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The Right Way to Refer

By
Mortgage and Lending with Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI NMLS #138061 MMCD #1141

The Right Way to Refer

 

     Real Estate is local.  There's a lot of truth to that, and because of that fact, the real estate industry has a lot of opportunities for professionals to refer clients, family, and friends to those outside of their local area of expertise.  Clients relocate.  They choose a new town for school.  They move to retire.  They buy second homes.  The reasons are endless.  Even though there are endless reasons for referrals to occur, there are some folks who refer folks (what I would consider) the wrong way, and the way I refer (which I consider the right way).


Referrals from Mortgage Lenders

     So what's the wrong way to refer?  I'd have some people who disagree, but a referral should always be in a client's best interest.  If there's a paycheck involved, great, but that should never be the reason to refer.  The wrong way to refer is to send a referral for the sake of getting a referral check.  In the mortgage industry, referral fees aren't even allowed, so there's never a financial incentive to send a client to another professional.  Some people I've seen send a referral to the first name they can find on google, just to make the connection and get the referral fee.  Their poor clients are unaware, and the dice are rolled to see whether the client will be served well, poorly, or at all.



     And then, of course, there's the right way to refer.  Refer to someone you know, like, and trust.  One of the beautiful things about ActiveRain is it allows us to get to know people, find out who we like, and find out who we can trust. Through local market reports, industry"war" stories, and everyday interactions, we're fortunate enough to have an opportunity to get to know people all over the country in many different markets.  When someone needs help in an area, I check to see if there's someone I know, like, and trust in that area.  If there is, I get them in touch.  Usually with an email cc'ing both parties.  Other times with a phone call introduction, but I always like to give each party a heads up the referral will take place, then connect them and give them an opportunity to follow up with each other.  Beyond that, I stay out of it.



     I do check in to see how the experience went with the person I referred to in order to make sure the person felt I placed them in great hands.  Most often, they are more than happy.



     Within the past couple years I've had the chance to work on referrals to and from many people around the country that I met through ActiveRain.   Margaret Rome, Baltimore Maryland wrote about a great experience we had with a referral in the rain.  Elyse Berman, PA was also a great choice for a referral I had in Florida, and she also wrote about how great an experience ActiveRain can lead to.  David Henke and his team were able to help a friend of mine in Southeast PA buy his first home in a wonderful buying experience.

 

     I know these people.  I like them.  And I trust them.  I know my clients, whether they're my clients for a specific transaction or not, are in great hands.  At the end of the day, that's what I care about.  My referrals are a reflection of myself, and in making sure they are taken care of as I would take care of them myself is the right way to refer.

 

 

 

 

Posted by

John Meussner
NMLS ID #138061

It's more than a house - it's home.  So we offer a wide range of mortgage products at competitive prices to help our clients achieve financial security at home.  While we get great feedback on our prices and products, many clients say their favorite part of working with John Meussner & MasonMac is the level of service provided along the way.

Purchase money loans, Refinance, Renovation, Jumbo, FHA, VA, USDA, nonQM, HELOCs, and more

Licensed in
AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT,
and VA

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Comments(28)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is an excellent post, John. Sending a referral just to receive a fee is likely to backfire. Active Rain is a great way to find people you feel comfortable referring your valuable clients to and know they will be well taken care of.

Mar 09, 2018 09:41 PM
John Meussner

Sure will - I've seen referrals where the client ends up disliking the person that referred them to an unprofessional agent.  Always unfortunate when that happens, a referral should improve relationships, not ruin them

Mar 12, 2018 07:06 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Again as I said earlier tonight, it takes a minute but it really does matter and I really does get easier

Mar 09, 2018 11:50 PM
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

John,  I think you summed it up perfectly here "My referrals are a reflection of myself, and in making sure they are taken care of as I would take care of them myself is the right way to refer." 

 

A lot of us feel the same way.  We want our customters and clients taken care of like we would take care of them.

Mar 10, 2018 03:11 AM
John Meussner

Yes, yes, yes!  

Mar 12, 2018 07:06 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

There definitely is a right way to refer, and a wrong way. If we are sending buyers or sellers to someone else, we want them to be handled the way we would handle them. We can't just pick a name and send that lead over.

