How Many Agents Find New Business
March 17, 2016
For most real estate professionals, their referral network is their strongest ally in getting new clients.
Indeed, 61 percent of recent home buyers reported they found their agent through a referral or they used an agent who they worked with in the past. Forty-one percent were referred from a friend, family, neighbor, or relative; 12 percent used the same agent they had worked with in the past; and 5 percent were referred by another real estate agent, according to the National Association of REALTORS®’ 2015 Profile of Home Buyers and Sellers report.
Read more: How Did You Get My Name?
On the selling end, 73 percent of home sellers said they used referrals from someone they knew or a real estate agent they previously worked with.
The following is a breakdown of the top ways buyers found their real estate agents, according to the 2015 Home Buyers and Sellers Report:
61% referrals and repeat business
- 41% referred by a friend, relative, or neighbor;
- 5% referred by another agent;
- 3% referred by an employer;
- 12% used the same agent as before.
12% digital marketing
- 10% from their Internet website;
- 1% search engine;
- 1% mobile application.
11% in-person contact
- 5% visited open house;
- 4% had personal contact by agent (e.g. telephone, e-mail, etc.);
- 2% walked in or called the office where the agent was on duty.
Using the internet and working with a real estate agent appear to go hand-in-hand. But which gets called upon first? Forty-four percent of home buyers say they first looked online, and 33 percent then contacted a real estate agent, according to NAR’s data.
Twelve percent of buyers surveyed say they found their agents online (10 percent from an Internet website and 2 percent from a search engine or mobile application).
“Referrals and repeat business are no doubt the number one source of new business for real estate agents, but digital marketing is indeed how agents capture an additional fifth of their entire business,” according to a recent post at NAR’s Economists’ Outlook blog about the survey’s findings.
Source: “How Real Estate Agents Acquire New Business,” National Association of REALTORS® Economists’ Outlook Blog (March 15, 2016)
Updated: November 20, 2018