Agent referrals have become a significant chunk of my business, and I consciously send as many referrals out to other agents as possible.
Because what you throw out there over time always comes back, like a boomerang.
I have the view that if any property is located more than 5 kilometres from my office, there is a good chance that I am probably not the best agent for the job. I focus and work in around half a dozen suburbs close to my office, and I do it well.
Specialism is the key to success and you cannot be everything to everybody. The danger of moving outside of my area of expertise is that I really don’t have the in-depth market knowledge to confidently talk to the buyers; therefore, I would not be doing the very best I can for my sellers.
My strategy is to specialise and only concentrate on my area (Sydney’s lower north shore). Anything outside of that area I will refer to the best area specialist regardless of real estate brand. Naturally, I try to keep the referral within the brand I represent where possible. The emphasis is always on referring the best agent for the client.
Don’t look at referring business as lost commission, because the agents you refer to will inevitably send you just as much business back the other way. Just as we build relationships with our sellers and buyers, so too we can benefit from building mutually beneficial relationships within the industry.
However, be careful who you recommend; every time you refer a property to another agent, you put your own personal reputation on the line. This is why it is important to build a network of like-minded agents in other suburbs that are able to deliver results and service to your own personal standard. If you refer one of your best clients to a substandard agent, there is a high chance they won’t be one of your best clients anymore. Confidence in your selection is critical.
Over the years, I have built amazing relationships and friendships with other agents across our great country. The relationships have led to an abundance of business and shared learnings. In my opinion, this is one of the most enjoyable aspects of the real estate business.
My advice to you is, be generous, have an attitude of abundance and go out there and create lifelong relationships that will serve you well for years to come.