Learn the proven referral strategies that top realtors use to consistently receive a steady stream of real estate referrals. This blog post reveals the secrets to unlocking a referral-driven business.
About 88% of real estate buyers and sellers rely mostly on recommendations from friends or family than any other advertisement method. This shows how powerful word-of-mouth referral strategies can help to expand your real estate business.
Besides, it’s more expensive to keep spending on ads when you can build a loyal customer base to do it for you. And if you’re ready, then this blog post is for you.
Here, we’ll explore five proven strategies to help you get more real estate referrals. We will also provide insightful tips for each strategy to guide you toward generating quality leads.
But, first, let’s see why you shouldn’t ignore real estate referral marketing.
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Why Are Referrals Important for Realtors?
The National Association of Realtors found that a substantial 39% of all property seller-agent relationships began through word-of-mouth recommendations.
Furthermore, another 27% chose to deal with agents they had already dealt with before.
What makes referrals so indispensable for real estate agents is that they lower your average customer acquisition costs. Plus, they have high conversion rates and also save time and stress, allowing you to focus on other aspects of growing your business.
Now let’s explore five effective strategies to attract high-quality referrals for your real estate business.
Our Top 5 Real Estate Referral Strategies
Here are our five favorite strategies for getting more referrals from customers.
1. Provide excellent service to your clients
The first step to generating quality real estate referrals is to provide excellent service.
This includes understanding and addressing their needs, preferences, goals, and challenges to make them feel valued and appreciated. It helps turn your clients into willing advertisers of your services.
And if you understand that 41% of buyers and 63% of sellers choose realtors based on a referral from friends or family members, then you won’t joke with this.
Some of the ways to up your real estate service delivery are:
- Send personalized gifts or cards to your clients on special occasions such as birthdays, anniversaries, holidays, or closing dates.
- Offer free consultations or advice on topics related to real estate such as staging, remodeling, financing, or investing.
- Provide useful resources or information such as market reports, and newsletters.
- Invite your clients to exclusive events or activities such as seminars, workshops, networking sessions, or appreciation parties.
- Connect your clients with other professionals or vendors who can help them with their real estate needs such as lenders, inspectors, contractors, or attorneys.
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2. Be honest and ethical
Many real estate agents are out only for themselves, but that shouldn’t describe you.
A survey by the National Association of Realtors revealed that 87% of buyers place a premium on honesty when choosing an agent. So you need to be forthcoming with your clients.
Be truthful, transparent, and fair with them, and respect their best interests. Also, follow industry regulations and best practices and avoid any conflicts of interest or unethical practices.
Upholding honesty and ethics when engaging with clients helps to build lasting agent-client relationships based on mutual trust. In the long run, it adds to your credibility as a real estate agent, distinguishing you from the others.
3. Ask for referrals from your client
Most of the time simply asking customers for a referral can get you one.
But it doesn’t happen by chance. It often requires a strategic approach that focuses on value and satisfaction. And you must be tactful about asking for referrals.
And here is how:
Ask when your client is happy with your service
Take note of positive feedback or signs of satisfaction. This is an ideal time to leverage their enthusiasm and turn it into a referral opportunity.
Ask when your client has just closed on a home
Closing a deal is a milestone that brings a sense of accomplishment. Harness this positive energy to request referrals, as they are likely to be in a celebratory mood.
Be clear about your intentions and convey your request with sincerity. Avoid beating around the bush and directly express your desire for referrals.
Be specific about what you’re asking for
Help your clients understand the type of referrals you’re seeking. For example, if you specialize in luxury properties, mention that you would
Explain the benefits of referring you to their friends and family
Help your clients understand how their referrals can positively impact the lives of their loved ones. Highlight the value, expertise, and exceptional service you offer to potential clients.
Share testimonials from other clients
Testimonials serve as social proof and instill confidence in potential clients. Share success stories and positive feedback from previous clients to demonstrate your track record of excellence.
Pro Tips: Ask for referrals at the right frequency, such as by following up regularly, reminding gently, or updating periodically.
4. Reward Referrals
Asking for referrals is not enough.
You also need to appreciate customers for bringing business to you.
You can give them gift cards, discounts, or even free services. Always choose something that they’ll appreciate. For example, if your client loves to cook, you could offer them a gift card to shop at a nearby kitchenware shop. If they love food, then arrange a surprise at a local restaurant.
Our favorite strategy is to reward them through a loyalty program.
We use Loyalzoo to automate our clients’ referral programs, making it easy for clients to refer their friends and family. With Loyalzoo, you can create a custom referral program that rewards customers with the things they want or love.
The software is easy to use and affordable.
You can check out our Loyalzoo review to see how this platform works and the exact ways we use it to build customer loyalty and drive up our retention rates.
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5. Build a Strong Social Media Presence
A strong social media presence is crucial for attracting real estate referrals.
Start by selecting the social media platforms that align with your target audience and business goals. Facebook, LinkedIn, Twitter, Instagram, and YouTube are popular choices in the real estate industry. Each platform offers unique features and caters to different demographics, so consider where your potential clients are most active and engage with them there.
Next, share relevant and valuable content consistently to keep your audience engaged.
This could include educational articles, market updates, virtual property tours, home improvement tips, success stories, and more. By consistently providing useful information, you position yourself as an industry expert and increase the likelihood of your followers sharing your posts with their networks.
Lastly, use social media automation tools like Sendible to manage your social media platforms.
With its array of features and tools, Sendible can schedule and automate your social media posts in advance. Plus, it tracks keywords, hashtags, and mentions, allowing you to engage with prospects and respond promptly.
Final Thoughts On Getting More Real Estate Referrals
Real estate referrals help you generate leads and foster business growth.
By tapping into them, you will capitalize on cost-effective and readily available leads, expediting the expansion of your business. And with the strategies in this post, you’re already one step ahead.
Now it’s time to go out there and supercharge your referral efforts and effectively minimize the time needed for acquiring new business.
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Frequently Asked Questions
1. What Is the Best Way to Ask for Referrals from My Clients?
There is no single method that works for everyone when it comes to asking for referrals. However, we suggest adopting a polite and sincere approach.
For instance, you could express your gratitude by saying, “I am happy that you are satisfied with my services. If you happen to know someone who is in search of buying or selling a home. Would you kindly consider referring them to me? Your support would mean a great deal to me.”
2. What Kind of Rewards Should I Offer for Referrals?
One way to show your appreciation to clients is by offering rewards that they will genuinely value. For example, you could consider giving them a gift card to a popular local restaurant or providing them with a discount on their next real estate transaction.
3. How Often Should I Ask for Referrals from My Clients?
When it comes to asking for referrals. It’s important to find the right balance. You don’t want to come across as too pushy. But at the same time, you don’t want to wait too long. A helpful tip is to request referrals once the transaction has concluded and your client is satisfied with the service provided.
4. How Can I Build a Strong Social Media Presence to Attract Referrals?
The first step is by having a clear brand identity and consistent messaging across all platforms. You should also share relevant and valuable content that will interest your target audience.
5. What Are Some Common Mistakes to Avoid When Seeking Referrals?
Some common mistakes that real estate agents make when it comes to getting referrals include:
- Not asking for referrals at all
- Asking for referrals too early or too late
- Not being specific about what kind of referrals they’re looking for
- Not offering any rewards for referrals
- Not following up with their clients after asking for referrals
6. How Can I Track the Effectiveness of My Referral Marketing Efforts?
If you wish to know how well your referral marketing endeavors are doing, you can use referral tracking software like Loyalzoo to monitor the quantity and the sources of referrals you’re receiving.