Thread: Referral Fee 25% from broker and agent?

Originally Posted by lola traylor

Just wondering...as a licensed real estate agent, if I make a lead referral to another agent, would I receive 25% of the agents 3% AND 25% of the brokers 3%?

Thanks.

No, your broker would recieve 25% of the referred brokers commision and then give you your split.

Originally Posted by lola traylor

Let's assume that I only give my referrals to my broker?

Or second option is to only give referrals to my broker or if he is too busy to give it to one of his other agents (in my office).

I guess my question is - Does my portion of the commission (my referral) increase if the agency is retaining the full 6% (inhouse listing).

Thanks,

Lola

No, because you are only referring the principal for one side of the transaction. The only way you could gain your referral on the whole six percent is if you referred both the buyer and seller in a transaction.

Just curious... why are you referring this buyer to your own broker? Why aren't you writing the contract, doing the work, and taking your rightful commission?

Well... a good starting point for any solid referral is 20%. Of course that's subject to negotiation, sometimes even after an initial agreement is reached. Even when receiving referrals from experienced agents the client is not guaranteed to be all they were originally made out to be.

I had a referral for a buyer from an agent in a neighboring office this weekend. We agreed verbally to a 20% referral. After speaking to the prospect on the phone this morning it became clear that this individual is not ready to buy... he's got credit problems, employment issues, and a host of other 'issues.' Will I continue to work with him in hopes of a sale six months or a year down the road? Sure. Meanwhile I've hooked him up with a good financial person to repair his credit.

I called the referring agent back and explained the circumstances. She was very apologetic and told me she wouldn't bother sending over any referral paperwork. I could have him.

I did take the opportunity to have a long chat with the other agent. We have a lot in common and had a great conversation. I learned about the areas she and her team specialize (horse farms), so if I ever have a buyer needing that specialty she's now in my database. And I'm in hers. If she sends me a well-qualified client who's pre-approved and ready to sign a contract... then I'd happily sign a 25% or 30% referral!