In the 2008 NAR Profile of Home Buyers and Sellers report, 43% of buyers found their agent through a referral from a friend or family member. It goes on to say that a full 54% of the first time buyers tend to rely more on referrals. On the flip-side, 38% of sellers who used a real estate agent found their agents through a referral from friends or family, and 26% used the agent they worked with previously to buy or sell a home.
Even more interesting to me is that 76% of home sellers contacted only one agent before selecting one to represent their home. Although some sellers do interview more than one agent, referrals played a significant role in the process. On the flip-side, 19% of the buyers contacted a minimum of two agents before choosing an agent, and 26% of the buyers used an agent they had worked with before.
I am sure by now you are asking yourself, “How is this information going to help me grow my business?” Very simple!
In the healthy market of the not-so-distant past, most of us did not actively work our past client list. In fact, we didn’t have to! Our listings sold in record time. Buyers were buying, sellers were selling, and life was good in real estate.
Our new sales strategy in the industry should be (and yes, it’s going to sound eerily familiar because it’s been used for years by the best in the business): hold on tight to your past clients.
An article that appeared in REALTOR® Magazine in March 2005 by Howard Brinton, is still very prevalent today and reminds us, “Don’t be afraid to request referrals before, during, and after working with a satisfied client.”
More specifically, you should be prepared to ask a client who else might benefit from your services in these three phases of the sales process:
During the Listing Interview
During the Sales Process
Just After the Closing
When you do begin working with a referral from one of your past clients, make sure that you call and personally thank them for the recommendation and again when the transaction has closed. Don’t forget, we all like to feel appreciated!
And, of course there are these five things that you should do as well in working with past clients.
1. Choose one or two “unspecial” holidays – Valentine’s Day, for example, and send out greeting cards to your farm list. Everyone sends cards at Christmas; your own will stand out. And remember: Don’t use email all of the time. A personal note goes a long way.
2. Visit homebuyers three to six months after the sale with a small gift to keep yourself fresh in their minds during the first year after their home purchase. Go and see them at least twice a year thereafter.
3. Hold an annual customer appreciation event for everyone that has given you a referral in the last year.
4. Keep good notes. Remembering the names of clients’ children and pets when you call helps create instant rapport.
5. On a monthly basis, send past clients an email just checking in and asking them for a referral. Make sure that you have listings that are in their area so that they can share this with their friends. And, most importantly show listings in the areas where they could possibly want their next home.
In a market like we have today, you can confidently plan on making money from your past clients, their family and their friends! But you have to be ready to follow-through with a strategy and work a smart plan.
Do you have a unique referral strategy of your own other Skirts would appreciate? Please share.
