Thread: Rules in Referral

Referal fees are usually 20% everywere. And good money for not having to do any work. Just make sure you get the referal commission agreement
back before any phone #'s are exchanged. Remember you have Realtor friends in every State. Even me in Georgia, Lots of people move here from
NY. In referance to your broker getting some of the referal mmoney. its not a transaction in NY, But you are under a employment contract. Read your contract first to see if it covers referal fee's. Because, all commission
has to go thru the broker. He's the best person to ask how much money he will get off of your referal.

Hopfully we can do some business. Lots of people moving to Georgia , Not very many moving to NY.


Les Williams
E & R Realty Group Inc
lenderles@yahoo.com

Central Oregon is a little more generous or greedy - depending on how you want to look at it.... we typically pay and receive 25% - our average commission is 3% per side - on a home and 4% on bare land

our's average 3.5 to 4 a side and 5 on land.

I am a Las Vegas Realtor also. At this current moment, I do not have a referral partner in New York. I would consider adding you to my referral base as being my New York referral agent. I would ask you to do the same for me though. I know you have friends in the business, but sometimes friends are the hardest to work with. I would also consider paying you a higher referral fee than most do (25%) on all business you were to send me.

For your other question: yes, you can only get paid legally through your broker, in which he will split your commission based on your percentage.

Let me know if you might be interested in being referral partners with me. I do come across people moving in and out to and from New York also.

Hey guys. Im a Realtor in Miami. Our referrals are usually 20% and the commission is usually the standard 3% on residential, which is the market I focus on. I have done a lot of work with out of town buyers coming to Miami. And actually right now, I think those are the best people to work with in my market.

I have never seen anything below 20% but I have seen referral agreements of 30%+.

I guess it depends on how thirsty or agressive the agent is whom is offering the referral.

It's real estate. Everything is negotiable.

I see 35% referals all the time. Standard though is 25% in Utah.

Originally Posted by k3nn3th

I am pretty new and just got my state exam result (PASSED) yesterday. I am on the process of interviewing and finding a sponsoring broker, so forgive me for asking naive questions.

One reason I was motivated in becoming a real estate sales person is because of my friends from Las Vegas and Florida, two of the hottest real estate markets to date. I am from New York and NY'ers love moving to those two states I just mentioned. My quesiton is. My friends wants me to advertise in the local paper here and they said any lead/sale that I can generate for them I will get a referral fee. Is that even legal to do since my license will be for NY only and not for NV and FL? If it is, should every transactions go through my broker and should he/she gets a cut too? What is the reasonable referral fee(% wise) for these two markets?

Thanks for any input!

First Congrats on passing
We work in Daytona Beach Florida. As a rule of thumb, we pay 25% for referrals
Feel free to contact me at any time with any questions you might have about my market

Originally Posted by Lenderles

our's average 3.5 to 4 a side and 5 on land.

Wow! You guys are fortunate. I work in the suburban Philadelphia market and most of our comps are at 2.5% with some at 3%. There's a lot of pressure on commissions in this market and we have a lot of discounters.

I am interested in knowing if this is legal in your states. In PA our commission splits don't have to be 50/50. If I have a listing at 6% I can keep 3.5% for myself and comp out 2.5% to the buyer agent.

I don't do this with my listings because I don't like it and don't believe it's always fair. For some agents and brokers this is standard practice.