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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Bonus
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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.