Everything You Need To Know About Real Estate Agent Referrals

Posted on

The key to a successful real estate agent is referrals. Realtors need to be constantly marketing themselves to find their next client and referrals make the process much easier. While referrals from family, friends, and past clients are all helpful, agents can also get referrals from a real estate agent referral agency and from other agents.

What is a real estate agent referral?

A real estate agent referral is a referral of a real estate client who needs to buy or sell a home in the very near future. Marketers use the terms "cold," "warm," and "hot" to label leads. A cold lead is a person who has shown no previous interest in buying or selling, a warm lead is a person who has shown some interest, and a hot lead is someone who is ready now. A real estate agent referral is a hot lead. 

Why would another real estate agent refer a client to you?

Real estate agents refer clients to each other all the time. This can happen for a multitude of reasons. The client could be a seller referred by a Realtor who only works with buyers or they could be out of the agent's area because they are relocating to another city or part of the state. Referrals can also come from a real estate agent referral agency that handles multiple referrals for corporations relocating team members out of state.

Do you have to pay for a real estate agent referral?

While real estate agents do not pay each other cash up front for a referral, they do give the referring agent a portion of their commission when and if a transaction closes. Traditionally, the referring agent gets 25 percent of the recipient's commission, although this number can vary. While 25 percent does not necessarily amount to much, it can be a nice bonus. Plus, the referring agent or real estate agent referral agency can rest easy knowing that the client was well taken care of during their transaction. 

How do you get real estate agent referrals?

You can get real estate agent referrals in many ways. If you are experienced in working with business professionals who need to relocate to your area for business, work on becoming familiar with the real estate agent referral agency that large companies in your area work with. You can also attend national real estate conventions and network with agents from other states. 

Real estate agent referrals are a great way to add extra income to your bottom line and increase your overall client base. 

For more information, contact a real estate company, such as Justice Realty Group.