I'M GOING TO BURN ONE OF MY POSTS FOR THE WEEK TO TALK ABOUT MAKING REFERRALS, ACCEPTING REFERRALS, WORKING WITH REFERRALS AND GENERALLY MANAGING INCOMING AND OUTGOING REFERRALS. 

This post is inspired by a post by Sky Realty.  This subject is near and dear to my heart due to the fact that I work with a network of wonderful Maryland and Virginia real estate agents and brokers who kindly accept my buyer referrals as a major percentage of their business, and mine.  I also refer to agents and brokers to develop the relationship where I can make more referrals.  So far this year, I've made about 300 buyer referrals. 

My intention was to post the below comment to the Sky Realty post, but, as often happens, the thoughts went on and on and it became just too much for a "comment". 

THE COMMENT NOT POSTED WAS:  I suggest that agents who live by voice mail will not get referrals from me.  That might not matter to much to them because, after all, there is LOTS AND LOTS OF BUSINESS OUT THERE TODAY and agents who live by voice mail obviously have more business than they can handle and don't need to get my call.

When I have a buyer referral and call an agent, I do NOT leave a message because I have a buyer sitting by homefinders.comwaiting for an agent to call.  If I don't get someone to call them back quickly, THE BUYER WHO IS SITTING AT THEIR COMPUTER will likely tire of waiting and just continue their search for help and is likely to find another agent.  After all, they found me on the Internet, why couldn't they find another agent?  Fact is, they can and will.

This doesn't take a RHODES SCHOLAR TO FIGURE OUT.

                                                    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

WHO ARE OUR REFERRAL AGENTS?  Agents and brokers to whom I refer buyers, and an occassional seller, or buyer with a home to sell, are all experienced and, just as important, nice folks.  I know their personality and I know their experience.  That is already done.  I know their track record.  I know their dedication to helping consumers of real estate services. 

Homefinders.com agents

Agents left are some of the wonderful referral agents that accept my referrals.

Most of my referrals go to brokers I've known for some time and have a record of success helping my buyer referrals.  One broker in Northern Virginia sells between 30 to 60 of my referrals each year and has done so since 1999.  Others are former agents in my brokerage who "graduated" and, after getting their own broker license and opening their own company still receive most of their business from my buyer referrals.  I value these agents and brokers and go to them first with a buyer referral because:

  • They answer their cell phone.
  • They make contact with the buyer almost immediately.
  • They sell my referrals.
  • They give me regular feedback.
  • They pay me the agreed referral fee.

Obviously, if I try regularly and an agent doesn't answer their phone, they go to the bottom of my list for that area.  If I get calls from a buyer that the agent who was supposed to contact them did not, I know for the future that the agent isn't interested in buyer referrals.  If I make several referrals and there are no successful sales, I know that, either my buyers are not given good service or the agent isn't paying me.

If the agents accept referrals and don't provide feedback about progress, I eventually drop their name because it appears that they are not partners.  Agents who do not provide feedback don't get referrals.  This has always given me a chuckle.  Agents will provide detailed, regular feedback to relocation companies to whom they are paying 30-40% of their commission, but don't believe that feedback is important when the referral fee is only 20% and there is no paperwork involved.  

Referral Business Is Good Business.  Not only that, the agent doesn't have to use any capital to generate the buyer business and they don't have to pay the referral fee until settlement.  But, agents neglect this valuable source of business regularly.  Referring agents are taken for granted, perhaps because they are so easy.  "Gee, all I have to do is answer my phone and Lenn sends me a good buyer."  I had an agent a few years back who eventually went on to get her broker's license who remarked once to a question about her busines, "It's easy, I answer my phone and Lenn sends me money."  The operative part there is "answer my phone".  Until the agent answers the phone, they don't know whether I'm sending a $200,000 buyer or a $1,000,000 buyer.  I don't keep high priced buyers to sell myself because that's not my job.  I sell a few new homes, but I do not work resale buyers.  I send everything to our agent/broker partners. 

