New report: Referrals equal big earnings for today’s real estate agents

Referring a real estate agent

Referrals are vital to any agent’s career. In fact, according to new data, 17 percent of all real estate agents earn anywhere from $20,000 to $50,000 thanks to agent-to-agent referrals every year.

What a referral is worth

According to a new report from Referral Exchange, agent-to-agent referrals play a powerful role in a real estate pro’s earning capacity.

Seventeen percent of all real estate agents earned anywhere from $20,000 to $50,000 last year due to other agents’ referrals. Another 20 percent earned $10,000 to $20,000 thanks to these referrals, while 6 percent took in $50,000 to $100,000.

Survey reveals what buyers, sellers really think of real estate agents in the face of tech

A very small fraction — about 2 percent — earned more than $100,000 in agent referrals last year.

The report explained, “As the market shifts in some locations and competition for both buyer and seller clients becomes more fierce, referrals will be an even more important source of business for those agents who remain in the market.”

Hiring a real estate agent when buying a home: Avoid these mistakes

What agents want

As far as what makes another agent referrable, the report shows that responsiveness is the most important factor. Nearly half of all real estate agents said it’s the top quality preferred in a referral partner.

Another 22 percent said reputation is the most important factors, while 9 percent said the personal relationship matters most.

“Relationships, follow-through, and reputation are top of mind for those agents looking to ramp up referrals in their business,” the report concluded. “They’re constantly looking for ways to build and maintain relationships, consistently following up with past clients, and building their reputations by adding value with every transaction.”

Get today’s mortgage rates

Before you get a real estate agent, make sure to get prequalified for your mortgage first. Shop around to see what mortgage rates you qualify for today.