Word-of-Mouth vs. Online Agent Ratings

How do most people find their real estate agent? Research shows that many consumers ask their friends, family, and colleagues for recommendations. With help from some agent ratings experts, I'm going to explore the problems related to these word-of-mouth referrals. I'll also explore a growing trend in finding an agent: online agent ratings.

A Broken System
There are a variety of problems with word-of-mouth referrals. Two of the biggest I see are:

• Strain on interpersonal relationships. Not only with the agent themselves, but also with the person that referred them. If you ask someone to recommend a real estate agent, the person that they recommend will most likely be a friend of theirs or their own real estate agent. What if you decide not to use the agent they recommend? There's a very good chance you'll run into them at a BBQ, party, or even around town – and it could be awkward. That's just one example of the myriad interpersonal conundrums that can ensue.
• What are the criteria for the recommendation? Most consumers wouldn't ask, but they really ought to – "Why are you recommending this agent?" Chances are, the honest answer would be, "Because I know them and I like them." Does that mean the potential client will like them? Does that mean they're actually good at what they do? Oftentimes, the person making the recommendation has never even dealt with the agent in a professional capacity. I don't know about you, but I wouldn't want to choose an agent who was only recommended because he's on my Uncle Charlie's bowling team.

However, as Larry Romito of Quality Service Certification, Inc. (QSC) points out, "Word-of-mouth recommendations are impactful. People trust their friends and family members and value their opinions." Given how powerful word-of-mouth recommendations are, we can certainly expect them to stick around. So how do you make the most of them?