Wow! 60 days ago I was penalized by Google for reciprocal linking and I wasn't even a serious offender. At most I had about 100 reciprocal links. I went from #3 for the search term "atlanta real estate" to the 5th page. Needless to say, the phone calls stopped and the listing inquiries stopped coming in. I was not the only one who had this penalty imposed. Some (like the Advanced Access websites) had 30 day penalties. Others, like mine, who have a Real Estate Webmasters site had penalties that lasted between 1 week and 60 days. Some still have the penalty. Much has been written recently on this subject and even Matt Cutts responded saying that most of the penalties would be between 30 and 60 days.
Do you still have reciprocal links with other real estate agents that are helping you increase your search engine results? Do you think that they are justifiable based on referral business?
Google doesn't believe you. In fact, there is no reason to think that Google will stop with these websites that were hit. The second penalty for the REW websites was longer than the Advanced Access penalty. If there is another round of penalties levied, it will likely be even more severe. Google doesn't like their search results manipulated and if you have reciprocal links with other REALTORS, that's the way Google see's it.
What should you do? That's completely up to you. If you leave your links up, you run a risk of a severe penalty. Everyones risk tolerance is different. If you leave them up, you run the risk of being reported to Google by envious real estate agents who don't have search results as high as you. If you are penalized, you will lose al of your internet business. Is that worth the risk?
I removed all of my reciprocal links from my Atlanta Real Estate website. You should too.