Have you ever made a referral that didn't turn into a paycheck? It might make you think, "Why go through the effort?" and just not bother in the future.
When making referrals, most agents make the mistake of simply trying to find a highly qualified agent. But an agent's experience is only part of what creates a successful referral. Read on for tips on how to match your clients with an agent they'll stick with over the long term.
Done correctly, referrals can translate into paychecks with minimal time and effort on your part. There are three important steps to making this happen:
Step 1: Find Good Prospective Referral Agents
(This is the step that most agents take.) Locate agents who work in the geographical area in which your client needs help, and who have the appropriate expertise. Use your brokerage referral system, call brokers in the area, use your CRS referral directory, the ABR referral directory (or other organizational directory to which you have access), or call upon contacts that you have met at various networking events.
These days, a great way to locate prospective agents (while learning about their personalities and work philosophies at the same time) is through the Active Rain online community of real estate professionals.
Check out Active Rain by clicking on our invitation link, http://rs6.net/tn.jsp?t=89hqzccab.0.f7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Factiverain.com%2Faction%2Freferrals%2Ftheagentguideto go to their main page, and from there click on the "Localism" logo to search for agents by location anywhere in the U.S.
(Active Rain membership is free, and you do not need to be a member in order to use it to search for agents, but it is such a great up and coming resource that we recommend you jump on board and create your membership soon!)
Unfortunately, Step 1 is where most agents stop. The next two steps are crucial in making sure a referral is successful.
Step 2: Interview the Referral Agent
A good agent doesn't necessarily mean a good experience for your client. Matching personalities and working styles is also critical.
Research prospective referral agents by checking out their credentials on their websites and/or reading their blog articles. People tend to write less formally in blogs, so those can provide good insights into someone's real personality.
Interview the agent to see if they are a good match for your client using these 5 simple questions:
1. "What is your style - formal or casual?" (Both attire and process.) Do they do a buyers presentation, or ask their client sign a buyer's agreement?
2. "What is your approach when a client has found a house they like?" What information do they provide them with to help them evaluate pricing? (Find out whether or not the agent provides plenty of data, counsels based upon their experience, and/or shows them comparable price data.)
3. "What days and times do you typically work?" Are your clients relocating and making weekend or weekend trips, or will they need showings in the area during the day or evenings?
4. "What is your communication style?"Do they prefer phone calls or emails? How quickly do they return phone calls? (Also find out their online response time. Many people expect quick turnaround from emails, while some agents check them less than daily.) Make sure you match tech savvy clients with tech savvy agents.
5. "What services do you provide your clients when you take a listing?" (For example, staging, professional photography, types of advertising, virtual tours, open houses, or brokers opens.) What does your client expect, and what will they most need help with?
Step 3: Set the Stage for a Successful Hand-Off
Tell the referring agent and your clients what to expect from each other. This is a key part of creating a "warm lead" versus a "cold call" for the referring agent! Facilitate the initial contact, then follow up within one week with a quick call or email. If necessary, keep trying until you find the right match for your client.
Tip: Let your client know beforehand that it's perfectly OK to tell you if things are not working out, and that you would be happy to find them an alternate agent. (Most clients will feel reluctant to tell you this, and will quietly find another agent on their own instead.)
Once the transaction is complete, send the agent a thank you note with several of your business cards to have on hand when they need to make a referral in your area! Follow up with your client also, to thank them for allowing you to make the referral. Let them know you would be happy to help their friends and family personally, or to make out-of-area referrals as needed.
Here are some good sources for finding referral agents:
Active Rain Referral Groups - Here are a couple of our favorites:
Referrals Only Group: http://rs6.net/tn.jsp?t=89hqzccab.0.o7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Factiverain.com%2Fgroups%2Freferrals
Realtor Referral Network Group: http://rs6.net/tn.jsp?t=89hqzccab.0.p7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Factiverain.com%2Fgroups%2FRealtorReferralNetwork
Pet Friendly Real Estate Group: http://rs6.net/tn.jsp?t=89hqzccab.0.t7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Factiverain.com%2Fgroups%2Fpetfriendlyrealestate
(Remember, Active Rain gives agents a free blog, so you'll be able to read peoples' blog postings also.)
Council of Residential Specialists Directory:
http://rs6.net/tn.jsp?t=89hqzccab.0.u7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Fwww.crs.com%2FFind_A_CRS
Accredited Buyer Representative Directory:
http://rs6.net/tn.jsp?t=89hqzccab.0.v7itzccab.gdkvdybab.11&ts=S0265&p=http%3A%2F%2Fwww.rebac.net%2FMembershipDirectorySearch.aspx
Search for agents with certifications recognized by the National Association of REALTORS® on their website. (You will need to have or create a login for this site, but you do not need to be a member to use the directory):
http://www.realtor.org/romultim.nsf/pages/fs_fre%20altor?opendocument
The Bottom Line: As long as you are respectful and keep in mind that practices sometimes vary by location, the other agent should not feel threatened by an interview. If you feel that someone is becoming needlessly defensive in response to polite questioning, remember that they'll probably treat your client the same way, and it's probably time to move on.
Check out more great real estate marketing tips at our website http://www.theagentguide.com/realestatemarketingtips.html
By Michelle Blue
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