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As always Jill Murty, Realtor - Orange County, CA is spot on. Especially about the right fit.
Jill Murty, Realtor - ...
Laguna Niguel, CA
Well my brokerage has a set rate for incoming and outgoing referrals so that makes it easy. I have referred business out that wasn't through the office and I make a jusdgement call. Once I felt bad for an agent who had been helping her buyers look for a home and they kept getting priced out of the market - for 4 years. So she convinced them to look in another area that she wasn't familair with and asked me to help them. First day out, second house we saw they made an offer and we closed. I gave the agent 30% because she had worked for so long to help them.
Los Angeles, CA
Adele Langdon Since everything is negotiable, I would go with your company's standard referral fee and go from there.
You and the agent who will be potentially receiving the referral should chat about it and come to an agreement.
The agent receiving the referral will probably invest a lot of time and money into marketing the property. They never would have had the chance to do that but for you. Realtors negotiate, so do that.
First and foremost, make sure that the realtor receiving the referral is a good fit for your client.
Oro Valley, AZ
Maybe a good question to ask yourself is what would you think reasonable if someone handed you a 2 million dollar listing and ask you to set the referral fee.
Oro Valley, AZ
A nice commision, good for the referer and the referee.
Jill Murty nailed this one!
Whatever you can get. Remember who is doing most of the leg work. Over a Mil is 20%
If it's open for bids, let's talk. ;)
It's all about what you and the other agent feel is reasonable and appropriate. They will be doing the work, I'd want to ensure they were highly skilled, competent and experienced at or near this level. Keep your clients interests first and you'll come out fine. Put your intrerests first and you may lose everything.
25% is typical in our area.
The normal referral fee in your area!
If you ever have a client for my area, I'd go up to 40%( with no refunds to a client).
Just say a word:)
I would talk with the right agent about it and not be afraid to ask what is fair in the marketplace.
Adele Langdon Referral fees mostly are negotiable.
I agree with Jill, the two of you should talk it out using your office's guidelines to start.
I would ask for 25% unless your company is taking some off the top and then I'd ask for 30%. You don't know if you don't ask.
25-30% of total listing comm.
The referral fee is important, but it is more important that the property gets marketed properly and results in an ultimate sale and your friend gets the absolute best service possible. Finding the right agent is #1 in my opinion.
Whatever both sides agree upon.
I think that Carol Williams gave you the perfect answer. Nice to hear from you Adele, and we wish you a great March! A
I think it would depend on what % commission is being charged.
Shop around for different brokers. Ask them what they are willing to pay you for the referral.
Although I am not good at the balancing act when it comes to referrals you should ask yourself what you'd expect to be compensated if the roles were reversed.
I would gladly pay 20% for a referral like that.
What would you expect to pay in a similar situation and go from there.
Seems that referral fees are often 25% but that varies from agent to agent and probably less for higher end homes
Good question I how much would you like to see
Keep it low/reasonable so that they see you as part of the solution. If you do any type of work or assistance, raise accordingly. In fact, offer services perhaps even co-list for a nice bite...Watch the greed (yours not theirs)