Lastly, pay me the agreed referral fee.  If our agreement is a 20% for sales over $200,000, don't send me 10% on a $600,000 sale and a promise of more money in the future.  Saving $1,800 on a referral fee is a Pyrrhic victory.  I'm not interested in telling folks how to run their business, but if agents accept referrals, they should respect the referring agent that works very hard to get the buyer business.  Otherwise, don't take referrals.

WHAT IS THE SOLUTION? 

Don't be a secret agent.  Be available for contacts from agents and brokers who make referrals (that would be me).  My process for contacting agents and brokers to inquire about whether an agent wishes to accept a buyer referral is:

  • 1.  Call the cell phone number.  I call the cell phone number first because many agents these days really use their cell phone number of record as their main business contact.  If I don't get an answer, I DO NOT LEAVE A MESSAGE.  What?  No message?  NO, NO MESSAGE.  I have a buyer waiting for an agent to call to arrange a meeting, tour a home, get information about an area, generally find an agent.  Leaving a message isn't going to help that buyer waiting for a call.  I don't know when my message will be retrieved.  I don't know when the agent will be returning phone calls.  I don't even know if the agent is in town.  WHAT GOOD IS LEAVING A MESSAGE??
  • 2.  Call the agent's office number of record.  They may be in the office, or the office may be able to link directly to the agent.  However, I do NOT go to voice mail to leave another message.  I know they're not in their office so leaving a message is just having two messages out there.  Still doesn't tell me when the agent will call.
  • 3.  Start looking for another agent.  Go to my "Referral Agents" roster and start going through my list to begin calling other agents. 

HELP ME OUT.  If you're going to be away for vacation for a few days, send me an e-mail or phone call.  Of course, you don't have to.  But, if I call and find a person is on vacation, all I can say is "Thanks a lot". 

NO SECRET BUYERS PLEASE - I don't make buyer referrals unless the buyer has provided a name, phone number, location and price range.  If the buyer contacts me by phone, I may not have an e-mail address.  The agent can get that because writing e-mail addresses is risky.  If the buyer contacts me by e-mail, I work the lead until I get a phone number and THEN I'll send it to an agent.  Obviously the referral will have specified the location and price range because a lot of the contacts came from our CONTACT form which asks for the above information.  If the buyer has contacted me by phone, I'm going to engage them and get more and more information about their needs, all which helps the referral agent.  But, I need to speak with the agent to impart buyer information that will help that agent make a sale.

Of course, if your business is good and you don't need buyer referrals, just don't answer your phone. 

UPDATE Sat. a.m. :  Several comments have been posted by members who are not in my market area.  I'm a licensed broker in Maryland and Virginia.  Buyers that I'm referrring to agents and brokers have contacted me from my web sites.  I have had a strong Internet presence since 1995.  But, it is focused on generating business, home buyers interested in Maryland and Northern Virginia.  I don't want to mislead anyone to thinking that I have a supply of referrals for other areas, I do not.  However, my experience with local agents who live on voice mail is fully transferrable to other areas and other agents and brokers. 

From time to time, I will have a friend, local home owner who is relocating and asks me for a referral to a buyer's agent in other areas.  In that case, I would contact serveral agents/brokers, make sure they are experienced and qualified to help the buyer referral and make a referral. In the past 11 months that I've been a member of Active Rain, I've made 5 out of my area referrals.  So, that is not a large segment of my business and not the focus of this post.  Active Rain is a wonderful resource for referrals. 

Courtesy:  Homefinders.com


_______________________________________________________________________________________________________


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68 Comments on ARE YOU A SECRET AGENT? RUMINATING ABOUT AGENT TO AGENT REFERRALS

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JUL
21
2007
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Debbie White wroteWow, Lenn.  I use over 7000 minutes a month on my phone.  I guess I'd better hope you don't call at the wrong time.  I do answer the phone when it rings, and please know that if I don't answer, it's because I'm either already talking on it, or I'm out of the service area.  Much of Alaska is without coverage, even here "in town".

