According to the National Association of Realtors 2018 Profile of a Home Buyer and Home Seller report 64% of Sellers and 53% of Buyers find their Real Estate Agent through a referral by a friend, neighbor, relative, or they use the same Agent they had in the past.
In short, Friends, Neighbors, Relatives & Past Clients are the four pillars of any Real Estate Agents business.
So, what about the other 36% of Sellers and 47% of Buyers? How do they find their Real Estate Agent? As one could imagine there is a myriad of other sources, but the simple fact is that Zillow and Realtor.com capture the vast majority of those Buyers and Sellers.
Using simple logic one could deduce that humans prefer a personal connection when selecting a Real Estate Agent. Why? It’s simple, buying or selling real property is a massively important transaction in one’s life. It’s also complex.
So, if a personal connection to find one’s Real Estate Agent is so important why do such a large portion of Buyers (47%) seek an alternate method to one of the four pillars noted above? Well, it’s actually quite simple. Many Buyers are moving to an area where they don’t yet have many personal relationships established. And this is where Real Estate Agents have always dropped the ball.
Real Estate Agents have the unique ability to help their clients transition from one marketplace to the next due to a well established and unwritten rule. It’s the rule of the referral fee. For generations, Real Estate Agents have been referring their clients to one another and for doing so a referral fee is exchanged.
A referral fee can range between 25% – 40%. This can equate to thousands of dollars.
So, if a Real Estate Agent can earn thousands of dollars for simply referring their client to another Real Estate Agent why isn’t it done more often? Here are the top three answers we often hear when we talk with Real Estate Agents about it:
- It’s not easy to find the right Agent.
- Clients want the info right away, so I guess going to Zillow is faster for them.
- I have been burned in the past by another Agent so I am hesitant to refer my clients anymore.
The inspiration to build REALLY came from this question: “why isn’t there a tool which allows Professionals who serve the Real Estate Industry to connect, communicate, and securely exchange referrals with speed and ease?”
REALLY, and it’s “REALLY Easy Referral” process is a game-changer for Real Estate Agents. This is the tool that solves the three problems noted above because it accomplishes the following:
- Members of REALLY simply send their client referral through the system and candidates come to them.
- Using the REALLY Easy Referral process takes minutes, and replaces old processes which took days or even weeks.
- Members of REALLY hold one another accountable with the power of community. A Member of the community who breaks the trust of another is certain to tarnish their reputation.
It may seem like David vs Goliath, but REALLY is on a mission to help Real Estate Professionals take the lead generation power of their industry back from the likes of Zillow. Why? Because our friends, neighbors, and relatives clearly prefer it that way!
Geoff Green is an Entrepreneur with a focus in working by referral. Geoff is also a dedicated Father & Husband to a woman who is way out of his league! Geoff loves to play golf, watch football (American style), and generally be with his family.