Updated: June 3, 2024
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Have you ever heard anyone talk about: My inside guy? An esteemed accomplice? One of my contacts? Just somebody I know? An old friend? One of my connections? A friend of a friend’s? These are all examples of the power of networking. While tv and movies often make networking look a lot more action-packed than it actually is in real life, it is still quite the blockbuster for realtors. The truth is that leverage wins referrals in real estate.

 Eat your heart out, Martin Scorcese! 

A referral from another realtor is one of the most valuable things you can receive when clients are buying or selling a home. You’re a trusted source of industry knowledge and experience as a referral partner. Learn what a referral is and how to expand your network to tap into a wealth of people and expertise that will help you succeed by connecting the right people with the right resources.

What Is a Real Estate Referral? 

A real estate referral is when one agent or broker refers a client to another agent or a real estate broker. The original agent will use the referred agent to better leverage the deal and meet the client’s needs. The referring agent may do this because they are not licensed to work in the area where the client wants to buy or sell a property.

The success of a real estate referral depends on both the quality of the referral and the relationship between the agents involved. A referral that results in a sale can be very lucrative. Make sure to only refer clients they are confident will be well taken care of by the receiving agent. It is also necessary to develop good relationships with other agents in your market to be optimistic that your referrals will be returned when an opportunity arises.

How Does Networking Impact Referrals?

A real estate agent’s ability to connect with other agents’ potential buyers and sellers is based mainly on the quality of their network. Even though other realtors may know the local market, they will better trust the referral’s ability. While they might have adequate resources, they will refer for better leverage during the transaction with resources and tools such as contracts, inspectors, lawyers, and mortgage brokers. 

When it comes to getting referrals in the real estate industry, networking is key. Building a strong referral network is about cultivating relationships with other professionals in your field and other sectors. You will use your connections and contacts to bring in potential clients and leverage your expertise to help them find the perfect property and to close deals smoothly. 

Is Leveraging Your Network Part of Realtor Success?

The real estate referral process is when one agent passes on a lead to another agent in their network. The second agent hopes to successfully convert the lead into a client because more “leverage” is required. Leverage is a key term for referrals and irreplaceable when it comes to realtor success. The expectation is that referrals are experts in networking because they are skilled at connecting the right people with the right resources.

Lady Leverage 

You already know that leverage is the ability to use your carefully curated network to get what you want — to optimize your relationships to achieve your goals. For realtors, networking is the simple answer for leads. Still, networking is also the foundation for expert leveraging of resources, tools, and relationships. Leverage is a powerful tool that can help you achieve your goals. 

Leverage is so powerful that I made big goals for networking when I started in real estate. When I actually set out to reach them, I wasn’t sure if I could. So, I gave myself an alter-ego: Lady Leverage. Even when I didn’t feel like meeting new people, going to the ribbon cutting for a new business, or attending a town hall event, I did anyway. Well, Lady Leverage did. A super realtor with networking and leveraging powers would never miss the opportunity to meet new people. Some 20 years later, I still haven’t hung up my cape, but my focus is different. 

Mighty Mentors 

I also learned about the power of the mentor/ mentee relationship in real estate. Mentors are a huge part of your success in real estate because you truly need someone who has been there and done that to help show you the ropes. For example, a mentor can help you identify potential leads and advise how to approach them. Mentors are also essential in a real estate referral success because they can offer guidance, advice, and support throughout the process.

Having a mentor can increase your chances of success. You’ll have someone to bounce ideas off of. Mentors can also offer helpful feedback while you’re still tweaking the superpowers of your own alter-ego. Even experienced agents can benefit from finding a mentor. New insight can be just the thing you need to help take your business to the next level.

How To Network for Referrals 

Becoming a sought-after referral won’t happen just like that —  it’s true. However, there are three actionable steps that you can take right now to begin building a strong network that will start your connections and resources.

Step One: Establish Yourself as an Expert in the Field 

Establishing yourself as an expert in the industry will help you get realtor referrals. You’ll have to demonstrate your knowledge and understanding of the real estate landscape. , you prove to potential clients and other realtors that you are the perfect person to help them purchase or sell a home. Additionally, by becoming a recognized authority in your field, you’ll create a more positive reputation and increase the chances that other professionals will recommend you to their clients.

Step Two: Build Relationships With Other Realtors

Working in the real estate industry can be a gratifying experience. However, finding new real estate clients can be challenging if you don’t have any friends or connections in the industry. To get realtor referrals, build relationships with other professionals in the real estate industry. You can do this by attending networking events, joining professional organizations, and participating in in-person educational programs to stay current on your professional hours.

Step Three: Build Relationships With Industry Professionals 

Another way to get started is by building relationships with other professionals outside of the industry. This can include other sales and service agents in relatable fields, mortgage lenders, and other pivotal home buying or selling players. By establishing these relationships, you’ll be more likely to receive referrals from those who know you well and can trust your judgment. You may also find new ideas or insights that could help guide you in helping clients.

Everyone Started Somewhere 

You won’t become an expert overnight, but you can do what the experts do as soon as now. Making a plan to implement these steps today will help both seasoned and newbie real estate professionals win more clients and receive more referrals.

As a long-time realtor, I’ll cry networking and leverage all day for real estate success. In fact, I still refer to my ever-expanding network as the work of my superhero alter-ego, Lady Leverage. But the truth is, it doesn’t actually take superhuman realtor skills to develop a massive network of agents and professionals to leverage success in real estate. It does take time, dedication, and effort. To get those coveted referrals and build trust, you have to grow your network and learn how to leverage it. 

Remember what Arthur Ashe said, “Start where you are. Use what you have. Do what you can.

About the Author Meleah Jones

Hi, my name is Meleah Jones and I'm on a mission to help motivated realtors just like you! With 20 years in the real estate business, I've been blessed to build a powerful network of people and resources to help build your confidence and legacy in the real estate industry.

I won't stop until you're no longer just surviving but thriving in the real estate market.

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