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12 real estate referral strategies that actually generate leads

Real estate referrals are the backbone of a thriving business and the secret behind the success of a top producer. If you ask any high-performing agent where their best leads come from, the answer is usually the same: past clients and their sphere of influence. Building that kind of steady pipeline doesn’t just happen by luck. It’s the result of consistently delivering an exceptional experience that makes clients want to tell others about you.

So, how do you create that kind of referral business for yourself – especially if you’re still building your business? We’ll discuss proven strategies for turning your clients, friends and professional connections into your own personal cheerleaders who will send new business your way. Whether you’re just getting started in the industry or looking to level up your business, these real estate referral tips will help you grow your referral network organically.

Why real estate referrals matter

Referrals are one of the most valuable and cost-effective resources of your real estate business. Clients who come to you through a trusted recommendation are more likely to work with you and more likely to trust you. According to the American Marketing Association, referral leads convert 30% better than other lead sources and require less persuasion because the relationship starts with built-in credibility.

Beyond that, a referral-based business is a sustainable way to grow your business long term. When you focus on building strong client relationships, your network begins to work for you. That means less time chasing cold leads and more time serving the people who already believe in your value. And the best part? One single happy client can turn into multiple new opportunities if you know how to nurture the relationship the right way.

Pro Tip

Client relationships are not the only way to build your referral base. Continuously networking with fellow agents also builds a trusted referral network that generates new business for you – and the other agents. One day, you may need to refer an out-of-area client to another trusted partner.

12 referral strategies that actually work

Even the happiest clients won’t always think to refer you to their friends and family, so it’s your job to make it easy for them to do so. Asking for a referral doesn’t have to feel awkward or pushy. In fact, when done the right way, it can strengthen the relationship and leave clients feeling appreciated and included in your success. The key is to be intentional, confident and clear about how you can help their loved ones achieve their homeownership goals.

Real estate referral strategies aren’t about trying to convince people to move. It’s about being there to offer your expertise when the opportunity presents itself. Here are 12 real estate referral tips to start building your referral base.

1. Ask with confidence

Referrals don’t just come from past clients – anyone you build rapport with can lead to new business. That includes friends, family, current clients, networking contacts, vendor partners, neighbors and even colleagues from a previous or part-time job. Don’t limit the conversation to just those you’ve worked with directly.

Make it a habit to bring up your work and ask for referrals in everyday conversations. The more consistently you ask, the more likely people are to think of you when someone they know needs an agent. Confidence isn’t pushy – it’s professional. There’s no single way to ask, but here are a few examples:

  • In person or by phone: A face-to-face conversation or phone call lets your tone and body language reinforce your message. After a closing or a major win, say something like: “If you hear of anyone thinking about moving, I’d love to be the one to assist them.”
  • In writing: Texts, emails and handwritten notes are effective when timed well. Include a friendly call-to-action like: “Referrals help me grow my business. If someone in your circle is thinking about buying or selling, I’d love the introduction.”
  • Pop-by gifts: Drop off a fun, small gift with a note reminding them that you’re never too busy for their referrals.
  • On postcards: A light, professional postcard to your farm or sphere can keep you top of mind while prompting referrals. Try a line like “Know someone thinking of buying or selling? I’d be honored to help.”
  • In post-transaction surveys: A quick survey after closing helps you gather testimonials and constructive feedback, but it also creates an opportunity to ask for referrals while the experience is fresh.

No matter how you ask, the goal is to make your request for referrals easy, clear and natural. People are more willing to refer business to you than you might think – they may just need a little nudge. If you’re looking for affordable, high-quality real estate postcards, door hangers and print materials designed specifically for agents, we love Wise Pelican. Their full-color, customizable templates make it easy to create polished marketing pieces that work.

