How do you screen referrals for real estate?

I take all referrals to heart, I never say no. I can quickly inform the referral party of a possibility of success. I appreciate ALL referrals.

The extra mile principle always works. And I sincerely try to prepare and work every lead out 100%. Also, when starting to work with a prospective buyer, I try to remember that I am at service. That the actual sale may appear after some time, not immediately. I am sure that every home has its own buyer and when they meet each other magic happens. Then my work comes down to the law of average numbers, and also there is always mutual respect and I get satisfaction from the process.

Let's be honest, no realtor is going to thumb their nose at any lead. Some agents won't sell below a certain price but they won't turn a Lead away. They'll give it to another so they get the 25% referral fee. Before I proceed I run background checks and I look for bankruptcies & other discrepencies. I worked for a listing agent that had the home staged, marketed and ready to post on the MLS only to find out the owner had concealed a bankruptcy. The deal fell through & the agent lost his investment. So, now I conduct background checks to ascertain veracity & validity. I have spent too many hours with folks who weren't what they purported. I appreciate all referrals & take all folks at face value until I learn otherwise.

I've found that asking the referral source how well they know the buyer is important? If it's a cold lead then I know I have to do a lot of work vetting them and it's low probability lead. I've had people in my network ask me for info to vet leads as well for 'buyers' coming from my area on their own. Helping peers is a great way to strengthen your network.

My business is almost exclusively referrals. What makes it so easy for me, they are nearly all, past clients coming back or referring me to friends and family. I don't farm areas or pay for advertising. My marketing plan is easy; I do my job well, people send me more business. Once I receive a referral, I have them qualified or require them to show me proof of funds immediately up front. There is nothing worse than finding the right property with no way to buy it. When selling a referral, I find that all properties have specific selling points others are looking for. Choosing the right characteristic to focus on will net more $$$.

I always go for a phone call. Building rapport quickly is key with referrals as you want them to a) feel that the referrer is a great person and b) discover how you can best serve the potential client

The first step in our process is a Hopes & Dreams call. This is a 15-20 minute call that not only lets us get to know the client, but let’s the client get to know us. It’s all about building a relationship. We work strictly by referral. However just because a client is referred to us, doesn’t mean we are a good fit for each other. The hopes and dreams call is where we figure that out. In the long run this saves us time, money and frustration.

Your closing ratio will increase dramatically, if you are able to schedule an in person consultation with the referral. I find this to be easier by making a phone call to the referral versus a text or email for the first contact.

I always ask if they have an exclusive agreement with another Realtor up front. I would not check my client's credit, that's outside of my expertise. There are many great local and national lenders I refer to clients if they don't already have one they are working with. As a Realtor I rely on those lending professionals to qualify the referral. Once the referral is qualified, then I will ask them about their needs, wants and timeline.

With so much information readily available on the Internet, this is where you can start to provide real value. If the referral does not have a lender, it empowers you to make a lender referral of your own. Educating the referral on how the current market conditions affect their goals and home ownership ambitions builds trust and highlights their need to use a professional real estate agent for guidance. The process of qualifying the referral should provide you an opportunity to showcase your competence and expertise.

I am curious about what tools are being used in this market to qualify and identify sellers when the listing is being signed. This is especially important with the increase in fraud we are seeing on unencumbered properties.

This is where many agents fall down. They do all the good work and find out the client needs more nurturing and disappear. Follow up is what separates a relationship from a transaction. Being there for the client means sticking it out for the long haul sometimes.

Maintaining the relationship is key. A drip system to update client market knowledge is a great way to stay in touch. I love going to BBQ's, graduations, baby showers, HOA meetings or whatever my clients have going on. I enjoy working with people, not working for people. It's good business to stay involved.

Remember to simplify the referrals search efforts by utilizing an MLS feed, if one is available. New listings come straight to them and you can stay apprised on what they’re clicking on. It also lets them schedule showings fast, before the house has multiple offers or an accepted offer.

Without repeat clients and their referrals, I wouldn't be in business. Making sure I show my appreciation to those putting their trust in me, sending me their friends and family, is a priority that I enjoy.

AI can’t get sued. You can. While it is important to provide updates and give thanks to your referral sources, be careful when it comes to gifts, incentives, discounts, and especially commissions. Providing any of these incorrectly to the public or a non licensed individual could land you in big trouble.

Complacency leads to mistakes and unnecessary obstacles. Being aware and available for change is paramount in the changing markets we have today. Helping clients understand the situation and opportunities is the goal. Refining that communication continually with new technology will keep the door open to sharing more information about markets, legal, and financial circumstances we find ourselves in.

If you are receiving referrals, you are doing something right. Keep building your business and repeat the efforts, marketing, and networking that are causing your colleagues to refer their circle to you.

Don't go at this alone. Having partners that will also nurture the referral goes a long way. As a Mortgage Broker, I not only pre-qualify and pre-approve referrals but I also reinforce the relationship between the Real Estate Agent and the client. We call it C.A.R.E, Creating A Referable Experience for our agent partners.

Are you new to real estate? Get out there and make a difference in your community. Most referrals, after family and friends, come from business associations, volunteer work, civic involvement, hobbies, church, mentoring, coaching, social groups, etc. When you have things in common or go out of your way for a person or cause, people remember your actions and are glad to send people they know to someone they trust.