8 Incredible Stats about Real Estate Referrals

Use your real estate CRM to get referralsRecently, Buffini & Company brought some key stats to our attention that we’d like to share with you. All of this information underscores how vital it is to stay in touch with your database and build relationships with those in your real estate sphere of influence (SOI) over time.

1. 82% of all real estate transactions come from repeat and referral business.

– Your database of past clients is your most valuable business asset. What are you doing to nurture it in the long haul?

2. 25% of agents generate more than 50% of their business from repeat clients.

–  If you want to be in this 25%, you need to have a keep in touch strategy and grow the relationships with those in your real estate database.

3. 21% of agents get more than 50% of their business from referrals from past clients.

– We can’t emphasize enough that it’s all about what you’re doing to develop relationships with your past clients long-term. Not only will they bring you repeat business if you keep in touch with them and continue to provide value over time, but they’ll send referrals your way – a lot of them.

4. 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts.

– Are you managing your clients, leads, friends, family members, and personal contacts in a consolidated database? What are you doing to keep them informed of what’s new with the real estate market?

5. 92% of consumers trust recommendations from friends and family above all other forms of advertising.

– Your best advertising vehicle – the one that carries the most weight with prospects – is those you know.

6.  88% of buyers and 84% of sellers would use their agent again or refer them to others.

– If your clients are happy with the service you provide, but you fail to keep in touch, you’re losing an amazing opportunity for repeat business and referrals down the road.

7. The typical agent earns 42% of their business from repeat clients and referrals from past clients.

– Are you one of these agents?  You could be if you have the tools in place to stay in touch and build relationships with your sphere over time.

8. 65% of agents get no business from open houses.

– Business stemming from open houses, your website, and countless other major and minor marketing channels are extraordinarily small compared to the amount of business you can get from referrals and repeat business.

Wondering what the ultimate keep in touch tool is? It’s a real estate CRM. A CRM for Agents is the absolute best way to keep a consolidated database, stay “top of mind” with your contacts, and continue to provide value over time.

A good real estate CRM, like IXACT Contact, will remind you when it’s time to give people a call, while providing automated drip communications between calls as you stay in touch effectively with everyone in your database. And you don’t have to be a marketing whiz to get started – marketing campaigns, a real estate newsletter, and templates are pre-loaded for you.

Are you surprised at these statistics? How do you stay in touch with those you know?