I would have to wonder though... you get the first person who jumps on the phone.  Is that necessarily the best agent?  Or just the one who doesn't have anything to do at the time?

Debbie White.  My post clearly says that I'm referring to brokers and agents that I know and know to be experienced.  These area agents and brokers that I've worked with before and are a part of our referral "group".  My post was clear that I'm not trolling for referral agents.  I already know the agents.  I just want them to ANSWER THEIR PHONE. 
~~~~~~~~~~~~~~~~~~~~
"WHO ARE OUR REFERRAL AGENTS?  Agents and brokers to whom I refer buyers, and an occassional seller, or buyer with a home to sell, are all experienced and, just as important, nice folks.  I know their personality and I know their experience.  That is already done.  I know their track record.  I know their dedication to helping consumers of real estate services.

Agents left are some of the wonderful referral agents that accept my referrals.

Most of my referrals go to brokers I've known for some time and have a record of success helping my buyer referrals.  One broker in Northern Virginia sells between 30 to 60 of my referrals each year and has done so since 1999.  Others are former agents in my brokerage who "graduated" and, after getting their own broker license and opening their own company still receive most of their business from my buyer referrals.  I value these agents and brokers and go to them first with a buyer referral * *  * * "
~~~~~~~~~~~~~~~~~~~~~~~~

Now, does that sound like I'm looking for the "first person who jumps on the phone"?

 

6:12am • #49
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Jeff Geoghan wrote:    Lenn, if you need a referral agent in Lancaster County, PA then I'm your guy.  I try to answer all my calls...especially now that I'm getting more and more out of the area leads from my AR involvement.  I'm impressed that you've done 300 referrals - that's a lot of contacts for only half a year.

Jeff.  I don't get a lot of contacts for the Lancaster area and it's not well covered by MRIS.  However, I do get inquiries for York. 

Give me a call and we can chat. 

Thanks for commenting. 

6:18am • #50
290,106 Points 33 Featured Posts Outside Blog

As with Teri above I work in areas that don't have cell service, or they have sporadic service.  Sometimes I change my voice mail to say I will be in that area and will not be able to get calls for however long I am there.  But then again sometimes I don't :(.

 

10:31am • #51
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carol.  I appreciate your thoughtful post.  What's missing is the buyer, sitting at their phone/computer waiting for a call back from an agent who will help them find a home.  Of course, the agents that let their phones go to voice mail are agents and brokers who have ASKED for my referrals and understand fully the importance of a timely response to the buyer. 

Kathy.  We're not in Alaska.  We're in a urban area with a Verizon tower on every corner.  That said, if I have a buyer for a Southern Maryland area, I may tell them that if the agent isn't in their office their cell may not get the call.  I try my best to make these connections with buyers and agents work.  I just sometimes need a little help from the agents. 

 

10:48am • #52
Attended Rain Camp

Your message is great..."answer the phone if you want business".  I am thankful however other agents do leave messages because yesterday I had walked away from phone for 5 minutes... I do not take it to the phone to the bathroom, the echo is horrible...and on returning there was a message from another agent with a referral.  As would have it, I got her voice mail, said I would LOVE THE REFERRAL and to call with the info. She calls back immediately, while I am on another call of course...she leave the information I need to start working - name, phone number, and address.  Called the referral within 20 minutes of the first call and have an appointment to list a home.  Then called the referral agent agian and left a voice message that I had spoken with person and set the appointment.

Lenn, if you know the agent you are calling will get the job done, give them a chance to call you back within a few minutes.  I certainly would not be offended when I call you back if you said I had a referral but I need someone to get in touch with these folks immediately if I am calling you after 15 minutes.  Anyway, best of luck with your referral business!

