Real Estate: How to Ask for Referrals

Everyone getting into real estate knows the pop culture reference from the movie Glengarry Glen Ross about getting leads.  

The exchange goes like this:

 “The leads are weak,” says the underperforming agent.  “You’re weak!” screams Alec Baldwin’s main character, Blake.  

But seriously, how can you generate better leads from the work you are already doing? Do you want to know the answer to, “How can I get referrals fast?” 

Here are some facets of good leads that you can incorporate into your practice.

Start by goal-setting.  

You should always determine your business goals for the entire year, and leads are no different.  How many leads do you want to generate per month or per season? How to ask for referrals in real estate?  

Knowing your market will help you keep your expectations within reason once the peak of the season has passed. It can also be difficult to figure out what a good number of leads might be for someone at your stage in the field. This is where getting a mentor can make a difference.  

If you don’t know what is right for your stage, tap into the experience of someone who has spent years in the field in your particular market. Keep data on yourself so you can compare what you’ve done in previous years and adjust your expectations to what you learn is realistic.

Quality, not quantity.  

How can I get referrals fast? There is something to be said for the sheer volume of leads that some agents generate, but quantity does not always mean quality.  

In most cases, it is much better to actually have a handful of quality leads as it is to have multiple leads that were never going to go anywhere in the first place. Keep in mind as you look over leads that the best sources are always past and present clients who can speak directly to your work. These clients should be cultivated in your network for the precious resource they are.  Leads from this source generally pan out because they are highly motivated to purchase.  

Secondary sources of referrals may require additional work to convert into a buyer. It is worth it to do the work, but it is important to recognize that they are more work, and you should plan some of your working days to put in the legwork they will require. 

You want the majority of your leads to come from direct client referrals. You can and should tap into your social, business, and professional contacts. But remember, the best leads will always be your own clients, past and present.

Put in the work, and the referrals do follow.  

How to ask for referrals in real estate? We always repeat this fact – the most leads are generated by word of mouth from previous clients.  

Word of mouth comes from being above average and it doesn’t have much to do with a salesman’s personality. Developing this kind of brand recognition is a matter of doing the hard work day in and day out. It means that when you are chatting with a possible referral, you should not cut straight to business and ask for the favor.  

Spend time getting to know the person, seeing how you can also be of service to them, and developing a rapport. Make sure your open houses are fully prepped and you are knee-deep in data about the area in which you are selling. Knowing your stuff creates confidence in your clients.  

Build strong relationships with clients.  

So how do you create that kind of personal touch with a client?  Start by being very clear with clients in the first meeting. What do they expect of you? Do you need to adjust those expectations? Be honest with them about their own budget and the market situation.  

Get to know their goals, not just the kind of property they want to purchase. What do they hope this property will do for them? This will enable you to recognize when a property is not a good fit for the client, even if they are excited about a particular feature. You will be able to develop options for clients they haven’t thought of themselves. You are getting to know them as individuals with dreams.  

Make it easy for clients by helping them think through future needs, such as children leaving for college or future children born to the family, aging family members, retirement concerns, and other life needs.

Real estate referrals and gathering new clients is a time-consuming project. If you can cut down on time spent generating leads, that means more time analyzing data and working directly in the field. 

Good referrals grow your business, so it is vital to get a handle on this piece of the puzzle.  Cultivate those relationships and develop your people skills so that you can provide services to clients that stretch into various phases of their own lives.  

Remember, you’re not just a salesperson, you’re a resource! Join our network of Agents to be in the know of the latest real estate trends and get great leads.