How To Handle Agent to Agent Referrals Properly

Reblogger Steve Baklaich
Real Estate Agent with RE/MAX Results St Cloud Mn real estate

This is a great post from my friend Anna in Arizona, but it applies to all Realtors, and our Buyers and Sellers. Enjoy!

Original content by Anna Banana Kruchten - Phoenix Homes Sales AZ Broker BR030809000

How To Handle Agent to Agent Referrals Properly

 

 

Referrals are part of our business model and have been for many, many years.  We have How To Handle Agent to Agent Referrals Properly outgoing and incoming referrals from ActiveRain, CRS and other groups. It is always an honor to receive referrals from agents we know, like and trust. The referring agent knows that we will take the very best care of the clients they're referring. And we also know that the agents we refer our clients too will receive exceptional service as well.

 

  

What is the proper way to handle a referral?  When I become aware that a client of ours is moving to another location I immediately locate an agent in whatever area they are moving to. I first call the agent and talk to them about my clients and their wants and needs to make sure it's a good fit (if I don't know the agent already). I then follow up with a referral agreement signed by both parties. The agent and I keep in touch and help each other out, if needed, until the transaction closes.

 

 

 How To Handle Agent to Agent Referrals ProperlyA few months ago clients of mine that had moved to Texas 4 years ago, called to let me know they're moving to the Fort Collins area instead of back to Phoenix. They were going to rent for the 1st year and then intend to buy a home.  I immediately contacted Dick Greenberg as I knew he and Mary would take excellent care of my clients. Even thou they won't be buying for another six months or so at this point, setting up the referral in advance  gives the clients a good sense of 'we've got somebody' we can rely on from now until we buy.It might be just a matter of setting up MLS searches, occasional emails and, of course, putting them on the newsletter list.  It's simply a good business practice!

 

 

How NOT to handle a referral?  This past year an elderly man from CA called me letting me know he got 'stuck' with a property in Phoenix and he had no idea of what to do. We get a number of calls like this as people find us online, so his call didn't seem unusual to me. His situation was quite complicated and it took some time working with an attorney and others to even begin considering offers. All went well and we closed the transaction  last November. Last week an agent from CA called me and said "I don't expect anything but I did give your name to this man a year ago".  Well that's interesting was my first thought. My second thought was -- and you waited over a year to call me? It's simply NOT a good business practice!

 

 

What should have happened?  This agent should have contacted me right away regarding the possible referral.  At the very least a simple phone call from the agent would have sufficed! I would have known it was a referral and honored it, of course. AND this is a BIG AND - I would have made sure a referral agreement was in place, that it was part of the transaction and that is was handled properly through escrow.  Agent to agent referrals are part of a contract and proper contractual procedures must be in place for each and every referral. It's simply a good business practice!

 

 

 How To Handle Agent to Agent Referrals Properly

 

  

Anna "Banana" Kruchten

Arizona's Top Banana of Real Estate!

Owner/Broker, CRS
Phoenix Property Shoppe
602-380-4886
 

 

Search for Phoenix Area Homes Here 

 

Connect with me also on these sites

 

    Anna Banana Kruchten Google+theannabanana on facebookAnna Kruchten LinkedinAnna Banana Kruchten on GoogleAnna Banana Kruchten of Active Rain

 

 

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Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Great post Anna. I have encountered all types of actions over the years, including an Agent making a referral after I have worked with the Buyer for several weeks.

Feb 24, 2016 02:31 AM #1
Rainmaker
420,285
Christopher Pagli
William Raveis Legends Realty Group - Tarrytown, NY
"I Stay Open Until You Close"

I'm amazed at how some agents handle referrals.  Here is a blog post I recently wrote about an experience I had  -http://portlandmainerealestatemarket.com/2015/10/07/are-you-sure-you-want-that-referral/

Feb 24, 2016 10:01 PM #2
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Wow Christpher, that was a good blog, and right on topic. I get the question, is the receiving Agent resentful about paying the referring agent. Maybe more responsive to other clients, etc. 

Feb 25, 2016 02:56 AM #3
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Rainmaker
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Steve Baklaich

Treating Buyers & Sellers to Full Service Always.
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