7 Savvy Ways to Generate More Real Estate Referrals

Any successful real estate agent will tell you that the best way to build a growing business is to do so with a strong referral game. Real estate referrals typically come from two places.

First, referrals can come from your sphere of influence—meaning your past and present clients, your family and friends, and the people you know. Your contacts pass business your way because they know you’re in real estate and that you’re the best person to help buy or sell a home.

The second way agents get referrals is when one real estate agent passes business to another, usually because the business is in a state they’re not licensed in, or in an area (like commercial real estate) they may be unfamiliar with. If you’re looking for information on this kind of referral, check out our article Real Estate Referral Fees: How They Work & Best Practices.

In this article, we’re going to discuss that first kind of referral, digging into actionable ways you can take your business to the next level using the people you know and their connections to fill up your lead funnel. You’ll hear from top producers from across the country and get their best advice on how to implement these strategies.

Let’s get started!

7 Ways to Increase Your Real Estate Referrals

1. Invite Your Past & Present Clients to Must-share Events

Akos Straub, Realtor, Berkshire Hathaway HomeServices

“My best referral sources are private and intimate events for my past and current clients, usually for no more than 20 couples or families.
For instance, before COVID-19 hit, I offered a private screening of the new Aladdin movie at a downtown AMC theater. I reserved all the seats for the Saturday morning show, and I offered popcorn, drinks, and a gift bag with Aladdin-themed items. When an attendee was asked how their weekend was, they were for sure going to mention my name and the event.”

How to Get Started With This Strategy

Strategy cost: $500 to $1,000
Time commitment: 1 day plus follow-up

With COVID-19 showing no signs of slowing down, hosting in-person events is harder right now, but the opportunity is still there. Try hosting outdoor movie nights in a local park, sponsor a nature walk on a local trail, or a food truck for an hour at a beach. And, don’t forget to follow up with anyone who attends to thank them and have a referral conversation with them.

2. Share Your Favorite Spots in Town

Brad Cooke, Realtor, Corcoran Group

“I am constantly keeping my name in front of clients with advertisements, postcards, e-blasts, and so forth regarding new listings, but I also include content like ‘My Favorite Places.’ Whether it be restaurants, bars, dry cleaners, or car washes, people share when they read something they agree with, so just give them a reason to share your message.”

How to Get Started With This Strategy

Strategy cost: Between $3,500 and $6,500 a year, depending on your market
Time commitment: About four hours a week

A great way to tackle this strategy is to use a community website from Parkbench. With a Parkbench website, you can become the hub of what’s happening in your market, hosting interviews with local business owners, and making recommendations for the best spots in town.

Check out the Parkbench website to see if your market is available (they only allow one real estate agent per area), reserve your spot, and start talking up your local community’s hot spots.

Visit Parkbench

3. Stay Relevant by Sharing Important Market Information

Alyssa Martin, Realtor, Nest Seekers International

“You’ve got to stay up to date on the latest real estate trends, and you’ve got to share those trends. I share valuable information with past and future clients, both to educate them and to stay on their minds. Most people don’t use the same agent twice; I want my clients, their friends, and all New Yorkers to know that I’m consistent, caring, and tenacious.”

How to Get Started With This Strategy

Strategy cost: FREE
Time commitment: One hour a week

Head over to your customer relationship management (CRM) tool or your email marketing platform and create a template you can use to fill in the most important stats to your clients. You may need to create multiple templates in order to be relevant to multiple client types. When in doubt, create another template and make your communication more personalized. Then, pull stats from your market every other week and fill in your email templates.

4. Crossover Your Prospecting & Referral Game

Marie Bromberg, Realtor, Compass

“I regularly prospect Bushwick—the neighborhood where I live—and it just so happens that a parent, whose daughter went to the same school as my daughter, got my postcard in the mail, and we matched. This person was a part of my school circle, but my extra touch with the postcard helped to make the connection.”

How to Get Started With This Strategy

Strategy cost: $100 to $500 per postcard mailing, depending on volume
Time commitment: Three hours a month

If you want to crossover your prospecting and referral game, you’ve got to start by making sure your postcard game is in shape. Check out our article all about real estate postcards, and then get started with postcards for any of your campaigns using Prospects PLUS!.

Visit Prospects PLUS!

5. Ask for a Referral at the Happiest Moments

George Smith, Managing Broker, Mandich Real Estate Advisors

“The best way to get referrals is by asking for them at your client’s happiest moment.

“For example, I was once able to negotiate three months of free rent for a client. I congratulated them on their great deal and asked them right then and there if there was anyone else they knew that I could also help. Ask and you shall receive!”

How to Get Started With This Strategy

Strategy cost: FREE
Time commitment: 30 seconds

The best way to flawlessly execute this strategy is to practice. Get your referral request down to three or four sentences, and practice, practice, practice. Write it down, deliver it to your friends and family, and be ready to offer it at just the right time.

6. Be Authentic in Your Post-closing Communication

Shanna Sharp, Head of Training, Bohemia Realty Group

“I keep detailed notes on each client and send content that appeals to them specifically.

“For instance, I noticed a group of my past clients were major foodies and home cooks. Not being a great home cook myself, I wrote a blog-like email of my failed attempt at a pumpkin curry one fall. At the end, I jokingly asked for referrals since I should probably stick to real estate as my cooking career was clearly not taking off. I got multiple referrals that helped me have a strong fall and winter.”

How to Get Started With This Strategy

Strategy cost: FREE
Time commitment: One hour a week

Like Ms. Sharp, you’ve got to make sure you’re taking good notes about each of your clients. We suggest using your CRM for that so you can keep all your thoughts organized in one place. Start by sending out a personalized email using this information on the anniversary of your clients’ purchase or sale. This way, you’re sending out one or two emails every week and keeping conversations going throughout the year.

7. Schedule Your Outreach to Former Clients

Sheila Reuther, Realtor, Neal Clayton Realtors

“I’ve sold residential real estate in the Nashville area for 30 years. The key to repeated referral business is continued and consistent contact. Obviously, you need to do a good job for your clients, but those clients passing your name on to others is what matters here.

“Keep your name out there whether it’s mailers, phone calls, or social media. Remember the little things about people. A small detail can go a long way.”

How to Get Started With This Strategy

Strategy cost: FREE
Time commitment: Two to three hours upfront, 30 minutes a week after that

Make sure you’ve got a good CRM in place to help manage your communication with your clients. If you’re tight on funds, you might want to check out our list of the best free real estate CRMS. These platforms can help you organize your communication and make developing a plan for each of your clients easy.

Over to You

Have a great way to get referrals we didn’t cover here? Let us know in the comments. Also, if you can’t get enough of real estate lead generation, make sure you check out 37 Underrated Real Estate Lead Generation Ideas for 2020.