2. Turn every closing into a future lead

Closing day is more than a transaction milestone – it’s a relationship milestone. Clients are feeling accomplished, supported and excited. That’s the perfect time to ask for a referral while their experience with you is still fresh. Be sure to keep it simple and sincere. During your final walkthrough, a post-closing call or even in your closing gift note, say something like: “If you know anyone else looking to buy or sell, I’d love to help them too.”

You’re not selling – you’re reinforcing how much you appreciate their business and inviting them to continue the relationship. You can also include a short message in your closing email or thank you card in a gift basket that says: “The best compliment you can give is a referral.” With the right timing and delivery, that moment of gratitude becomes your next lead source.

3. Make your follow-up unforgettable

Most agents drop off after closing, and that’s exactly why staying in touch sets you apart. A great follow-up strategy isn’t just a courtesy; it’s a way to stay top of mind when future referral opportunities come up. Clients will remember how you made them feel long after they forget the details of the deal itself. So when you do follow up, it’s important to make sure that it’s impactful and memorable.

Here are a few ideas to make staying in touch with your past clients unforgettable.

  • Send a handwritten note: Something handwritten goes the extra mile to give a personal touch and let people know you care – and hopefully they’ll share it with their friends and family.
  • Celebrate their home anniversary: Congratulate your past clients on purchasing their new home each year by sending them a card or other kind gesture.
  • Wish them a happy birthday: People love to be recognized on a personal level without any agenda behind it. Send a birthday card or shoot them a text just to show them you care.
  • Offer helpful homeownership tips: There’s a lot that goes into owning a home, sending quarterly homeowner tips helps keep you top of mind while providing value to your past clients.
  • Invite them to events: Events build a sense of community and inclusivity. Show your clients you want to continue the relationship by inviting them to local events or client appreciation parties.
  • Share life updates: If you know your client has experienced a recent life event – don’t be afraid to share the moment with them. Whether it’s a new baby, a new puppy or a new job – they’ll appreciate your support and see you as more than just an agent.

4. Add value before you ask for anything

Agents should be careful not to reach out only when they need something in return. Referrals should come naturally when you stay connected and provide value to others – no strings attached. Think about what would be useful to a past client who’s not looking to buy or sell at the moment, and provide it to them.

Remember those homeownership tips we just talked about? I suggest sending a checklist out for every season with reminders about home maintenance. In our day-to-day lives, we don’t think about the pipes that need to be insulated in the winter or flowers that need to be covered during a mid-spring frost. You may even include a list of local service providers to help them with their projects, like a pest control or landscaping company.

When your communication comes across as helpful, it continues to build trust. When clients are eventually ready to move again or someone asks them if they know a stellar real estate agent, you’ll be the first person they think of recommending.

5. Join a real estate referral network

Referral networks – both in-person and online – are powerful tools for building a consistent pipeline. Local networking groups like BNI (Business Network International) are built for one purpose: exchanging referrals among professionals from different industries. Each group allows just one real estate agent, so if a seat opens up, don’t wait—take it.

Check with your local Chamber of Commerce or colleagues in related fields for active groups in your area. These relationships often lead to steady, high-trust referrals over time.

You can also tap into online referral platforms like Sold.com or ReferralExchange, which connect you with motivated leads in exchange for a referral fee at closing. Some charge monthly, while others are pay-at-close only – making them a low-risk way to boost your transaction volume.

Sold.com connects real estate agents to motivated buyers and sellers who are actively searching for real estate services – plus it’s FREE to sign up! Agents will only pay the agreed-upon referral fee after a transaction successfully closes. It’s a great way to fill your pipeline with leads without breaking the bank.

6. Create referable moments worth talking about

Referrals don’t just come from great service, they come from moments that make people say, “You won’t believe what my agent did.” These are the experiences that stand out to clients and they’ll talk about when someone they know needs a recommendation.

It doesn’t have to be extravagant. A small, thoughtful gesture will do the trick. Consider giving them a custom housewarming gift that’s tailored to their interests or a moving-day survival kit with a handwritten note. You can even drop off coffee and donuts on moving day. That can be just enough to make someone feel truly seen.

