Referrals are one of the most powerful sources of leads for real estate agents. According to a survey by the National Association of Realtors, 41% of home buyers and 66% of home sellers chose their agent based on a referral from a friend, neighbor, or relative. Referrals can also help you build trust and credibility with your prospects, as they are more likely to trust someone who was recommended by someone they know and respect.
However, getting referrals is not as easy as it sounds. You need to provide exceptional service to your clients, stay in touch with them after the transaction, and ask for referrals in a tactful and effective way. In this article, we will share some strategies that can help you get more referrals and grow your real estate business.
Provide Value Before, During, and After the Transaction
The first step to getting more referrals is to provide value to your clients throughout the entire process of buying or selling a home. This means not only helping them find or sell their home, but also educating them, solving their problems, and exceeding their expectations.
Some ways to provide value before, during, and after the transaction are:
- Before the transaction: Send your prospects relevant and useful information, such as market reports, neighborhood guides, home buying or selling tips, etc. Show them that you are an expert in your field and that you care about their needs and goals.
- During the transaction: Communicate frequently and clearly with your clients, keeping them updated on the progress and status of the deal. Answer their questions promptly and thoroughly, and address any issues or concerns they may have. Negotiate on their behalf and protect their interests. Make the process as smooth and stress-free as possible for them.
- After the transaction: Follow up with your clients after the closing, and thank them for their business and trust. Send them a thoughtful gift, such as a personalized card, a housewarming basket, or a gift card to a local restaurant. Ask them for feedback and testimonials, and use them to improve your service and showcase your success.
Stay in Touch with Your Past Clients
Another key to getting more referrals is to stay in touch with your past clients and maintain a strong relationship with them. According to a study by Inman, 88% of home buyers and 85% of home sellers said they would use their agent again or recommend them to others, but only 23% of buyers and 21% of sellers actually did so. This shows that there is a huge gap between the intention and the action of referring an agent, and that agents need to do more to remind their clients of their value and availability.
Some ways to stay in touch with your past clients are:
- Send them a monthly or quarterly newsletter: A newsletter is a great way to keep your clients informed and engaged with your business. You can include relevant and valuable content, such as market updates, home improvement tips, local events, etc. You can also use your newsletter to showcase your recent listings, sales, and testimonials, and to ask for referrals in a subtle and friendly way.
- Call them on special occasions: A phone call is a more personal and effective way to connect with your clients and show them that you care. You can call them on special occasions, such as birthdays, anniversaries, holidays, etc. You can also use these calls to check in on how they are doing, congratulate them on their achievements, and offer your assistance if they need anything.
- Invite them to client appreciation events: A client appreciation event is a great way to show your gratitude and appreciation to your clients, and to strengthen your relationship with them. You can invite them to events such as a picnic, a movie night, a wine tasting, etc. You can also use these events to introduce your clients to each other, and to encourage them to refer you to their friends and family.
Ask for Referrals in a Tactful and Effective Way
The final step to getting more referrals is to ask for them in a tactful and effective way. Many agents are hesitant or afraid to ask for referrals, because they don't want to seem pushy or needy. However, if you have provided value to your clients and stayed in touch with them, asking for referrals should not be a problem. In fact, most clients are happy to refer you to others, as long as you ask them in the right way and at the right time.
Some tips to ask for referrals in a tactful and effective way are:
- Ask for referrals at the peak of satisfaction: The best time to ask for referrals is when your clients are most satisfied and happy with your service, such as when they have just signed the contract, received the keys, or sold their home. At this point, they are more likely to give you a positive response and to share their experience with others.
- Ask for referrals in a specific and targeted way: The worst way to ask for referrals is to say something vague and generic, such as "Do you know anyone who is looking to buy or sell a home?" This type of question is easy to ignore or forget, and does not motivate your clients to take action. Instead, you should ask for referrals in a specific and targeted way, such as "Do you have any friends or family who are looking to move to this neighborhood?" or "Do you know anyone who is looking for a home with these features?" This type of question is more likely to trigger your clients' memory and to generate qualified leads for you.
- Ask for referrals in a reciprocal and beneficial way: Another way to ask for referrals is to frame it as a reciprocal and beneficial exchange, rather than a favor or a request. For example, you can say something like "I'm so glad that you are happy with your new home. I really enjoyed working with you, and I would love to work with more people like you. Do you know anyone who could benefit from my service?" or "I'm always looking for ways to grow my business and to help more people achieve their real estate goals. Who do you know that I should talk to?" This way, you are showing your clients that you value their opinion and that you are offering your service as a benefit, not a burden.
