In commercial real estate brokerage there are plenty of referral business opportunities around you that you can work on. If you are struggling to find new listings, start working on your referral strategies for the location and your client base.
It is a fact that referral leads and opportunities are easier to convert as part of a business growth model for a number of reasons. They are:
- Every client that you work with will know other property owners or business leaders for the locality.
- A sale or lease transaction can lead to a property management appointment (or vice versa). Ask the right questions of the clients and prospects that you are working for.
- People are inclined to create a referral situation for you if you have helped them in a positive way.
- You can give away a benefit as part of being given a valuable property lead or referral.
- Trust is a big part of a successful property transaction.
So to get started in this process of referral business generation you have to look at what you do have by way of relationships in your brokerage now, and also your client base or database of people. Start from the base of people that you currently work with or have served over time. Set up meetings with everyone that you have worked with or know in the location.
Look for Referrals in Current Activities
Here are some ideas:
- Leasing – Look at all the properties you have leased over the last 12 months. Contact the property owners again to see if you can help them further with their property and or have a meeting to catch up on current market trends. A successful leasing transaction should lead to other opportunities over time.
- Sales – From a sales transaction you will have established contacts with the seller and the buyer. Both parties are worth talking to so that you can understand what they intend doing with the property and how things could change for them.
- Property investors – A successful property owner will generally hold a number of properties as part of a portfolio of assets. Diversity is sometimes a focus of portfolio ownership to spread risk to the value and income exposure.
- Solicitors and Accountants – Get to know a few of these people and build up significant levels of trust. Help them with property information and updates. When they know that you are the best agent to help their clients, you will find that leads and listing opportunities will evolve.
- Bankers or financiers – You can feed buyers towards trustworthy and professional bankers and financiers as part of helping resolve the financial side of a property sale. In a reciprocal way I would expect a few leads and referrals over time.
- Property management clients – From one property management client you should have a few levels of interaction over time across sales, acquisitions, disposals, and leasing. Make sure that you have the people and skills to help at the right time.
From these simple levels of client interaction you can see how easy it is to get more property leads and opportunities with referrals. Asking the right people at the right time is really what it is all about.