Custom name signs from EtsyCustom name signs (Source: Etsy)

Remember, referable moments are the things clients casually bring up in conversation with friends and family. Aim for experiences that feel personal, generous and unexpected. When you make clients feel special, they’ll want to tell others about it – and about you.

7. Spotlight happy clients in your social media marketing

Your past clients are your best marketing asset, and your social media is the perfect place to share their success stories in a way that generates referrals. Don’t just post a generic “Just Sold.” Tell a story. Be specific, thoughtful and relatable.

Instead of saying, “Closed in 30 days!” try: “After years in a two-story colonial, my clients finally found the perfect single-level condo. That means no more carrying the dog up and down the stairs! If you know someone looking for a fresh start, too, let’s chat.”

Stories like that create an emotional connection and make people think of others in similar situations. Always wrap them with a simple call-to-action like: “Know someone in a similar spot? I’d love to help.” The goal isn’t to promote the transaction itself – it’s to promote the transformation. When people see themselves (or someone they know) in your story, referrals follow naturally.

8. Turn local partners into vocal advocates

The people you work with the most – lenders, inspectors, attorneys and the business owners in your community – are powerful referral partners. They regularly talk to people going through major life transitions, which often include buying or selling a home.

Approach these relationships like a fellow entrepreneur. Start with the people you already know, then expand your reach. The goal isn’t to pitch your services, it’s to collaborate. Lead with value by promoting their business first by referring clients their way, posting about them on social media or partnering with them on a community event or charitable drive. Hosting a client appreciation night at their venue or featuring them in an interview on your blog or Instagram will create goodwill and mutual exposure.

Once the relationship is established, say, “If you ever hear someone talking about buying or selling, I’d love to be the agent you recommend.” Now the door is open to a mutual referral partnership.

9. Make every interaction referral-worthy

Every interaction is a chance to build trust and leave a lasting impression. You may be wondering how this relates to real estate referrals, but they’re tightly linked. The better you treat your clients, the more they will rave about you and refer you to their friends and family. If you truly go above and beyond, they will talk about you and share their experience.

Providing exceptional customer service also applies to your leads, regardless of the outcome. Treat every lead well, and be incredibly gracious and understanding when you face rejection – which will happen, it happens to all of us. Even those who don’t hire you may still refer you if they were treated with professionalism. It happens more often than you’d expect, and it starts with simply showing up well in every conversation.

Make it even easier for people to share your name by giving them something valuable to pass along. If they can’t use it, maybe they know someone else who can. Be sure you brand the information you’re handing out with your name, contact info and include a call-to-action like: “Have questions about buying or selling? I’m here to answer them.”

Here are a few easy-to-share resources to help you stay top of mind:

  • Home sale prep checklist
  • First-time buyer guide
  • Local market updates
  • Quarterly home maintenance updates
  • House hunting checklist
  • New listings in your area email blast

Whether you’re handing off keys or answering a quick question for a stranger, aim to be the agent they remember. When you consistently lead with value and integrity, your network turns into your greatest marketing team.

10. Show up in the community

Staying active in your community isn’t just about creating partnerships with local vendors and businesses. People want to work with agents they recognize and trust. Being present at local events, fundraisers, volunteer events and other charitable functions shows potential clients that you are involved in the community and will help build your brand recognition.

You don’t need to show up at every community event. Pick a few that appeal to your interests and show up authentically. Sponsor a local sports team, host a neighborhood clean-up or volunteer for a local non-profit. You’ll meet new people and be seen as someone who’s invested in more than just getting new business.

11. Give to get something in return

Reaching out just to “stay in touch” can fall flat. Instead, lead with a genuine offer to help. Share something useful, send a quick congratulations on a life update or connect someone to a resource they need, even if it has nothing to do with real estate.

