MultiplyMyIncome
02-21-2008, 11:57 AM
The following are excerpts from emails in which one realtor happened to receive one of our hand written yellow letters that we send out as part of our lead generation.
When we mail out our yellow letters we normally intend for them to get to people selling their homes without an agent. Occasionally, they go to someone who already has their house listed with someone or to people who are agents themselves. We don’t like to step on toes if someone already has a contract with an agent so we make that known to the agent, and also inform them that we work with several realtors for referrals if their listings aren’t selling.
Follow the conversations between Chris (our industry expert) and the realtor, Karen to understand how to handle a realtor contacting you about the yellow letter he/she or their client has received.
From: Karen
Hi Chris, I got a message from my clients that you are interested in 61 M Street. I am the listing agent. Please give me a call or e-mail me back on this... I would love to get you into the property to view it. Let me know if you are using an agent... Thanks, Karen
From: Chris
HI Karen Those letters go out by my niece who runs my investment company with my son. If it's listed just let us know if it doesn't sell. Lots of agents refer to us instead of losing listings if it gets to that and we pay a referralfee if we buy it. How much is it on for with you?How much is owed?Does the seller need all their equity out or can they wait on some? PS I'm licensed in Ma and RI myself. I sold my business in Ma. in 2000 to Coldwell Banker but still dabble a little in that end of the business as well. Have a nice weekend.
Question on the above dialogue: Are realtors allowed to take referral fees?
Answer: Realtors can defintely take referral fees.
It's when an unlicensed realtor (like an investor) referrs out to a licensed realtor that poses a different scenario. Licensed realtors are not suppose to pay a "referral" or "commission" to a non licensed person.
In the past, I have seen realtors avoid that by simply paying a "consulting fee" or "profit share" to an investor. Let's face it, realtors can hire a coach or consultant any time they want and aren't a lot of investors smart consultants? I'd say so.
When we mail out our yellow letters we normally intend for them to get to people selling their homes without an agent. Occasionally, they go to someone who already has their house listed with someone or to people who are agents themselves. We don’t like to step on toes if someone already has a contract with an agent so we make that known to the agent, and also inform them that we work with several realtors for referrals if their listings aren’t selling.
Follow the conversations between Chris (our industry expert) and the realtor, Karen to understand how to handle a realtor contacting you about the yellow letter he/she or their client has received.
From: Karen
Hi Chris, I got a message from my clients that you are interested in 61 M Street. I am the listing agent. Please give me a call or e-mail me back on this... I would love to get you into the property to view it. Let me know if you are using an agent... Thanks, Karen
From: Chris
HI Karen Those letters go out by my niece who runs my investment company with my son. If it's listed just let us know if it doesn't sell. Lots of agents refer to us instead of losing listings if it gets to that and we pay a referralfee if we buy it. How much is it on for with you?How much is owed?Does the seller need all their equity out or can they wait on some? PS I'm licensed in Ma and RI myself. I sold my business in Ma. in 2000 to Coldwell Banker but still dabble a little in that end of the business as well. Have a nice weekend.
Question on the above dialogue: Are realtors allowed to take referral fees?
Answer: Realtors can defintely take referral fees.
It's when an unlicensed realtor (like an investor) referrs out to a licensed realtor that poses a different scenario. Licensed realtors are not suppose to pay a "referral" or "commission" to a non licensed person.
In the past, I have seen realtors avoid that by simply paying a "consulting fee" or "profit share" to an investor. Let's face it, realtors can hire a coach or consultant any time they want and aren't a lot of investors smart consultants? I'd say so.