How To Get Real Estate Referrals From Your Past Clients And SOI
How And When Should Real Estate Agents Ask For Referrals
To grow their business using the people in their network, real estate agents need to learn how to ask for real estate referrals. There are many different sources to ask for referrals including friends and family, your SOI, other agents in different farming areas, local businesses, and finally your recent clients. Many real estate agents fail at asking for referrals for various reasons. Some do not know how to; some do not know when to ask and others fear they might appear pushy or desperate for business. Let’s face it: there are many agents who feel uncomfortable asking for referrals.
In this article, we will go through the necessary skills and steps to ask for real estate referrals. After all, referrals are one of THE most effective and cost-effective ways to generate quality leads in real estate. Therefore, it is vital for agents to know how, when, and who they should ask for real estate referrals.
Why Agents Should Ask for Real Estate Referral?
People move every 7 to 10 years on average. This means it’s probable that you know someone who knows someone who is in the middle of the process of moving to a new house either as a seller, buyer, or even both. Or maybe there are people who are going to stop renting their homes and buy their own. These people could be your next clients. This is the good news.
The bad news, however, is that these people may not even know you exist or may have forgotten you. Your job is to make sure you are always on top of people’s minds. Every time you remind your clients of your work by referrals, you increase your chances of getting referrals. As a matter of fact, you should not be afraid of asking for referrals. On the contrary, it should be a consistent part of your business.
Why Agents Don’t Ask for Referrals
There are many reasons and answers to the above question. Some simply do not care but most agents have no idea how to ask for referrals. They imagine it would harm their reputation as an agent. As though asking for referrals means they do not get enough clients and are desperate and asking everyone to do what they are supposed to do (attract leads). But the truth is agents work by referrals, even the most successful agents work this way. You need to understand this yourself before asking others for referrals. Once you make your peace with this fact, then you will not feel shy anymore.
When to Ask for Real Estate Referrals
When you ask for referrals is also essential. First off, you do not need to wait until you are done with a client and they are happy inside their new home. You can ask for a referral through the transaction process. Real estate is a pretty tense process for many buyers and sellers. They are worried about the outcome of one of the most important events of their life. Therefore, you need to pick a time when they are happy and satisfied with how things are going. Pay attention to them, when they are happy with you, and thank you even after a small step in the process, that’s the time to ask.
It is also obviously said that when the client is not happy or nervous or even worse angry with how things are going (after a while when np buyers have been found for their property) it is probably a bad idea to ask for a referral. You might try your luck, but chances are you will not receive any.
Who to Ask for Real Estate Referrals
Every aspect of asking for referrals matters and has a direct impact on the outcome. In this section, we will review who are the most important people to ask to get referrals.
Close Friends and Family
When you are new to the business have almost no network. Nobody knows you and what you do. Therefore, your best chance is to ask people who know you closely and care for you. They are the ones who will introduce you to others for sure because they care for you. Do not take this for granted that your friends will automatically introduce you to others. Ask them.
Sphere of Influence
A sphere of Influence includes all the people who know you and like you. There might be people who do not like you, count them out. They are not included in your SOI. These people are also good options to ask for referrals because they know who you are and what you do and because they like you.
Happy Clients
In order to increase your chances of getting referrals, you might think it is best to ask everyone in your clients and customers, however, investing in those who are very happy with your services is your best bet.
Long Time No See!
There are people in your sphere of influence with that you have been out of touch for a while. You might be tempted to give them a call and ask them to introduce you to people who need your services. This is a brilliant idea, but people may not have a positive view of you if you have an “ask” for them right away. First, engage with them in general conversations and after a while, ask for referrals. The first-time call after a long period of being out of touch is not the best time.
Other Agents
You can always ask other agents you meet at conferences who have a different farming areas. However, remember that you need to first create a friendly relationship with those agents so that they are willing to do the favor. You should also show that you are willing to do the same for them once you find out someone in their area needs real estate services.
