The real estate industry is extremely competitive. With thousands of real estate agents now licensed, there are so many choices today for people when they are looking for an agent.
One of the most effective ways for realtors to increase their income is by growing their business through real estate referrals. Referrals are one of the most cost-effective ways for lead generation as all they take are a little bit of your time and effort.
To be successful in real estate, you need to learn how to create a system that generates referrals. Here are five common ways you should consider:
- Provide Superior Customer Service
The first thing needed to obtain real estate referrals is providing superior customer service to your clients. Before someone considers referring you, their experience with you needs to surpass their expectations. You will not likely get many, or any, referrals if the services you provided were mediocre. The services you provide to your clients must be top-notch and be consistent with your clients’ needs and expectations.
When you first start working with a new client, you need to determine your clients’ expectations and then work to surpass them. Also, you need to ensure that your clients' expectations are realistic by discussing their finances, the current marketplace, and what they can realistically expect during this process. Disappointed clients are not very likely to refer you.
Appreciate and Reward Your Sources of Real Estate Referrals
Always take time to show your appreciation to your clients that refer you- whether the referral results in a commission or not! If you only acknowledge referrals that turn into sales, this dampens people’s desire to continue doing so. Show them and tell them how much you appreciate their referral. Hopefully, this will encourage them to keep referring to you and generate more high-quality leads. Send your referrers a hand-written thank you note, a small gift, or even a department store gift card.
You don’t close a sale; you open a relationship.
- Promote Relationship Building
After you have worked for a new client, you need to be continually making an effort to build on that relationship in the future. One way of doing this is by sending them helpful articles like homeowner resources or special events being held in their area. Continuing to be useful after a transaction will help build trust and keep you “top of mind” when asked if they know of a good real estate agent in the future.
Even if a referred lead doesn’t do business with you right away, you need to think about building a relationship with this person. Who knows, this person could become a client in the future or even a source of real estate referrals. Keep the possibilities open. By keeping in touch with them, you keep the chance alive of doing business with them in the future.
- Build Relationships with Other Professionals
As a real estate agent, your typical day brings you together with many like-minded professionals such as home inspectors, renovation companies, mortgage lenders, and brokers. When you build strong relationships with other industry professionals, this allows each of you to cross-market each other’s services and increase your chances of obtaining additional referrals. And as a bonus, your relationships with these industry experts will make your clients’ real estate transaction even smoother.
Building relationships can be done by attending business shows and real estate industry events. Besides, social media is an excellent way to keep in touch with your clients and associates. You should be looking at building your network in multiple ways, which will increase your real estate referrals over the long run. The stronger the relationship you build with your clients dramatically increases your chance of being referred.
- Branded Marketing
By giving out branded materials, you make it easier for your clients to refer you. Give some business cards to your clients. You’ve now made it simple for them to pass along your contact information.
Design your branded materials so that your message is consistent and shows your personality. All branded materials should match your social media accounts and your website. By having everything consistent, this allows for a quick confirmation of your professionalism.
Real estate referrals are one of the best ways to grow your business. Building a robust referral system will decrease the amount of money spent on marketing and lead generation. Referrals have a higher closing rate than other forms of lead generation. Together with a good attitude and the right CRM, real estate referrals will contribute to your career's growth and success.