Starting a real estate sales business could be in fact quite risky. More commonly, one could go on for days on end without closing a sale, receiving a phone call, whilst the expenses and bills keep coming. Nevertheless, victory in real estate will generally come from maintaining fundamentals, such as:  having all the knowledge about information in your area or property, getting sales leads, and developing referrals.

One of the crucial aspects of real estate sales is the sales referral.  Most potential property buyers who search for a new home, office or any real estate, usually approach family, friends, and colleagues in order to ask for advice for a good broker. Further, most property owners or homeowners selling their real estate will go to a similar network in order to ask for brokers who will help them in the sale of their property. Unlike top of the range lawyers or specialist doctors, there is no readily available information that will call out for the skill and experience of a particular broker. So in a traditional sense, referrals can be achieved from person-to-person and by word of mouth.

At first, it would seem like an defective way to construct a business.  However, if a broker has good knowledge of his business and his properties, all it would take is a few good real estate sales to customers who were referred, and his sales would start to increase in force. Referrals to brokers are more important because they are able to provide direct contact to someone who considers purchasing property seriously. This will give a real estate practitioner access to his main target market, whilst regular advertisements through the media would have a very wide public, but not the real people who would like to purchase homes or properties. In marketing terms, a referral is equivalent to a successful promotional lead.

It is excellent that real estate referrals are such a “direct-to-market” lead. This is because there is another feature to the business:  Property acquisitions are nearly always the one most expensive purchase that a family can make. So, although referrals will provide you with people interested in purchasing a home or property, buying decisions are not always a rapid or sure thing. The total cost, location, design, need for repairs or renovations, ease of mobility or transport, and a multitude of other decisions should be considered before a buyer commits to buying a house.

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