 

 

 

2:43pm • #53

Thank you for a "punch in the gut" message.  I have often run into the same scenario with agents not answering there phones and sometimes I leave a message , but most often I do NOT.  I used to think that maybe I was "in the wrong" for doing it, but your words say it all.  I opened my own brokerage 1.5 years ago and get leads from my website www.CTonlineRealty.comand since our MLS is now mostly statewide, I get many out of my immediate market area leads.  I try so hard to get them to an agent in their market, sometimes I am successful, other-times I am not, for they WON'T wait around forever...why should they. I wouldn't ! 

 So thank you Lenn for sharing your expertise, I look forward to reading your postings.  My motto is "education is the KEY to a successful transaction", and I will never ever be to old to learn.   PS Should you happen to need a broker in Eastern/Northeastern CT.....better known as "my neck of the woods"  I would be honored to hear from you. 

Dee Pizzoferrato
5:12pm • #54
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carole.  I understand your arguments.  However, it is centered around your schedule and procedures for handling your phone.  Buyers looking for real estate services don't know or care about your schedule or telephone habits.  They know one thing and one thing only.  They searched the Interent for real estate help and they got me on the phone.  We're 50% home.  Now, once I speak with them for a few minutes they are sure that I or "one of the experienced buyer's agents that specializes in the home type and location they are looking for will call you back as quickly as possible."   They are excited.  They feel like their problems are all over.  They will wait.  But, they will NOT wait and wait and wait. 

They'll just go back to the Internet and retrace their steps and find another web site that promises help.  FUNNY THING IS, THEY ARE LIKELY TO FIND ANOTHER OF MY WEB PAGES.  So, they keep looking until they find someone. 

If I call an agent and get voice mail, I leave a message.  Fine.  How do I know when the agent will return the call?  I have no way of knowing what they are doing or even where they are.  Wait 5 minutes to 1 hour, you say.  Am I supposed to keep my phone open waiting for your call??  Suppose another buyer calls.  Should I tell them that I must keep my phone clear because I'm waiting for a call return from an agent??? Buyers don't care.  They want help and information and they want it NOW. 

Now, I'm about the most independent cuss you'd ever want to meet.  But, when it comes to bringing business in, I know who gets priority and it is the consumer contacting me for our services.  No, they will NOT wait.  I found that out 12 years ago when I started Internet advertising. 

I have no interest in how an agent handles their phone.  I do know that if they want my business, they will ANSWER their phone and not let calls go to voice mail. 

When we have an agent meeting, I always remind agents, "Don't call me and tell me that I called you."  Which is what some agents do when they see that I have called but didn't leave a message.  Not necessary.  I know I called.  If you missed a call, you missed a buyer.  If it's an hour or two hours or 10 mintues, I have gone to the next agent.  I have several good experienced agents for every niche of my market area and most have learned to take my call.  Smart agents who have a settlement or training scheduled and can't take telephone calls let me know in advance that they will be unavailable between ___ and ___.  I respect that and, if I get a buyer call during that time for which that agent is the best call, I can handle that.  But, I may have 3-6 good referrals in a day and if agents don't help by being available, I can't ask all of those buyers, not to mention me to play telephone tag all day long because agents want to live on voice mail. 

But, if the agent simply uses voice mail for their own convenience and the rest of the world evolves around their schedule, that's fine too.  They just won't get referrals from me.  It's up to them.  Agents who have worked with me for some time and know that my telephone calls mean are going to make a good $100,000-$150,000 by simply from my referrals.  Seems to me that it's not too much to ask to just answer the phone.

 

7:18pm • #55
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Kathy.  I do "give agents a chance" until they learn to take my calls.  But, I know that if I start trying to satisfy 10 agents' schedule, I couldn't possibly get my job done, that of connecting buyers with good agents. 

If I had only one buyer and one agent to connect, it would be easy.  I have a number of buyers and a number of agents to get together daily.  Agents have to cooperate if they want the buyer referrals.

Every once in a while, I give a referral to an agent and then the buyer calls me back several hours later complaining that no one called.  How do we look then?

Timely response is the only answer. 

