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As a real estate professional, there are many different ways that you can gain new business. You can use marketing tools, strategies and techniques, and you can farm a specific demographic or geographic area. You can also network and publicize your services via social media channels and websites. Repeat clients can return to you for help in selling and buying properties, which generates incremental business.

Referrals are another important avenue for growing real estate business. Real estate referrals can come from current and past clients and from colleagues, friends, family and suppliers. In fact, according to National Association of REALTORS®  (NAR)  statistics published in May 2020, 39 percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 27 percent used the agent they previously worked with to buy or sell a home.

Rewards

Business that comes your way via referral is valuable in for many reasons. Referral business usually takes less time and fewer marketing resources on your part to acquire. You don’t have to expend effort and money to compile mailing lists, develop print and digital pieces, or cover mailing costs. Referral business often yields motivated buyers and sellers, which means the increased likelihood of completed transactions. Additionally, clients referred to you by a third party may be more inclined to trust you and your real estate expertise, which can lead to positive interactions and results.

Referral business can also provide important reinforcement and encouragement that you’re doing a good job. When someone takes the initiative to refer your services, they are giving you the highest professional compliment.

Results of Real Estate Referrals

With so many benefits, you may be wondering how you can increase referral business.  Here are five tips:

1. Ask for it. Tell current and past clients that you’ve enjoyed working with them so much that you’d appreciate them recommending your services to their friends and family. Let colleagues, family members and your real estate partners know that you’re eager to accept referrals as well.

2. Stay in touch. Continuing to communicate with past clients can help build relationships and keep your name on their minds. If they’ve heard from you recently, previous clients may be more likely to refer you to someone they know.

3. Be social. Ask for referrals on your social media channels and socialize by attending networking events. The more people you meet, the more chances you’ll have for referrals.

4. Go the extra mile. Build a reputation for service excellence by going above and beyond for your clients. When clients believe they’ve received exceptional service, they are more likely to recommend you to others.

Show clients that you care. To build the kind of long-term relationships that lead to referrals, it’s important to show clients that you care about them beyond the closing table.

For more articles like this, visit ahs.com/home-matters.

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