Under the Property, Stock and Business Agents Act in New South Wales (Australia) Buyers’ Agents are not permitted to offer inducements for introductions to prospective buyers; “An agent must not offer to provide to any other person any gift, favour or benefit, whether monetary or otherwise, in order to induce any other person to engage the services of the agent as agent in respect of any matter.”
However, Real Estate Agents often recommend prospective buyers simply on a good-will basis, and this is good practice for you as a selling agent.
As an example, imagine that you have been dealing with a buyer who wants a specific type of property but you don’t have a suitable listing currently on your books. This is the perfect opportunity to demonstrate your desire to help them and initiate an on-going close personal relationship in the future. There are important benefits to you:
- You have done a favour to the buyer by demonstrating your desire to help them at no personal gain, and they will appreciate your selfless advice and integrity as a selling agent. Sooner or later they will come back to you.
- The client may go cold on you and begin dealing with another agent (most likely a competitor). So it is better to use the opportunity to refer them to a trusted Buyers’ Agent who you know will look after their best interests. They will remember you for this.
- The Buyers’ Agent will repay the favour in future by personally recommending you as a Real Estate Agent as you have now established a relationship based on trust and goodwill.
The message to real estate agents in this article is that people will always remember you for helping them, and forget you forever if you don’t even try!