5 Simple Tips to Increase Your Real Estate Referrals
There are many real estate agents in the world today, but not all of them can rely on referrals to generate business. The good news is that you don't need to be a member of an exclusive club or have a large list of contacts to get real estate referrals from family, friends, and past clients.
Referrals are a key part of generating more leads and closing deals. It's one of those things that all real estate agents should be focusing their energy on- as it will not only help with new client acquisition but also provide greater opportunities to keep working with past clients who have already been happy with an agent they've worked with before.
Keep in mind these 5 simple tips and you'll be able to increase your referral rate significantly.
Remember How Real Estate Referrals Work
Have you ever gone to a restaurant and received poor service or mediocre food and then told your friends they should go there? Of course not.
When you provide great service, do what's expected of you without any surprises or disappointments, and build a rapport with your clients over time, they are more likely to refer their friends and family members who are in need of real estate services.
This means that the better your service, the more referrals you'll generate. This is why it's so important to take care of those who have already trusted you with their business- because they're one of the main ways that new clients will find out about you and start building a relationship with you.
Real Estate Referrals Require A Relationship
Providing great customer service is a great start, but you have to make sure that you keep the relationship going. According to the National Association of REALTORS, the average person only hears from their agent once after the close of a transaction. If you don't maintain a relationship with them, you won't be getting referrals from them, no matter how great you are. (Are you doing a good job of keeping your relationships healthy? Download our Healthy Database Checklist and find out.)
You have to treat people like friends rather than a walking, talking paycheck. Make sure that you reach out to people even after the transaction has been completed. Send them a thank you note and let them know that you value their business. Send them a quick text once in a while to check in with them. Congratulate them on the anniversary of their home purchase. Friend them on Facebook and engage with their posts.
Remember that friends don't just talk about work, so don't make every conversation with them about real estate. Talk about the latest episode of "Breaking Bad" or whatever show you are watching at the time. Share a funny meme you saw on Facebook. You know, things you would talk about and share with an actual friend...
Change How You Ask For Referrals
We've all seen it -- on business cards, websites, and email signatures -- in bold lettering, "The Highest Compliment We Can Receive Is The Referral Of Your Friends, Family & Business Associates. Thank you for your Trust!"
Please kill me now.
Here's the thing about referrals - outside of real estate agents, the average person doesn't know what that even means! When asking for real estate referrals, you need to use language that the people you are asking understand. Here are a few scripts that you can use instead of asking for referrals.
- Do you know of anyone who might be looking to sell their home in the next few months?
- By any chance has anyone you know mentioned investing in real estate in today's market?
- Are any of your friends or family looking to buy a home that I might be able to help?
Ask For Real Estate Referrals On Facebook And Social
Social media can be a great source for real estate referrals as long as you are not making these mistakes. Because you are already engaging with people on Facebook and other social media platforms, you are naturally developing a relationship there, so now you need to give people a reason to reach out to you. Try some of these scripts:
"I just met with a couple that was blown away when I told them what their home could sell for in today's market. I think many people are in the same boat. Would you like to know what your home is really worth? PM me or just leave a comment below and I'll reach out to you."
"There is a massive inventory shortage right now. If you, maybe a neighbor or a friend, is open to selling their home in the next 6-12 months (or sooner), I've got something very interesting that I'd like to share with them. This offer is only being given to friends and family, so please make sure they let me know that you sent them my way. You can have them inbox me or call me at 123-456-7890."
Expand Your Real Estate Referral Network
Referrals don't just come from past clients. The best agents know that referrals come from a variety of sources - friends and family are obviously included in this category, but also think about people that you know well but may not necessarily consider friends - your neighbors, your hairdresser, or the person at the grocery store, for instance.
Another source of real estate referrals is Realtor to Realtor referrals, although these all usually require that you pay a referral fee and sign a referral fee agreement. Are you in a Facebook group with a bunch of other agents from around the US? You can start there. There are also various real estate referral networks online that you can join and relocation companies that you can sign up with. You can also network with other like-minded businesses such as contractors that you already work with that may hear about people who are looking to move (and of course, you are referring your clients to them as well - win-win!).
Getting Referrals Doesn't Have To Be Hard
It is easy to understand why real estate referrals are so valuable and could very well make a difference in your business success and income. Getting real estate referrals doesn't have to be hard, but you need to be intentional and consistent about it.
If you need a tool to help you with these aspects, we developed Chirp™, a product designed specifically for your sphere of influence and past clients to help generate referrals (without sounding like a used car salesperson). Learn more about it here.
How have you generated referrals? Tell us in a comment below or on social media!