Real estate referrals can be the life blood of your business. There’s really no more powerful indication of a great agent than having a business built almost entirely upon referrals.
BUT – asking for referrals isn’t easy. For many, it feels a bit like begging. It’s as if you’re saying “I don’t have enough business, so please send someone to me so I can pay my bills.”
I can almost envision someone standing there wringing their hands, saying “Please help me.”
If you don’t want to ask, how do you get more real estate referrals?
This question has come up often in the reading I’ve done. One of the common answers is “Don’t ask. Just be referrable.”
However, I’ve heard from people over the years who say that some clients, friends, and family members don’t realize that you want referrals. They think you’re too busy to be “bothered” with more clients.
With both ideas in mind, I think the answer to getting more real estate referrals consists of many elements.
First, have a healthy measure of self-confidence.
I don’t mean “know-it-all” arrogance, but a quiet confidence that comes from knowing that what you do has value. You must believe that you can handle all of the responsibilities and duties assigned to you.
Knowing your worth gives you an aura of confidence that inspires trust.
If you want real estate referrals, people must trust that you won’t make them sorry that they mentioned your name.
Second, remember to conduct yourself as a professional with everyone you meet.
This applies to everyone from the grocery checker to your car mechanic. It applies even more importantly to those who play some role in your real estate transactions.
Think beyond the lender, the closer, the other agent, the appraiser, etc. to the home stager, the photographer, and even people hired to get a house ready for market. All of these people are watching you, and all of them are in a position to send business your way.
When I speak of conducting yourself as a professional, I am referring to the way you speak to people and the respect /regard you give them. The person who made a bathroom shine could be just as important to your successful transaction as the lender.
Third, if you want more real estate referrals, get acquainted with more people.
Get involved in something you care about. It might be your neighborhood watch, the Chamber of Commerce, or a 
non-profit that matters to you. It doesn’t matter what, as long it interests you and it’s an opportunity to meet and visit with people who will come to like you.
When you do interact with others, make sure they know what you do for a living. Talk occasionally about work. Mention a house you toured (or listed) that you love, a fascinating person you met, or how the new shopping center construction is affecting home values in the immediate neighborhood.
Number 4: Whenever you talk about real estate, talk with positive enthusiasm.
If you want more real estate referrals, you have to be positive about your job. Make sure your friends, family, and slight acquaintances know that you enjoy your work and have a positive outlook.
One of my copywriting clients missed out on a referral because a friend mistakenly believed that she only handled high-end homes. The friend thought she wouldn’t be interested in listing a house that was only $250,000 or so. She would have been interested! Now she makes it a point to let her friends know she handles homes in every price category.
Now is an especially important time to be up-beat.
You know people are going to be hearing doom and gloom about the real estate market and the economy in general.
It is all pretty much a mess right now, but people still do want to buy and sell homes. Let your past clients and the people in your sphere know that the market hasn’t fallen completely apart.
If someone asks about the state of the market, answer honestly, but do add a touch of optimism to your reply.
In addition to the current state of the economy, the next few months could be confusing to many as we wait to see the final outcome of the NAR lawsuit. Stay positive and put your mind to work on finding solutions.
Number 5: Never complain about your clients or the difficulty of their transactions.
Everyone gets a stinker for a client now and then, and everyone wants to scream about it now and then. But if you want more real estate referrals, don’t do it!
If you really need to vent, talk to your spouse, your child, or your parent. The rest of the time, shove that stinker out of your mind.
- Talk about the clients you appreciate most. mention how someone thanked you after a tough transaction – or sent you a gift.
- Talk about how cooperative some people are. Praise clients who help you help them.
- Talk about how much fun you had meeting someone from another country or someone who is in a profession you found fascinating.
Number 6: Don’t talk about being tired or having too much to do.
That sends the message that you don’t have time for/don’t want more clients.
When you make an effort to focus on the positive, you’ll find something good to say about almost every day.
Number 7: If you want more real estate referrals, stay in touch with your past clients and people in your sphere.
One of the primary reasons that clients don’t go back to the agent they liked or send friends to them is that the agent hasn’t stayed in touch. It’s not their job to keep track of you.
It is YOUR job to make sure they never forget you. So call, drop by to say hello, and/or send postal mail or mail regularly.
If you write a newsletter or compile market reports, send either or both to all of them. If you don’t, and you don’t know what to say, use my Event-themed staying in touch letters. This is a set of 26 letters – 2 per month plus New Year’s and Easter. If you mail once per month, it will last you for two full years.
Do also send your just listed and just sold cards – they show that you’re getting things done!
Here’s the cold hard truth:
- If you forget about them, they will forget about you.
- If you ignore them, they will ignore you.
- If you remember them, they will remember you.
What else can you do to encourage more people to give you real estate referrals?
One of Graham McGregor’s messages this week shared the perfect answer. He told about an agent who has a core list of past clients and people in his sphere that he communicates with twice monthly.
In one of those monthly messages, he gives a public thank you to all who referred a client to him in the past month.
Wouldn’t it be easy for you to do the same?
You could add that kind of thank you to your newsletter, to blog posts, and to social media, where it would serve two purposes. It would make those who referred to you feel good for being recognized, and it would send the message that yes, you do love referrals.
Additionally, wouldn’t it be easy to drop mentions of your gratitude for referrals when you’re talking with friends about the market, homes you listed, or buyers you’ve enjoyed helping?
You could say something like: “I’m so grateful to Mrs. Smith for referring Mr. and Mrs. Jones to me to sell their house. They are fun to work with, the house is beautiful, and it went under contract in just three days.”
#8 – and perhaps the most important!
Personally thank people for their referrals.
Mentioning them in a newsletter or online is good marketing, but do make a phone call AND send a hand-written thank you note. Let them know personally that you appreciate the referral.
You could (perhaps should) send a small gift as a token of your appreciation after the referred transaction closes.
And yes, such gifts are deductible marketing expenses. You may deduct up to $25 per person per year, plus the cost of engraving, shipping, etc. For details, visit this topic on the IRS website.
Referrals Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net
Think positive Image courtesy of jesadaphorn at FreeDigitalPhotos.net
Volunteers planting seedling Image courtesy of IndypendenZ at FreeDigitalPhotos.net
