Saying Thanks for Referrals | The Residential Specialist

Learn the best ways to show appreciation for client referrals

By Annika Tourlas

For agents, referrals are the lifeblood of sustained success and can transform potential leads into valuable relationships and transactions. However, it’s not just about receiving referrals; showing appreciation for them is equally crucial.

The power of referrals

Referrals come from a place of trust and are a testament to your expertise and professionalism. When another agent or a satisfied client recommends your services, they’re vouching for your ability to deliver exceptional results.

“We’re in the relationship business,” says Liz Smith, CRS, REALTOR^® at RE/MAX Results in St. Louis, Missouri. “When I do referrals, I want the agent I worked with to feel confident in my abilities and feel good about their client being taken care of.”

A referral has the power to improve the transaction for both the agent and the client, making it a desired practice that takes time to build. After establishing a base network and a reputable name for yourself, your business can soon see the benefits of referrals, including:

Enhanced trust and credibility: When someone refers a client to you, they transfer their trust in you to the referred party, making the client more likely to believe in you.
Network expansion: The real estate industry thrives on connections, and each new client can lead to more referrals, creating a ripple effect. By continually nurturing these relationships, you can build a diverse client base.
Cost-effective marketing: Traditional marketing methods can be expensive and time-consuming. Referrals, on the other hand, are a cost-effective way to attract new business.
Market expansion: Agent-to-agent referrals help you branch your business into new markets, from luxury real estate to rentals.

“Agent-to-agent referrals are the best way to add to your database,” says Smith. “As you develop those relationships, you can reach out to people for advice on business challenges, marketing ideas and more. So, the relationship becomes more than just about the referral.”

Expressing gratitude

When someone takes the time to refer a client to you, they are not only helping your business grow but also risking their own reputation. Therefore, it’s essential to convey your gratitude in a meaningful way.

Expressing thanks goes beyond mere courtesy; it helps cultivate a culture of reciprocity within your network. Whether the referral resulted in a transaction or not, showing appreciation to the agent is a sign of someone who goes above and beyond.

“You acknowledge and thank the action of somebody giving you a referral. You don’t thank the outcome,” says Kate Johnston, CRS, broker-owner of Key Realty in Redmond, Washington. “They thought of you as the person to come to for a referral. So, you need to honor them and thank them right away.”

How to show appreciation for referrals

Expressing gratitude and cultivating your agent relationships doesn’t have to be complicated or expensive. Personalizing your thank-you’s with these tips adds a special touch that clients and agents will remember for years to come:

1. Handwritten personalized thank-you notes

A handwritten thank-you note is a tangible expression of your gratitude, carrying with it the sincerity of your appreciation. Whether you’re checking in on an outbound referral or thanking a colleague for their referral, don’t underestimate the power of a handwritten note.

2. Referral gifts

Pairing your note with a thoughtful gift shows how much you truly value the relationship. It doesn’t have to be expensive; a small token of appreciation that speaks to one’s interests or needs does just as much as an extravagant gift.

“I’m a big believer in personalization and taking a few minutes to think about a gift that will be useful and something that somebody will appreciate,” says Johnston. “I put some thought and creativity into it so that there was a good association with my expression of appreciation and that I’m going to serve the client well.”

3. Public recognition

If the referrer is comfortable with it, publicly acknowledging their support in a newsletter or social media post can be a great way to show appreciation. Public recognition not only makes the referrer feel valued but also highlights your strong network to potential clients.

4. Regular updates

Provide regular updates on the client’s progress to keep previous agents in the loop to show you’re actively working on their referral.

However, updates don’t have to end there; consistently updating your network proves you value their support. Smith develops a custom holiday card with her year in review, detailing information like how many houses were sold and a fun look into her personal life.

“We all work for a brand, and who you are is your own personal brand,” says Johnston. “You want to represent excellence, quality and professionalism. And being a professional person means you handle referrals with care.”

Ideas for Referral Gifts

When expressing gratitude through referral gifts, consider thoughtful yet practical options to ensure your appreciation resonates well with the recipient.

“I’ll typically write a thank-you note when I first make contact with the agent and then send another one after the transaction closes,” says Liz Smith, CRS, REALTOR^® at RE/MAX Results in St. Louis, Missouri. “I will also send them a local baked good from St. Louis.”

Here are some ideas for referral gifts that convey your gratitude effectively: