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Ep. 8: Real Estate Referrals

Ep. 8: Real Estate Referrals

Whether you’re a real estate agent in Puerto Vallarta, or anywhere else in the world, referrals are an essential part of the job. Yet, many agents are unfamiliar with the referral process. On this episode, Jesse and Chelsea break down the real estate referral process, building up a robust referral network, and Chelsea’s insight as the Referral Director for Coldwell Banker La Costa.

You will want to hear this episode if you are interested in…

 

  • The importance of referrals in the real estate industry [1:20]
  • How to broaden your referral network [6:23]
  • Chelsea’s perspective as a Referral Director and the logistics of her job [9:48]
  • The most important part of the referral process [14:04]
  • Chelsea’s tips for a better referral process [15:44]
  • Final thoughts [18:43]

 

Understanding referrals in real estate

 

What happens when a client wants to move outside of a real estate agent’s service area? Let the referral process begin! Referrals are a great way for agents to connect clients with other real estate agents who can help them find the perfect home while still making a commission for the referral. The process is simple: The referring agent gets as much information from the client as possible, including their contact info, the type of property they’re looking for, the price range, and amenities through a referral form. From there, the referring agent needs to research which agent and agencies they’d like to work with. Some real estate offices have their own Referral Director or Coordinator, like Chelsea at Coldwell Banker La Costa. Others will require a more direct relationship with the receiving agent. Once all the pertinent information is shared and the client is accepted, the deal is finalized by each office’s real estate broker. If the brokers find the terms and commission acceptable, the hand-off is complete. 

 

Don’t drop the ball

 

Anyone who has ever bought or sold a property knows that closing can be a stressful time. Obviously, good real estate agents do everything they can to make that process go smoothly for their clients. At the end of the day, however, things happen, and paying the referring agent their fee could be the last thing on everyone else’s mind. That’s why the referral form is such an important document. It’s a legally binding agreement that details exactly what the referring agent should be paid and who is involved. Referring agents can’t have a “set it and forget it” attitude when it comes to referrals. Once the hand-off is complete, agents should regularly follow up because they don’t get paid unless the referral client buys a property. This could take months or even years. That’s why having a Referral Director or Coordinator is a great asset in any real estate office. They stay on top of referrals so agents focus on other important responsibilities.

 

Reaping the benefits of referrals

 

The most obvious benefit to using referrals as a real estate agent is that you never have to turn a client away. You may not be giving them the keys to their new home, but you’re providing a valuable service by connecting them with the people who can. Not to mention a slice of the commission for your efforts. Another great benefit of referrals is the networking opportunities they can provide. Not only do successful referrals lead to repeat business from friends and family of clients, but it’s also a great way to network with other real estate agents around the world. Passing off a good referral means the next time the receiving agent needs to move someone to your area you will likely be their first call. Building up a robust referral network is an excellent strategy for growing your real estate business. Listen to this episode for more on real estate referrals!

 

Resources & People Mentioned

 

  • Visit the website for Coldwell Banker La Costa!

 

Connect With Chelsea and Jesse