7:31pm • #56
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Dee.  Thanks for commenting.  Sounds like you "get it".  Mine is not an easy job.  But, I love it and it works.  I need good referral agents and the agents need my referrals.  Everyong has to work together. 
7:33pm • #57
600,280 Points 45 Featured Posts Outside Blog

You've made some interesting points, Lenn. When I'm with clients, I don't answer my cell phone. After reading your post and realizing that you're not the only one who thinks that way --- when I'm not able to answer my phone, I'll now forward my calls to either my assistant or a team member, so that the calling person WILL get to talk to a human being, one who knows my schedule both at the moment and also when the buyer will be in town. Of course, if you knew me well, and knew my team, you'd know that either my daughter or my son would do an excellent job with your buyers, so you might choose to have them handle the buyer instead of waiting for me to call back ...

only if you knew me, of course, and if you knew them. 

7:41pm • #58
157,985 Points 1 Featured Post

Lenn ... you are so right about answering the phone!  I try to answer my cell phone whenever it rings however there are times when I'm in these "dead zones" which seem to riddle countryside in Northern Virginia.  If a message is left on my phone - I return the call as soon as I can. 

Referrals are a perfect business builder and I rely on this as my one of my main sources of business.

I can't imagine an agent taking a referral and then not paying the full referral fee!

I would love to work with your buyer and seller referrals if you need an agent in the Fredericksburg, Fauquier, Prince William, Culpeper areas!  I service most of the lower part of Northern Virginia. 

7:48pm • #59
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Sharon.  I'm sure you arrange to be covered. What I'm reading from some comments is that some agents handle their phone for their own convenience.  That's fine.  Doesn't help to sell real estate.  But, so be it.

Rita.  Thanks Rita.  We have pretty good coverage for that area. Lenn

8:27pm • #60
JUL
22
2007
1,334,064 Points 128 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Lenn, Answer your phone, now there's a new concept. The beauty of the cell phone... it can be answered, responded to with a text message or return the call from the caller ID.   Not brain surgery.

You do have this buyer referral "thing" down perfect. You are a role model in Real Estate.

12:20am • #61
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carol.  Rather than call an agent, get voice mail, leave a message and then wait and hope the buyer waits, I would simply go to another agent.  I have no desire to chase agents to accept referrals.  I want agents who want buyer referrals and if they do, they make it easy for me to make contact and give them the buyer information.

Good buyers and sellers don't grow on trees and they take considerable time and resources to bring to our network.  Buyers especially need to be engaged quickly if we are going to make them clients.  If agents put up barriers to the stream of communication, they could cost me a good buyer.  I don't want agents in my network of referral agents who make my job harder than it needs to be. 

Since it's clear that I couldn't rely on your to check Caller I.D. and answer my call which you know is going to be a buyer or seller referral, you simply wouldn't be an agent in my referral network.

Gee.  That was easy.

7:01am • #62
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Margaret.  Thanks for the kind words. 

I wish I had it down perfectly.  But, I do work hard at it.  Thanks for the agent referral. Helen is a jewel and just settled one of my referrals. 

She answers her cell phone.  If she's with someone, she tells me when she'll be making a call back and I call the buyer and set it up.  If Helen didn't answer her cell, that lead would have gone to someone else. 

 

7:05am • #63

What you've discussed is exactly how I was brought up in the real estate bidniz.  Operating otherwise is shear arrogance, and like you, I absolutely won't tolerate it.

Bill Cherry

Bill Cherry
7:53am • #64
1,946,064 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carole.  Where did I say that my criteria is to "take an agent who hasnothing better to do than watch for YOUR number to pop up"??  I didn't say that and you know that is false. 

Inventing criteria for me isn't going to work.  My criteria, as has been stated, is experienced agents knowledgeable about the area of interest to the buyer.  To help that buyer, I need agents who can do so quickly. 

I don't know why you're so freaked out by a broker who appreciates folks who answer their phone. 

I never said your way is wrong.  I said that if agents want referrals from me, they'll answer their phone. 

You seem to have some pathological bent to justify NOT answering the cell.  I merely say, fine, don't answer your phone.  It is your phone.  It is your practice.  It is your way of doing business. 

