What's the most valuable asset of any business? Trust. A recent paper published in the Harvard Business Review proves what most business people have suspected for a long time: Our brains are hardwired to value trust above anything else in a business relationship. Therefore, anything that helps breed a solid, trustworthy business relationship is going to pay tangible dividends.
Trust in Richmond VA real estate is a particularly powerful asset—perhaps as valuable as the property itself. The value or a stable relationship lies in the sense of comfort it creates in both parties. In a real estate transaction, because so much is at stake, this sense of comfort is a necessity. A realtor referral relationship with a property management company is a great way to build trust with buyers, sellers, and future and present business partners.
How the Realtor Referral Program Works
A Realtor Referral Program in Richmond VA allows a realtor to refer eithera client who isn't ready to sell their home, or a real estate investor client to a property management company the real estate agent is partnered with. The company then manages the rental of the property. The realtor benefits financially, and the homeowner benefits because of the convenience and extra income. When the homeowner is ready to stop renting the property and sell it, the property management company hands the owner back over to the realtor to complete the sale.
A Realtor Referral Program is a useful option for real estate agents who have clients who want to sell but not right away, or have a home that the market is rejecting. There are several reasons why this may be the case:
The client wants to sell but sees a need to keep the property
Perhaps the equity of a property is being considered as leverage for a loan. Holding onto and renting the property, for the time being, may be the best option.
The client needs to move and doesn't want to sell at the moment
Circumstances can change quickly. Sometimes a move has to happen suddenly, and selling is not the best option. Renting is a great way to buy some time while making money in the process.
The client wants to sell but needs time to improve the property
Properly preparing a home by handling critical issues can add a lot to its value. But this takes time. So does finding the right place to live. Renting out the home can be a convenient option.
How the Realtor Benefits
Even when you take into consideration the money a realtor makes off the referral, the most significant benefit is the trust they earn from the client. A potential seller likely has their sights set on getting a profit. When they realize selling is not a viable option at the moment, they may be dismayed at the thought of not realizing the profits they had envisioned. The Realtor Referral Program allows the realtor to be the solution.
Instead of shrugging off the relationship and hoping to connect when the seller is ready, referring the client to a property management company helps the seller make money they probably weren't expecting. Usually, when the time is wrong to sell, the only thing to do is wait. With a Realtor Referral Program, while they wait for the market to favor a seller, your clients are making money!
Better still, they'll be making pure, passive income: the definition of "Set it and forget it!" This kind of relaxed wealth generation is only possible when you partner with an expert property manager in Richmond. When you lack an in-house property management service, partnering with a reliable property management company is crucial to building the kind of trust that fuels your future sales!
Client Satisfaction Breeds Long Term Success
Giving clients helpful options builds a foundation for future success. If you ask any successful realtor how they do it, they will tell you how valuable client referrals and repeat business is to their success model.
Giving Richmond clients helpful options when they are in a bind helps build trust. Clients are not just likely to feel indebted; they are going to want to return for more great service. In the long run, the list of returning clients grows to the point where it becomes a significant source of revenue.
How the Realtor Referral Program Helps Build Trust That Pays Off
For most people, their house is like a part of the family. They don't want to leave the care of the property in the hands of just anybody! Moreover, when you do right by someone by taking great care of their property, you earn valuable "relationship capital."
Having a property management company take fantastic care of a client's property makes you, the realtor, the home-saving hero! Most real estate agents are well aware that enhanced relationships result in referrals, future business, and a whole new source of income. If you'd like to open up new avenues for your real estate business, join Mission Realty's Realtor Referral Program today!