful.
  • brand new.
  • breathtaking.
  • bright.

How can I impress a real estate client? ›

Talk from experience, bank on your knowledge

A client would, hence, want to be sure that you are trustworthy and have sound knowledge. While guiding difficult clients, back your conversations with facts. You should be able to talk about different aspects of the property you are pitching to them.

What is the most profitable position in real estate? ›

14 high-paying real estate jobs
  • Property accountant. ...
  • Real estate broker. ...
  • Realtor. ...
  • New home sales consultant. ...
  • Compliance specialist. ...
  • Real estate agent. National average salary: $85,081 per year. ...
  • Real estate attorney. National average salary: $95,701 per year. ...
  • Mortgage loan officer. National average salary: $152,639 per year.

Are attractive Realtors more successful? ›

Attractive agents don't necessarily earn more annually than less attractive agents. The houses they sell go for a higher price, but they sell fewer houses than do less attractive agents (presumably because each house is on the market for longer).

What are the three most important words in real estate? ›

There is an old adage, that the three most important words in real estate are 'Location, Location, Location'.

What are three important qualities in real estate? ›

Here are six soft skills real estate professionals need, including the ability to negotiate and communicate.
  • Communication. Communication may be the most important soft skill of them all. ...
  • Active Listening. ...
  • Social Cues. ...
  • Negotiation. ...
  • Patience. ...
  • Tactfulness.

Do most millionaires do real estate? ›

Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate. There are several reasons for this, but in today's article, we'll share seven reasons why millionaires invest in real estate.

What do top Realtors make? ›

Real estate agents' earnings range quite a bit, from a modest $25,000 or less to more than $1 million annually. Agents' salaries are usually based on commission—a percentage of the sales price that they split with their brokerage.

Who is the highest paid realtor? ›

Ben Caballero, a current Guinness World Record title holder and No. 1-ranked real estate agent in the U.S., set a new record for home sales in Dallas-Ft. Worth last year.

How do you build relationships with buyers? ›

Four simple techniques to help you develop rapport with your buyers are: mirroring and matching, empathy, sharing common experiences, and active listening. We often don't know why we like or dislike people.

What is the most common agency relationship in real estate? ›

A home buyer or seller can establish an agency relationship with a licensed real estate agent by engaging in one of the following: Express Contract: A listing agreement is the most common example of a written contract between an agent and a home seller.

What are the 4 principles of building relationships? ›

The 4 Principles of Building Good Relationship With the Students
  • Positive Energy. ...
  • Time Together. ...
  • Care and Responsibility. ...
  • Fun Activities.
10 Jun 2019

What are the 3 keys to building customer relations? ›

3 keys to building customer relations, according to the experts. Some of the simplest wisdom about customer relations is the best: Be kind. Treat everyone as a human being. Know your stuff.

How do you attract serious buyers? ›

Here are some strategies you can use to attract serious offers only:
  1. Prepare Your Home for Sale.
  2. Create an Impressive Listing.
  3. Promote Your Listing Effectively.
  4. Choose the Right Time to Sell.
  5. Ask For Proof of Funds or a Pre-approval Letter.
  6. Work With a Qualified Listing Agent.
17 Oct 2021

What are the two 2 requirements to create an agency relationship? ›

This relationship has two essential components: (1) the A has either express or implied authority to act for the P, & (2) the P controls the acts of the A. An agency relationship requires the consent of both parties, and their intention to create the relationship “must find expression in either words or conduct.”

What is the most efficient method for forming an agency relationship? ›

Express Agreement

The typical written agreement is a listing agreement or a buyer's agency agreement. The written agreement is the most appropriate and legally safe way to create an agency relationship.

Videos

1. Simple BUT Effective Ways to Build Up Relationships With Estate Agents
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2. How Mortgage Brokers and Lenders Create Relationships With Local Real Estate Agents
(Ricky Carruth)
3. Notary Signing Agent Build Relationships + LIVE EXAMPLES | Market to Real Estate Agents
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4. How to build relationships with estate agents
(The Property Mentor)
5. How to Use Data to Build Relationships with Real Estate Agents
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6. building relationships with your real estate agents | Featuring Tina Schildt
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