Real Estate Referrals from Financial Advisors

Referrals from financial advisors are the best form of business a real estate agent can get. Yet why do so few real estate agents tap into this perfect referral source? Watch this video to learn three reasons you’re not getting referrals and what you can do about it!

Summary

Justin Stoddart discusses the benefits of referrals from financial advisors for real estate agents, emphasizing that such clients are more likely to wait for the agent, pay them, and be grateful. He identifies three reasons financial advisors don’t refer real estate agents: they don’t see agents as equals, don’t think agents can help them, and see agents as liabilities. Stoddart suggests strategies to address these issues, including positioning oneself as a team player, providing market analyses, and focusing on client relationships rather than transactions. He also recommends asking for introductions over referrals to mitigate perceived risks.

Outline

Referrals from Financial Advisors: Introduction and Benefits

• Justin Stoddart explains the importance of referrals from financial advisors for top-producing real estate agents.
• He highlights that clients referred by financial advisors are more likely to wait for the agent, pay for their services, and be grateful afterward.
• Justin contrasts this with clients found online, who are more likely to replace the agent if they are not immediately available.
• He emphasizes that clients referred by financial advisors appreciate expert guidance and are open to long-term relationships.

Reasons Financial Advisors Are Not Referring You

• Justin shares insights from his book “The Upstream Model,” where he interviewed financial advisors about their referral opportunities.
• He notes that financial advisors have 18 opportunities per year to refer real estate agents but rarely do so.
• The primary reason given by financial advisors is that they do not see real estate agents as equals or as part of their ongoing client relationships.
• Many financial advisors view real estate agents as competitors who encourage clients to move money out of financial markets into real estate, which is not conducive to a collaborative relationship.

How to Earn Financial Advisors’ Trust and Referrals

• Justin suggests having a conversation with financial advisors after being introduced by a client to establish a collaborative relationship.
• He advises real estate agents to position themselves as part of the financial advisor’s team, deferring to the advisor’s expertise in managing clients’ wealth.
• Justin recommends discussing the importance of ongoing client relationships and annual reviews to demonstrate the agent’s commitment to clients.
• He emphasizes the need for humility and gratitude when approaching financial advisors to build trust and respect.

Demonstrating Value to Financial Advisors

• Justin suggests estimating clients’ real estate assets under management to demonstrate the agent’s awareness of their clients’ wealth.
• He highlights the importance of not focusing on closed transactions but on maintaining ongoing relationships and being aware of key life events.
• Justin shares a tactic for real estate agents to provide financial advisors with current market analyses for their clients’ properties.
• This approach helps financial advisors create a family office-like experience, where the agent’s work is discussed in meetings, positioning the agent as a valuable resource.

Addressing Financial Advisors’ Concerns

• Justin addresses the concern that financial advisors see real estate agents as liabilities and prefer introductions over referrals.
• He advises agents to ask financial advisors for introductions instead of referrals to alleviate the risk of poor performance reflecting poorly on the advisor.
• Justin suggests spending time with financial advisors to understand their client experience and how the agent can integrate into it.
• By demonstrating value and understanding the advisor’s needs, agents can turn potential liabilities into assets, making them more likely to receive introductions.