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Real estate referrals are the lifeblood of most top producers’ businesses. This is evident when you ask any highly successful agent where they find their clients. Inevitably, their answer will be “my past clients and sphere.” That’s wonderful and something to be admired, yet I’ve had many agents who are earlier in their careers ask me HOW these agents built this referral machine.
In this article, you’ll find nine tried-and-true ways to start and grow your real estate referral business. We’ll first cover what a referral referral is and how they can benefit your business. Let’s get started!
Summary
A referral estate referral occurs when a licensed agent or broker passes along a prospective buyer or seller to another licensed agent to handle a transaction. The receiving agent becomes the buyer or seller’s primary point of contact and representative, and the referring agent receives a referral fee if a transaction closes.
Sometimes, a real estate agent may choose not to work with a specific buyer or seller. Perhaps the client wishes to make a purchase that isn’t in the agent’s geographical area or their wheelhouse of expertise. Instead of giving up the business, the referring agent introduces the potential client to another real estate agent who is better positioned to help them.
Typically, once the referring agent introduces the client to the receiving agent, they will no longer participate in the transaction. Their work is done, and it’s up to the receiving agent to serve the client and close the deal.
Real estate referrals and referral fees encourage cooperation amongst an interactive network of agents and brokers. Developing a trusted referral network can generate new business for you (and your network). On the client side, referrals ensure that…