My way of doing business is to give timely service to buyers and agents.  Having 1/3 of a team jerking everyone else's chain by putting them in voice mail and making them wait for your return call is arrogent and dismissive.  Agents and brokers fight the voice mail merry-go-round daily because agents like you believe that they are too important to be helpful.  I don't know if agents send calls to voice mail because they don't care or simply don't know any better.  If timely responses were not important, I'd just send everything out by e-mail.  I call because I need an IMMEDIATE response to whether that agent can help that buyer or NOT.  If it's NOT, I can go to the next agent.  That concept doesn't take a Rhodes Scholar to understand.  We all suffer in contract negotiations dealing with agents who don't answer their phone.  They are the bane of our existance.  Some agents don't return calls for hours, days or ever.   How are we to know when you'd come down from the mountain and make return calls????  I for one am not waiting nor am I making a valuable buyer wait.   

I'm obviously not going to be sending any business to you, but the message is the same to folks in my market area.  If you have your cell calls go to voice mail, you won't get messages from me. 

10:14am • #65

Lenn - this is precisely the reason why I have adopted creating new greetings for each day

  • "If I call an agent and get voice mail, I leave a message.  Fine.  How do I know when the agent will return the call?  I have no way of knowing what they are doing or even where they are.  Wait 5 minutes to 1 hour, you say.  Am I supposed to keep my phone open waiting for your call??  Suppose another buyer calls.  Should I tell them that I must keep my phone clear because I'm waiting for a call return from an agent??? Buyers don't care.  They want help and information and they want it NOW. "
This allows incoming callers to know that I will return their call within XX amount of minutes because I am with clients between X and X today.  If they get the message and it's not between X and X, they are assured that they will get a call back in no more than 30 minutes.  And, I make no exceptions for Sundays.  I will return calls (if it's an agent setting up a showing for the same or next day) that same day, but every thing else waits until Monday morning.
11:01am • #66

Lenn,

I have a perfect recent example for you.  Yesterday, I was out with a buyer from Atlanta (and I was SICK, very sick, but she drove up here and I was not going to let her down) and we looked at 12 houses.  There was one house that the office did not have the right combination to, so they paged the agent, NO CALL BACK after an hour.  I called the agent directly 2x and NO CALL back, this was yesterday afternoon.  And as of today and its noon, she has still not called me back and my buyer was geuninely interested in the property.  My buyer calls me first thing this a.m. and wants to make an offer on another house and asked me if I had heard back from this agent on the other house that we didn't get to see and I told her no.  She was flabergasted that this agent that is representing this seller would not return calls to interested buyers.  I know that if sellers knew this was going on, they would be furious, I know I would be.  So, right now I am preparing an offer on another house which could have possibly been going to the other. 

I get tired of my cell phone too - but folks just want to talk to the agent and if the agent doesn't want to take calls at a certain time, then someone should be covering for them.  Buyers and sellers want answers immediately or at least within a reasonable amount of time.  When I was part of a team and the broker was handing out leads, if you didn't answer your phone when he called he did not leave a message, he  moved on to the next agent and I think that is reasonable.  Agents that don't answer the phones, don't return messages need to give the business up.

I just returned a call to an agent who repeatedly thanked me for calling him back. He said, "I don't know if  you know this or not but it is very hard to get agents to return phone calls on the weekends."  Yes, I know ALL too well that agents do not return phone calls...................I will say this, always call 2x b/c we do, on occassion write numbers on whatever we can grab to write the message on and then we delete the message off our phones and we lose the paper -- I am scatterbrained at times.   

Our phones and our computers are the lifeline of our business -- try to do business without them.  AGENTS ANSWER YOUR PHONES, I HAVE AN OFFER FOR YOU!!!

11:13am • #67

Sondra,

The top coaching gurus are always telling us how we should, or they only work 4 days a week. I guess the listing agent got that memo. Too bad they did not get your call.

11:45pm • #68

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