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Expand your referral network through second-home sales

Every agent knows the importance of referrals for building and expanding your client network. You’ll find all sorts of scripts, tips and tricks online for requesting referrals — these range from advice on choosing the right moment to ask for a referral, to clever psychological tactics you can employ, to ways to overcome your own fears of rejection. In other words, it can be a lot of work!

In part, that’s because real estate isn’t like most products. If someone tries out a new restaurant and loves the food, they’ll tell their friends without prompting (and chances are, the friends will check it out). But even if someone has a great home-buying experience, they might not know anyone who’s looking to buy or sell, so they aren’t likely to say, “You just have to try my agent,” on their next lunch date.

That all holds true for the primary home market. Second homes, and second home clients, are a bit different.

Second homeowners want to share the dream

When someone buys a second home, it’s often the realization of a lifelong dream. It’s an exciting, life-enriching experience, and people are eager to share it with friends and family.

Unlike a primary home, a second home is an “extra” — something that can be bought at any point, if one has the means. And a little FOMO might be all it takes to pique a potential buyer’s interest. It’s similar to how Teslas seem to multiply in some neighborhoods — Bob sees Joe’s new Tesla across the street and wants one too, and then Lara sees Bob’s, and now everyone has a Tesla.

What does this mean for you? It means that one second home client can turn into many, without resorting to all the tips and tricks you might need to secure referrals among primary home buyers. It just takes one client to buy into the dream of second home ownership (literally). They invite their friends to their beautiful new second home, and those friends want to create the experience for themselves. It’s a referral in the making! The cycle repeats, and your second home client network expands.

Getting started in second-home sales

Here are three ways to reach more buyers.

  1. Become a second home expert: Understanding the market is a great first step. How does it differ from the primary market? Who are your likely buyers? Get answers to the questions your clients will ask in our Second Home Ownership course (and earn CE credit!). Course availability varies by state.
  2. Find your audience: Sort your contacts into likely or potential second home buyers. You might have a category for retirees, families who love to travel, or clients who’ve expressed interest in a second home at some point. From there, you can target potential leads. (The Pacaso Playbook for Agents has strategies for organizing your database and scripts for reaching out.)
  3. Partner with Pacaso: The easiest way to get your buyers into second homes is to work with Pacaso. Pacaso’s fully managed co-ownership model makes second homeownership more attainable and removes the hassle of traditional ownership. Your client can purchase ownership in a luxury Pacaso home for a fraction of the price, which gets many buyers off the fence and into that second home they’ve always wanted. Agents earn 3% referral commission plus an equity bonus, and Pacaso does all the legwork. It’s a fast, simple way to earn commissions and delight your second home clients.

Pacaso is the modern way to buy and own a second home. We bring together buyers to purchase and collectively own a second home and provide a fully managed, end-to-end service. We’re making second home ownership possible and enjoyable for more people.