In the real estate business, a referral is defined as a “warm lead” or a “warm contact.” Someone has

recommended your services to a potential client. Maybe it’s a referral from another real estate agent.

Maybe it’s the guy sitting next to your past client that says, “Hey, happen to know a good real estate agent?”

Typically warm leads are easier to convert to clients than cold leads (those without that personal

connection), but it’s not an automatic slam-dunk. You’ve still got to manage and nurture warm leads lest

they become just another entry in your database. Here are five tips to help you turn a referral into a client.

Arrangeanintroduction

Ideally, arrange for all parties (you, the referrer, and the warm contact) to meet face to face. If an in-person

meeting isn’t logistically feasible, arrange a conference call. Having the referrer and the contact together

when you are introduced can go a long way toward quickly establishing a good rapport, which sets the

foundation for everything else to come.

Doyourhomework

Even if you’ve received a formal introduction from a referrer and have no other competition to win

the business, you should research the needs of your potential client. As soon as possible, set up an

appointment with them to discuss exactly what it is they are looking for.

Understanding “wants” versus “needs” is a critical first step. Ask any homebuyer, “What are you looking

for in a home?” and you will get a response like, “I need 3 bedrooms, 2 baths, and around 2,000 square

feet in such and such neighborhood for about X dollars.”

Dig deeper. You might find out that your client cannot climb stairs, so a single-story home is a need.

Maybe they like a particular neighborhood, but are open to considering others. That neighborhood

request just became a want instead of a need.

Discover and categorize wants and needs early in the process. Your potential client will appreciate your

detailed service, and you’ll avoid the likely heartache that comes with unclear requirements.

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5TIPSto Convert Referrals to Clients

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Don’tassumeanything

When you get a referral, the referrer will probably tell you everything they know about the contact.

The referrer may have worked very closely with the person, perhaps even helping them buy or sell real

estate. But you cannot assume that what holds true in that relationship will apply to yours. A person’s

wants, needs and desires change. Their financial situation changes. Even their understanding of a real

estate transaction may change, or be forgotten. As with any new lead, don’t assume anything and do

your homework.

Don’toverwhelmyourcontact

Human nature often compels us to over deliver. We want our clients to be fully informed so they

can make good decisions. But giving warm contacts a lot of information early in the process can be

overwhelming, leading them to second guess everything, and generally making the process far more

stressful than is necessary.

Letyourpersonalityshine

It’s quite likely that you received a warm contact through someone that knows you, or at least knows

of you. They referred you for two primary reasons: your professional ability and your likability. You can

prove your professional mettle in a number of ways — defining wants and needs, educating your client

on the local market, and demonstrating your expertise in the buying/selling process. Showing your

personality is sometimes more difficult than proving professionalism. It’s important to do though, as

people want to work with someone they like. As a real estate pro, you’re used to reading people and

understanding what makes them tick. Use that skill to “break the ice” early in the process. While you

can’t force someone to like you, making an effort to be personable can pay huge dividends.

Keepyourreferreruptodate

Building a referral network can add stability to your real estate practice. The best way to ensure that

a referrer uses you again is twofold: take good care of the warm lead, and keep the referrer updated

on how things are going.

You don’t need to give a referrer the details of everything that transpires. But updating them at key points

in the transaction is important. Let the referrer know when you’ve met the contact, that you’re looking

at homes, have signed a purchase contract, and when the transaction has closed. Keep the lines of

communication open and be adaptable. And if a referral fee is involved, stay on top of that and ensure

your referrer is paid on time.

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Summary

Not all leads are created equal. Ask any sales professional if they prefer warm or cold leads and invariably

they will tell you warm leads, no contest. But just because a lead is warm does not mean it is a done deal.

Many referrals have been lost because the agent who received the warm lead assumed the transaction

was as good as closed. That won’t always be the case. Treat every lead — warm, cold or hot — as if you

need to bend over backwards to make it work.

For more info, go to www.zillow.com/feedback/AdvertiserSignup.htmor call 1-855-411-3631.