what is the standard referral fee from agent to agent/broker to agent?

What if the buyer is an investor and a on going buyer, 
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April 10 2011 - US
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Answers (18)

Exactly Derrick. I pay referral fees of avg25% for a referral. But I don't pay referrals for the fact they worked with the client elsewhere. In fact a course of times for good will I offered someone 10% as a courtesy for them having lost a client. They got irate because it wasn't more. The agent doesn't do much business and is young. And extremely pushy
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March 14
In my area we do 30% for a qualified customer but not far away is 25%
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March 14
I'd be interested in seeing how much production the other agent does.  It all goes back to if they had a buyer broker agreement for your county.  An introduction can be with 10% - 50% but it's hard to pay for a referral when there is no referral by definition. Re·fer·ral riˈfərəl/Submit noun 1. an act of referring someone or something for consultation, review, or further action.
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March 14
I have a situation where an agent is asking for a referral fee even though the buyer came directly to me. She is hounding the buyer saying I should pay her one because she had worked with him in another county and it seems "fair". I explained referral means referral as in she sent this buyer to me and that is not the case. What are your feelings about this?
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March 14
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July 17 2013
Jackie,
For a list of 200 names....I would want at least somewhat warm leads I think.

Whatever you do, make sure it is in writing.  Upon receipt, have a timeframe to strike off any names you may have already contacted.  I'm sure you keep a log of your calls...so proving this should be no problem.

Whatever my fee, it would be less for a list of 200.

If an agent in Boston for example, were to send me their Nephew as a buyer, that is preapproved.  That would be worth more to me than a list.

Good Luck!!
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April 11 2011
Profile picture for Dunes....
Yes some Agents don't charge or expect a Referral Fee but it is a common practice is it not and many Agents do charge or expect a Referral Fee..and 25%+ of the Commission is not uncommon or rare or an exaggeration..

Is this not so?...

I also think Agents are more concerned about the Consumer being fully aware of this accepted existing practice "Service?" "Assistance" so freely offered that they pay for without being told....rather handsomely pay for

All kinds of "I got a referral for you" in the Forum nary a I can send you to an Agent who will pay me/my Agency 25+% of the Commission for a Lead that buys..wonder why?..

No need to know or ...if they know?

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April 11 2011
please be wary any time an agent or broker (especially small house) mentions the words 'customary, typical, or standard' when referring to commissions or payments. There is no standard, and it's a violation of anti-trust laws to imply that there is between brokerages. Some agents have their own rates set in place, and that's their prerogative. I would negotiate any fees to what you can live with, whether it scales or involves retainer or whatever. hope this helps.
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April 11 2011
agree that it resembles discussing commission and price setting etc so hopefully everyone will be careful and mindful with their answers.    It varies and is negotiable.  I don't ask for a referral, all I ask is that who ever I send the referral to take care of the customer and serve them well and if they ever have one in my direction to expect the same of me.  So far...that only works one sided  :)  but I'm ok with that. I only refer a customer away when it's out of my area not when I'm too busy- when I'm busy, I hire a new agent to help me with things that will free up my time.  In the past, I've referred a client a few times locally and found that I stress the whole time over whether or not the other agent is taking care of them and then butt in and bother the agent etc.  best to just keep them and hire an assistant in those cases.
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April 11 2011
It's pretty much situational. No standard. If your doing everything for your client that you can, that would also involve a referral fee. (once everything is finalized) However, is sending you a list of 200 people an actual referral?
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April 11 2011
Profile picture for Dunes....
PS-Please Remember....... "You get what you Pay for"
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April 10 2011
Profile picture for Dunes....
"there isn't much skill involved in finding a decent agent (it takes only minutes)."

Really...We have very different opinions about that

There IS skill involved in finding a prospective qualified buyer and that is what the referral fee is paid for..
Apparently that Skill is valued by Agents/Agencies at 25+% for Agent to Agent and 40+% for relocation companies based on comments made on RE Sites by Realtors ...

Again..Really

It's not that I doubt Agents believe this but have serious doubts any non-agent/member of the public is buying that Pie..or use of the Money THEY pay for Services..especially those Agents so free with the "Let me refer you to" without mentioning they will be paid for doing so from the Commission they will pay..25%+ of the commission they will pay
Referral Fees from One Brokerage to Another and Agent Split
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April 10 2011
I have a large property listed that is a horse facility. There is a  out of state agent  who works closely with "horse people". She found out about my listing and  wants to send me a list of 200 names of people she knows who are qualified buyers. My first thought is if she sends me a buyer from out of state or some area in my state that I would never know about I don't really have a problem sending her a referral fee, but what if there is someone on the list that I have personally contacted, there is a  lot of "gray area" here that could cause a lot of "issues" to arise.
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April 10 2011

In my experience, the referral fee is paid when a transaction makes it to the closing table regardless of the qualifications of the buyer, the agent, or the referring agent.

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April 10 2011

There isn't a standard, and make sure you have both brokers involved in this because the situation could get very ugly come the purchase of house number 2. The investor needs solid representation without having to worry about agents not giving full attention because they are worried about what they are getting paid.

In reference to answers already given, there isn't much skill involved in finding a decent agent (it takes only minutes). There IS skill involved in finding a prospective qualified buyer and that is what the referral fee is paid for.

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April 10 2011
How much work is actually involved in a referral? 
Do you think most agents even spend an hour researching or clicking a few keys on their keyboard?

What skills are involved in that?
Realizing that most agents don't even spend that hour, how much do YOU think its worth?
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April 10 2011
Profile picture for Dunes....
Let the auction begin!

"I can refer you to a good Agent"  says the helpful Agent

Kinda cheapens those words a bit considering the real motivation for doing so lol



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April 10 2011
Careful Jackie...this is much like commissions....  It is some where between Zero and 100%.    Mine is different from yours, and Bob's is different from both of those.
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April 10 2011
 
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