I received a new contact a while ago from one of my web sites. A family moving to Toronto from Calgary.

They found me on the net, we exchanged e-mails, phone calls, narrowed the list of possible properties, their home is sold and they’re ready to buy.

Friday I get a call from a national re-location firm. In return for their name the relocation company wants a 35% referral.

I said I already have their name, however, if the relocation company will put me on their list for future work I’d love to have a relationship with them. They said they don’t do business that way.

I told them I was happy to co-operate in a reasonable way, but I couldn’t understand the value they were adding to the process that justified such a fee. Given how easy it is for the public to connect with realtors in other areas using the internet.

They said “Oh Well.”

I thanked the person for the opportunity and asked her to FAX through the papers for me to look at and I would let her know if I was prepared to accept the terms. (stall, important step)

She called later in the day and I told her thanks but given the price range we were talking, and the expected work involved , the return after expenses didn’t justify my effort, and I would cut my loses now.

She said the client was very clear that I should be their agent ….

I said “O Well ....... I’ll explain to them I work Saturdays to feed MY family”

We negotiated a 20% referral fee …..

I’ve done a lot of relocation work and never been able to get this kind of deal.

…. But I’m going to be asking for it next time.

Cheers..............

Good news for you. I have found that, especially with one the biggest relocation companies, they have come back to me after I have removed conditions with a mutual client for a referral fee. I am very happy you were able to get a negotiated fee based on a relationship you developed with the client.

Makes you wonder though since referral fees have been increasing over the years how much of this money grab by the relo companies is justified.

Was this a major relo company or small player?

Thanks for posting your experience. I've been doing relo since entering the field 25 years ago. Back about 1993 or so, the 35% idea took root. Glad to hear there is someone else who is prepared to walk.

Some corporate relo offices feel that the relo is a "gift" to the agent. No so. There is no less work doing a relo than any other sort of transaction, and there is actually more paperwork involved. BTW - I mostly decline to use "their" paperwork routine. Way too much paper, that I discovered no one on their end really uses. They are all far too busy to read through my volumes of reporting. They want to "talk it through," so fine - I use my paperwork and attach it to their forms for record keeping purposes and paper trail. Never had a complaint. It's just a matter of assuming control of the situation. You give them what they need to get their job done. Do a good job and chances are word will get around. At my web site read Carolyne's Clients Speak.

Recently many agents have had to deal with "after the fact" referral fees claimed by corp relo. That's a big no-no.

I gently explain that since I already had done business with their employee, he already was "my client." He found me himself, either on line, or through colleagues at his place of work who had used my services. Sometimes I negotiate a different relo fee, as you did; other times I walk if they won't give in. Yet again, if the client insists on having me represent him, relo just goes away in many cases. It's important to do what's right by the client, but in this case he is "our" client. If relo is going to insist, they need to pre-educate their employees better.

One thing agents must be careful of though in working with relo clients - sometimes the corp tries to "punish" the relo client by removing part of his relo package if he does not use an agent of their choosing. The employee needs to express his wishes clearly to his employer. Good agents are hard to find. When the employee has located one of the best himself, he will want to stick with that agent, chances are.

"Going where tomorrow is - hope to see you there." Carolyne

Proudly putting my name to my work ~ CAROLYNE ~ Realty Corp.
Brampton real estate = http://www.carolyne.com

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