Mar 10, 2018 03:32 AM
John Meussner

Couldn't agree more, Kat.  It's a shame some people just want their cut

Mar 12, 2018 07:07 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I agree with you. A referral should always be in a client's best interest. 

Mar 10, 2018 03:44 AM
John Meussner

For best results, absolutely!

Mar 12, 2018 07:07 PM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Real estate always is and always will be Local!!!

There's a lot of truth to that, and because of that fact, the real estate industry has a lot of opportunities for professionals to refer clients, family, and friends to those outside of their local area of expertise. 

Mar 10, 2018 04:20 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

That ability to know people is one of the things I like best about using AR as a referral source.  People can put up a fake front for a little bit, but if you watch closely enough sooner or later their true colors come out.  In some areas I have multiple solid agents I can refer to, so Ihave the luxury of not just finding competence, but someone who has a personality that I think will mesh well with the buyer's personality.  I've got one of those active right now.  I've known the agent for years here, and the match is working very well.  Bill

Mar 10, 2018 04:38 AM
John Meussner

Always a beautiful thing when you know you've connected the right folks!

Mar 12, 2018 07:07 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning John Meussner,

You are so right your referrals are a reflection on yourself so the match must be right!

Mar 10, 2018 04:52 AM
John Meussner

Hi Dorie!  Yes, we must do a good job for people and send them to a good place to be served

Mar 12, 2018 07:08 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

This is certanly a site where you get to "know" agents far differently than phone 

or other introductions.....and more worthwhile.

Mar 10, 2018 06:17 AM
John Meussner

Couldn't agree more!

Mar 12, 2018 01:13 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

John Demonstrates our sense in common....

Mar 10, 2018 06:18 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

 AR really helps us get to know agents from around the country. I know who I'd choose to refer a client to after years of building relationships on this platform. 

Mar 10, 2018 07:23 AM
John Meussner

Couldn't agree more, I've met some great people around the country here in the rain : )

Mar 12, 2018 01:12 PM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi John -- referring a client/friend to the person best able to help them and work diligently for them is always the way to go.

Mar 10, 2018 05:02 PM
John Meussner

Absolutely Lottie!

Mar 12, 2018 01:11 PM
Gary & Melynda Wolter, Since 2001, 480-269-1164
ProSmart Realty - Mesa, AZ
Reliable, Premier Personal Service since 2001

After relocating we handed out 22 referrals to several different agents depending on the clients needs. Great blog!

Mar 11, 2018 07:12 AM
John Meussner

Thank you, and wow, 22?  Hope that good fortune is returned back to you : )

Mar 12, 2018 01:05 PM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

The FIRST place I'd look for a Realtor referral would be ActiveRain. That's where we usually find like-minded professionals.

Mar 12, 2018 11:10 AM
John Meussner

A lot of the time that's where I find them too, thankfully I usually already know them through their blogging!

Mar 12, 2018 01:05 PM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Good job - I do the same.    I have given out 6 referrals in the last 6 months, and all to AR members.     Great base to work with!

Mar 13, 2018 06:12 PM
John Meussner

Indeed Dagny, I've worked with some great people from the rain, too!

Mar 14, 2018 10:57 AM
Deepak Chauhan Asso-Broker, MLO
Versailles Property - Irvine, CA
Your Solution-Oriented Realtor

Dagny ... someone is following you because of your comments above 

Mar 14, 2018 10:13 AM
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

I think it is awesome for us in AR to have a ready to go referral service through the members here. I know when I need an agent in another land, I rely on AR to point me in the right direction!

Mar 15, 2018 10:16 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Great post John.

I consider a referral as someone working in my name. I do not like people to mess up my name, I can do enough of that without help.

So, I check folks out first. AR is my starting point.

Mar 15, 2018 10:53 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hi John, Yes it needs to be the right match with the professional committed to make it work.

Mar 20, 2018 07:43 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hi John, Now that you are licensed in TN I hope we can do some business. Have a good evening in CA.

Apr 02, 2018 07:47 PM