This May marks Inman’s sixth annual Agent Appreciation Month. Look for profiles of top producers, opinions on the current state of the industry and tangible takeaways you can implement in your career today. Plus, the prestigious Future Leaders of Real Estate return this month, too.
The market’s noisy. Clients are picky. Everyone’s looking for more than just a transaction.
That means you need to be more than an agent. You need to be a connector, a guide and a problem-solver, and let everyone know that’s who you are.
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One underrated move that separates the pros from the also-rans in real estate? The ability to add value and build long-term relationships with a solid referral directory.
According to a recent study from Opendoor, almost all Gen Z and millennial first-time homebuyers have buyer’s remorse, in part because of the unexpected expenses that came along with their home purchases. An unforeseen systems breakdown or replacement can be a budget buster and leave a bad taste in the mouth of your clients.
Knowing exactly who to call for a fair shake on the repair? That makes you a priceless asset in their homeownership journey.
What it is (and what it isn’t)
A referral directory is not just a random stack of business cards in your drawer or an endless scroll on your cellphone. It’s a curated list of trusted vendors.
These can include:
- Contractors/home repair specialists
- Stagers
- Electricians
- Plumbers
- Home inspectors
- Lenders
- Interior designers
- Landscapers
- Housekeepers
- HVAC tech
- Junk removal company
- Mover
- Professional organizer
- Pest control pro
- Insurance agent or broker
- Painter
- Smart home installer/consultant
And the list goes on. These shouldn’t be random people you find via Google. They should be people you’d stake your name and professional reputation on.
Sharing this type of information makes life easier for your clients when things go wrong and positions you as the ultimate resource for all of their home-related needs long after closing. It gives you a reason to reach out and check in and a way to talk about home value, updates and upgrades in the years ahead.
5 reasons it pays off
1. It builds trust instantly
Everybody loves knowing someone who always “knows a guy” to fix any problem. When you provide clients with a support system and a go-to resource for every issue, you build trust that lasts for years to come.
2. It deepens your local network
As a real estate agent, you’re a small business owner. When you send business to another small business owner — a contractor, lender or interior designer — they remember. That relationship can result in referrals sent back to you, partnerships and social media shares.
3. It makes you look buttoned up
A polished list or an instantly shareable page says to clients that you’ve done your homework and put your years of experience and networking to work on their behalf. That results in the kind of credibility that keeps you top of mind.
4. It keeps you top of mind
Speaking of which, helping a client fix a plumbing issue six months after closing or recommending a stellar landscaper five years after closing means clients keep coming back to you — and recommend you to the people they care about most.
5. It can create passive income
Depending on where you are, some referral partnerships are monetizable. Know the rules — but don’t ignore the opportunity. And don’t forget to let folks know about your professional network in other markets so that you can provide a reference for far-flung family and friends.
How to build a referral directory (without making it a project)
When you’re building your referral directory, start small, choosing five rock-solid vendors you’d trust with your own home projects. From there, you can grow your directory by asking past clients and current colleagues for names of those they trust and would love to work with again.
Gather your info in a basic format like a Google Doc, spreadsheet or webpage. Or if you want an easily shareable plug-and-play format, consider a platform like Thumbtack’s Agent Pro List (Full disclosure: I helped design it).
If you build it, will they come?
Once you’ve put your directory together, don’t just sit back and wait for people to ask you for references. You can:
- Add a link to your onboarding/new client emails
- Mention it in listing appointments or buyer consultations
- Post shoutouts on your social media channels to keep it visible
Make your directory part of your brand, not a hidden file you forget about and occasionally have to unearth. And don’t forget to keep it updated regularly with current contact information.
The agents who win add value everywhere
Creating a directory like this isn’t just busy work for slow seasons or a nice-to-have option. It’s about showing up differently in a way that adds value to the service you provide.
You know my favorite saying by Maya Angelou: “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Make your sphere of influence and past clients’ lives easier, and they’ll remember you. They’ll talk about you. They’ll feel cared for and cared about.
Don’t overthink this. Start your list, polish it, and get it in front of your people.
Troy Palmquist is the founder and principal at HomeCode Advisors. Connect with him on LinkedIn.