Read More: 3 Ways REALTORS® Can Become The ‘Digital Mayor’ for Their Neighborhood
How to Ask for Real Estate Referrals
How you ask for real estate referrals matters. Let’s have a review of the key points you need to have in mind:
Ask Directly
Do not be shy and get that thought out of your mind. You will not seem pushy if you have done everything you can to help a client and now they are happy. You will seem desperate when the client has not enjoyed working with you very much. Choose the right person and you will be fine. Once you have the right person, ask directly for a referral. You can do it in person, through emails, etc.
Show You Care
While you are in the middle of the process with a client or when you have closed a deal, try to show that you care for them and will do things you are not expected to. Send them links to valuable content, products, or services that you think your client needs and will find valuable. This is a simple and straightforward way to win their hearts and create an exceptional experience for the client. When the clients are happy, they tend to share their happiness with others who they care for. That might bring you some referrals.
Show Gratitude
When someone does something nice, thanking them increases the chances of the same action happening again. Yes, you will get what you want when a client sends a new client your way and might think you are done, but do not think of referrals as a one-time goodie. The same person will send more people your way if you simply show that you appreciate what they are doing and are grateful. A simple phone call, handwritten note, etc helps. After all, they are not going to through any trouble. They just need a little motivation.
Believe in Yourself
Veterans in real estate, those who have been in business for a long time have no problem realizing how important they are and how valuable. However, those new to the business have a hard time believing that they are doing something great. Therefore, they feel weak when asking for referrals. You need to accept the fact that your client needs you and your level of service are high, and you deserve referrals. Believe in the fact that it is your responsibility to get others to know you are there to help others who might need you. Do not leave the impression that you are not even sure of the value of your services by using phrases like “if it is not too much trouble” or “I do not want to bother you”. People need to know you are there to help and can offer great value.
Don’t Give up Yet
Asking for a referral will not be easy in the beginning. The first few times you will get that awkward feeling but that’s okay. Whatever you do, just do not give up. After you have asked for referrals about 10 times you will get rid of those feelings and be comfortable.
Choose Your Words Wisely
Words can have the same meaning but convey different connotations. The word referrals itself can make you uncomfortable and it might have the same effect on the audience. The good news is you do not have to use the exact word to get the desired result. If you think the word referrals seems pushy and needy, go with other words like an introduction. Ask your clients to introduce you to their friends and family.
Asking for Real Estate Referrals Tips
Here are a few tips that will help you get better at asking for referrals and expanding your network:
Be Good at Your Job
It does not matter how hard you try to get referrals and how good you are at asking for referrals if you are bad at your job and deliver mediocre service. People will not introduce you to anyone if they are not happy with you. Therefore, the first step to getting referrals is making sure that you make your existing clients happy and go out above and beyond to help them. Show your clients that they come first. Always.
Set Goals
In order to make it a part of your marketing efforts, you need to set goals for the referrals you get. Think about your current rate of getting referrals and increase it a bit to have a new goal. If you are new to the business talk to other agents about their experiences to set a goal for yourself. Be committed to your goal and do everything you can to achieve your goals.
Have Patience
Referrals are one of the most effective ways to grow your business, but they are a long-term investment. You will ask people to introduce you to others and in the meantime, you try to stay on top of their minds. This can take time until they actually see someone who needs your service. Therefore, you should not expect immediate results. Have patience.
Real Estate Referrals: Final Words
Client retention is critical in real estate, but client acquisition is even more important. Your real estate business can benefit a lot from real estate referrals. In fact, they are the most effective and cost-effective marketing methods to get new leads. It is a must-have marketing strategy.
Many agents, especially those new to the business, pass on the idea as they find asking for real state referrals awkward. It is not weird if you are delivering quality service and you deserve it. Make sure your client is happy and then believe in yourself and the services you offer. Let your clients know that you are willing to provide others with your services as well.
While asking for referrals, pay attention to who you are asking. Always ask people who like you and are happy working with you. Ask when they are happiest and choose your words wisely. Have a goal for yourself and stick to it. Then you can enjoy the free leads that your great service is bringing to you.
Read More: Real Estate Digital Marketing Best Practices: Converting Leads Effectively
