Today’s home builders often have a talented team of marketing professionals armed with tried-and-true strategies and tactics for attracting home buyers to their communities. As modern digital marketing continues to evolve and encompass a variety of channels (think social media, email, SEO, etc.), there’s something to be said about good, old-fashioned word-of-mouth marketing in the form of customer referrals.
In an industry facing an affordability crisis, homebuyers want to be unequivocally certain that the home they buy is high-quality and located in a wonderful community built by a reputable builder whose team was a joy to work with. Simply put, they want to find a home worth battling the market’s complicated headwinds.
A buyer seeing aesthetically pleasing model home walk-throughs on social media or acquiring an email about the perks of living in a particular community will help keep your builder top-of-mind. However, receiving a referral from a trusted friend, family member, or coworker in their sphere of influence can also be instrumental in scheduling an appointment of their own. In fact, according to Harvard Business Review, those who receive a referral are more likely to make a purchase and, in turn, give a referral of their own.
In this article, we explore why referrals matter in home sales, share proven referral marketing ideas, and break down why homebuyer referrals work in the current housing market.
Why Homebuyer Referrals Matter
Referrals Increase the Trust Factor
Buying a home is the biggest purchase most people make in their lifetime. As such, the decision to buy can be stressful. Buyers want to find their dream home and work with a team they can trust to help them navigate the home-buying process.
Today’s customers trust recommendations from friends and family far more than ads or online reviews. If a new home sales professional on your team went above and beyond to make the new home journey transparent and seamless for a first-time homebuyer, chances are those buyers will talk with their siblings or close friends who are about to embark on their home search for the first time. When a trusted family member or friend has had a positive experience with your builder’s sales team, the home buyer will already have some established trust before making an appointment. Remember, home buying is an emotional and high-stakes decision — trust matters more here.
Lower Cost, Higher Quality Leads
When referrals aren’t on the table, marketing efforts and dollars are used to attract cold leads. While these efforts do result in successful sales and ultimately happy homeowners, the process does add time and cost on the part of the home builder. On the other hand, referred home buyers are often more qualified, motivated, and ready to engage with your sales team.
Compounding Effect
Referrals are known to grow exponentially. There is no gatekeeping here! If a buyer is referred to your new-build community by a trusted friend and has an equally positive experience, they are likelier to give a referral. One happy buyer can lead to multiple future sales. Remember that referrals are great for building your brand and reputation in the local community and beyond.
6 Referral Marketing Ideas for New Home Sales Agents
Deliver an Exceptional Buyer Experience
First, your referral marketing efforts will be worth nothing if the overall buyer experience you provide is subpar. You have to be a stellar new home sale agent to earn referrals. Go back to the basics and remember your sales training. Be highly responsive, transparent, and emotionally supportive throughout the process. Communication with the buyer should always be clear and proactive, even after the sale.
How to Ask for Referrals in Sales
Identifying the right moment to request a referral can be tricky, but often, when an appointment is going well, the opportunity will present itself. Popular moments include after a successful walkthrough, during the closing, or when buyers express satisfaction with the overall experience. A simple “If you know anyone looking for a home like yours, I’d be happy to help them too” is sometimes all it takes.
Create a Referral Program
If you don’t already have one, create a homebuyer referral program to help incentivize satisfied buyers to share their experience with friends and family looking to buy a home. Offer small tokens of appreciation, including gift cards to local businesses, tickets to a sporting event, or pay for a session of yardwork from your community’s preferred landscape company. Always keep in mind your company’s policy and local laws when incentivizing referrals.
Stay Top of Mind Post-Close
In today’s world, it’s not hard to stay connected with happy customers. Consider sending them an email, a message on social media, or a handwritten note to celebrate their home anniversary or if your community is having a block party or holiday event. End the note by saying you’re available and ready to help if anyone they know is looking for a new home.
Leverage Online Reviews
One of the most popular referral marketing ideas is encouraging recent home buyers to leave community reviews or share their home-buying journey online. This can be in the form of social media posts or Google reviews. As the sales agent who orchestrated the sale, you can share photos, testimonial videos, and “welcome home” posts on your and your builder’s social media accounts. Always ensure you have permission from the homebuyers to share their names and likeness before posting.
Homebuyer Referrals: Where to Start
If you’re nervous about how to ask for referrals in sales, remember that it comes down to three things: delivering value to homebuyers, staying connected with satisfied customers, and building trust with new ones. Earning referrals isn’t luck; it results from hard work and intentional actions that all new home sales agents can take. If you’re unsure where to start, consider starting with one small tactic a week, whether a quick follow-up email or a brief thank-you call, and build from there.
