Recommendations in the real estate community are so common that offices in some jurisdictions usually enter into exclusive transactions with each other. This is a great way for an agent to put a customer in the right direction while charging a fee when a transaction takes place. A referral agent sends you a customer who buys a home for $US 100,000. The expelling agent must document the transfer in order to ensure the collection of the fee from the other licensee. A transfer fee agreement form is the most reliable proof of the agreement. [See Form RPI 114] If you`re looking for a way to diversify your lead gene strategy without becoming too dependent on third-party sources, it`s time to start growing your agent-to-agent referral network. But be warned that there is a right and wrong way to do it. Once the client and the recommended agent have been introduced, a recommendation agreement should be signed. This incurs and validates the referral fee, usually 25%, and all other terms of the agreement. A real estate recommendation agreement is used when an agent has a client whom he wishes to refer to another agent for a fee. This is most often when a client requests services outside the agent`s jurisdiction or when they request real estate services that the agent does not offer. Remember that each market has its own tacit but solemnly respected “rules” on what is considered good practice in these types of agreements.
If an agent refers a potential customer to another agent, a referral fee agreement is used to document the referral. The referral fee agreement is a broker-to-broker recommendation form. A recommendation between brokers and is not to be confused with a Finder`s Fee agreement, as a discoverer is an unlicensed person who finds clients for a broker and his agent. [See Form RPI 115] This is where brokers and agents best serve their clients by referring them to another broker or agent who can provide the service the client needs. Therefore, the agent who correctly makes the transfer charges a fee from the brokerage service that accepts the recommendation. Intermediation fees are earned if the client makes a real estate transaction in which the other brokerage office receives a fee. Conversely, an unlicensed discoverer has no such responsibility. The function of discoverer is limited to the identification and transmission of potential participants in real estate to agents, agents or principals, subject to the promise of a fee. They are landlords, period. 25% is the national average amount of transfer fees (Zillow). In her presentation at the 2017 Tom Ferry Summit, Melissa explains how building strong relationships with other agents earned her US$151,000 at GCI, all from agent-to-agent network recommendations. A discoverer who offers referral services in California for a fee can: Like all things in this business, negotiating the correct recommendation agreement depends entirely on your personal goals and business limits.
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