This approach is rooted in what many call the law of reciprocity. When you help others without expecting anything in return, people naturally want to return the favor. It’s not transactional—it’s human nature. Refer three new clients to your hairstylist, and chances are they’ll think of you the next time someone mentions real estate.

But here’s the key: give without strings attached. Expecting a referral in return creates tension, and that energy can be felt, even if unspoken. Focus instead on helping others get what they want, trusting that the goodwill will come back to you. As Zig Ziglar said: “You can have everything in life you want if you will just help enough other people get what they want.”

12. Request reviews and ask for the referral

After a successful closing, ask for a review while your client experience is still fresh. Then add a simple line that asks for the referral: “If you know anyone else looking to buy or sell, I’d love to help them too.” Keep it genuine and easy to act on.

Just as important, be sure to thank anyone who sends a referral, no matter the outcome. It’s not about the result. It’s about recognizing the trust they showed by sending someone your way. If another agent refers a client to you, keep them updated and thank them again when the deal closes. The more appreciated your referral sources feel, the more likely they are to send the next one.

Best practices for asking for referrals

Asking for referrals is not the most natural thing to do. It can feel awkward, forced and sales-y. With the right approach, asking for real estate referrals becomes a natural part of the conversation. Let’s look at a few best practices when having these conversations.

  • Be specific. Instead of a vague “Let me know if you know anyone,” try “If you know someone thinking about buying or selling in the next few months, I’d love an introduction.”
  • Time it right. Ask after a major win, a solved problem or a successful closing—when your value is fresh in their mind.
  • Keep it casual and confident. Speak like you would to a friend, not a salesperson.
  • Make it about them. Let clients know that referrals help you continue doing work you love for people like them.
  • Follow up with gratitude. Always thank someone for a referral—even if it doesn’t turn into a transaction. A small gesture or handwritten note goes a long way.

Real estate referrals: FAQs

What is a real estate referral?

A referral estate referral occurs when a licensed agent or broker passes along a prospective buyer or seller to another licensed agent to handle a transaction. The receiving agent becomes the buyer or seller’s primary point of contact and representative, and the referring agent receives a referral fee if a transaction closes.

Sometimes, a real estate agent may choose not to work with a specific buyer or seller. Perhaps the client wishes to make a purchase that isn’t in the agent’s geographical area or their wheelhouse of expertise. Instead of giving up the business, the referring agent introduces the potential client to another real estate agent who is better positioned to help them.

Typically, once the referring agent introduces the client to the receiving agent, they will no longer participate in the transaction. Their work is done, and it’s up to the receiving agent to serve the client and close the deal.

What is a reasonable real estate referral fee?

There is no standard real estate referral fee. The fee is typically determined by your firm’s policies or in negotiations between the exchanging agents. On average, 25% of the gross commission earned by the receiving agent is customary. However, the fee can vary depending on the referral source, location and the complexity of the transaction and typically ranges anywhere from 20% to 35%.

Referral fee agreements should always be documented in writing using a referral agreement form approved by your brokerage or local association. Check out our article to learn more: Real estate referral fees: The ultimate guide.

What is the best real estate referral program?

The best referral program depends on your goals. If you’re looking for agent-to-agent referrals, platforms like ReferralExchange, Agent Pronto, and HomeLight are popular. For broker-provided leads, companies like eXp Realty, Keller Williams, and Real Broker offer in-network referral opportunities. For independent agents, building your own referral network through personal relationships and consistent follow-up is often the most effective long-term strategy.

The full picture: Real estate referral strategies

Referrals are one of the most powerful and sustainable ways to grow your real estate business. The more confidently and consistently you ask for real estate referrals, the more opportunities you’ll create. At the core, you’re simply looking for more people to help. When you lead with value and authenticity, people notice and will want to work with you.

Be genuine in your approach, follow up consistently and keep showing up. With time, your referral business won’t just grow – it’ll thrive.

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