The Smart Way to Refer Clients Out of State

US Client mobility has become a defining feature of modern real estate. Job transfers, remote work, and lifestyle changes mean agents often serve clients moving beyond their own markets. Managing these transitions well benefits both clients and agents — preserving relationships, protecting income, and building a stronger professional network over time.

Why Out-of-State Referrals Matter

In today’s mobile world, clients often move between cities or across state lines for work, family, or lifestyle changes.
For agents, this creates opportunity — not competition.
A well-managed referral lets you stay part of your client’s journey, even after they leave your market.

When handled professionally, referrals build both income and reputation. They also create relationships with other agents who may later send business back your way.

Step 1: Choose the Right Partner

The most important part of any referral is the agent you choose to receive it.
Rather than selecting someone based on name recognition or social media presence, focus on data and fit.

Look for:

• Local expertise: They actively sell in your client’s target area.

• Strong communication: They respond promptly and clearly.

• Proven performance: Closed deals in the past year, with solid reviews.

• Professional alignment: They share your service philosophy.

A quick background check through MLS production data, online reviews, or mutual connections can make the difference between a smooth experience and a client complaint.

Step 2: Put It in Writing

A written referral agreement protects everyone involved.
It should outline:

• Referral fee percentage (commonly 25%)

• The client’s name and contact information

• The broker names and license numbers for both sides

• Expiration or validity dates

• Payment method and timeline

Both brokers should sign before the referral is transferred.
In California and most states, this step is not optional — it’s required for a referral fee to be enforceable.

Step 3: Communicate Expectations Early

Once you’ve connected your client with the receiving agent, send a short summary to set expectations.
Include your client’s goals, timing, and preferred communication style.

Clients appreciate knowing you’re still involved, even if you’ve stepped back from the active transaction.
Meanwhile, the receiving agent benefits from a clear handoff and avoids duplicating early discovery questions.

Step 4: Track Your Referrals

Maintain a simple system to record the referrals you send: client name, agent, agreement date, and anticipated close date.
Follow up once mid-process and again after closing to ensure all documentation and payments are complete.

A well-kept log of referrals can also become a marketing asset later — proof of your reach and professionalism when networking with other agents.

Step 5: Build a Long-Term Network

The most successful agents treat referrals as long-term relationships, not one-time transactions.
Each solid connection in another market expands your professional reach and creates a future opportunity for inbound referrals.

Take time to thank your referral partners and keep them updated on your own market activity. Consistency builds trust — and trust keeps your name top of mind when they need to send business your way.

Key Takeaway

Out-of-state referrals are a low-effort, high-value way to grow your business ethically and collaboratively.
Handle them with structure, communication, and professionalism, and they’ll become one of the most reliable income streams in your real estate career.