What is a "referral" in real estate?

Often I get asked the question "why do all real estate professional's business cards and email taglines mention the words "I love referrals"?
What does a referral mean and how does it benefit me, my friends, family, and colleagues, especially if it's in a different state? 
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Great QUESTION!  By definition the word referral is an act of referring someone or something for consultation, review, or further action.  In our industry it is more than the classic definition of passing along a business card.  Rather it's a furthering of a business relationship, which has already been established between me, your Realtor with Heart and those you care about.  The referral is a relationship that gets extended to those in your sphere of influence.   Think of the real estate referral as a relationship more than an act.  

You're not in the State of Colorado?  It doesn't matter where in the US my services are needed! Although real estate sales licenses are state specific, license law allows for me to help anyone who's looking to buy or sell real estate anywhere in the US through the vehicle of a referral.  I can only accept referral compensation from other licensed real estate professionals.
 
20% of my business accounts for referrals.  While 80% of my book of business is a combination of direct sales of homes, vacant land, condominiums,  townhomes, farms and ranches, for both Sellers and Buyers, done here in the State of Colorado,  believe it or not (that someone would actually need to leave this beautiful place) natural attrition to and away from the state occurs.  And when you or someone you know moves into or out of Colorado and I'm here to help.  This also applies to all the states - I can receive a referral from any state licensed real estate agent.  

Anyone who's looking to buy or sell a property are in a referral relationship with someone!  Let's face it.  Everyone and their brother (or sister in my case) know a real estate agent.  There's no free agents of people walking around out there.  It doesn't matter how many homes you have or haven't bought or sold, how old or young you are, you have a referral relationship with a real estate agent.  

In all cases, you and your sphere of influence can benefit from my services no matter where in the US they want to buy or sell.

Once you have established a relationship with me, your real estate Broker, let me continue doing good for you or your people.  Let's try an example.  You are moving away from your home and into another state.  Since I've got your back on all your real estate needs and I know your priorities and how you like to make the purchase, your tastes, the size and nature of the property you're needing, and a special understanding of you, I can help usher you into the arms of a fully capable, licensed broker on the other side, who will show the same care and concern as I.  And for that, I receive the referral fee. 

What is a typical referral fee?  The referral fee costs you nothing and can range anywhere from 20-35% of the total commission earned by the receiving broker.  I am so grateful for your thinking of me that the receiving agent pays me out of their sales commission.  It's simple and no cost to you.   Like I mentioned above, most brokers expect to make about 20% of their business from referrals and we build it into the cost of doing business.

What is in the referral for you as the consumer?  1.  I'm paid by the broker receiving the referral so it's no added cost to you.  2.  It fosters our real estate relationship regardless of where you are in the country.  3.  It's built into allowed by license law, so long as compensation is coming from another licensed real estate broker.  4.  Offers you peace of mind that you and your people are being cared for in all their real estate needs. 

Can the referral be made for residential real estate and commercial?  Yes, whether it's a sale or lease, the referral can be made.

What's in the referral for me?  I get the pleasure of assisting you and your people with what could possibly be the most important investment of a lifetime!  Why take a chance on using any ol' real estate agent that doesn't come by referral from me?  Don't!  Anytime you hear of someone needing to buy, sell, rent real estate anywhere in the US, call me, Kate Paulin, Your Realtor with Heart.  
303-520-0837
[email protected]

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