Can an agent pay an unlicensed individual a referral fee and are there limits? Also if you are an agent what are the normal referral fees for one agent to refer a client to another agent? I am in Texas so any Texas agents out there, I would really enjoy your input!

jc

Ask your broker / check local law - here in FL we are not allowed to give a referral to an unlicensed individual.



There are no set fees - how much is the referral worth? I've done referral fees anywhere from 10% to 100% depending on the deal/situation.

100%? Wow, can I refer some folks to you? ;0)

I generally pay 20 - 25%.

Perky - you're so silly. I didn't say I PAID OUT a 100% referral fee...I've gotten one, though

...not that I wouldn't pay out a 100% referral fee if the situation warranted it...

I've referred people out that were such a pain in A$$ I felt sorry for the poor agent that accepted the challenge I told him keep it all, you earned it.

I had another agent send me a client and wanted 15%. The client was such a joy, the deal went so smooth, I felted obligated to send 25% as opposed to 15. The agent has sent me another client, we have no agreement, just a pay me what you feel is right. So far she is on track for a nother big payoff, she does have some nice clients coming my way.

jcbrown

You don't say whether you licensed or not, if you not, which I suspect, are you just trying to use what an agent will pay another agent as a guideline of what you can ask for?

I do pay a small finders fees, or reward, for leads because that is allowed in my state. However no way would I pay an unlicensed person any thing even close to an agents referral fee.

Plus on finders fees you may run into a RESPA violation situation and in those cases, not even a dime will leave my wallet.

Plus in many of these type of non-licensed referrals the principles are unaware the person is trying to horn in on the deal and make some money off them and become quite upset at that helpful "friend".

What do you guys think is the norm for an agent to agent referral fee? 20 to 25 percent?

That's what I usually pay. Sometimes I give other agents a lead and tell them to just keep it, I don't want any referral from it. 20-25 is fair, though some demand 30.

I refused 25 percent recently just because of the way the whole thing came about. I told the "referring agent" that I would pay 20% as a courtesy to her. It was a friend who surfaced "after the fact" - oh, by the way, my school chum Nancy Jean is a realtor too and wants a referral.

That kind of thing is WRONG, if you ask me. If you want a referral fee, then earn it. Don't make your friends find an agent, find a house, make an offer, then say "Hey, I want some!"

Referals are a great way to ensure your client is getting the level of service they deserve. Knowing the background/experience of who I am referring my people to is very important. I am happy with 25% in most cases, might want more after the fact sometimes.

"I refused 25 percent recently just because of the way the whole thing came about. I told the "referring agent" that I would pay 20% as a courtesy to her. It was a friend who surfaced "after the fact" - oh, by the way, my school chum Nancy Jean is a realtor too and wants a referral."

I'd be embarrassed to even bring that up to someone who just helped me buy a house. Some people have no shame.

Perky you wouldn't believe the responses I get from friends and family when I tell them I'm going into real estate. Not a single positive comment.

Sometimes, I truly am embarrassed by others in our profession.

We are right above used car salesman according to the public. So don't look for people to go WOW you are in real estate that is impressive!

As far as refferals from leads it depends on how much work I have done. If they are on my drip system I would just take 10 percent. If I have called them,made contact,got them pre-approved and I am handing off a proven hot lead I want 25 to 30 percent.

My policy, if you can call it that, is to take (and pay) 20% for listing referrals and 25% for buyer referrals.

I just switched brokers. Just before my switch I learned that one of my referrals that I sent out closed in December. The referring company was very slow about getting the check and after numerous request we couldn't get a HUD. I finally contacted the closing attorney and they faxed it to me and I forwarded it to corporate.

Here comes the messy part.........The receiving office sent 25%of the gross (not the bonus). My company gave me my check minus a 35% franchise fee and minus my regular commission. I can live with my commission being taken out but 35% more for what?

I should have given the referral to someone here rather go through my broker.

It's not so much the money it's the principal of the matter.

My rant for the day.

A 35% franchise fee? WTF???? I gripe about my 8% franchise fee!