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Real Estate Fight Club

8
Aug 2022

What Is A Fair Referral Fee For Real Estate Agents?- EP 150

August 8, 2022

On this episode of the Real Estate Fight Club Podcast, Jenn and Monica are going to duke it over what is a fair referral fee for real estate agents? When should it vary, what is fair for the different scenarios? The standard for referral fees is 25% but tie-breaker Kate says it all depends on market to market and relation to relation. Tune in to get all the details.

 

Episode Highlights:

  • Just because somebody wants to work with you doesn't mean that you have to work with them. You need to set your standards, says Jenn.
  • It's important to have referral partners that you can refer  business to and there are opportunities to also make money.
  • Referrals depend on the situation. You can ask for a higher referral if it's a listing and it depends on how involved you are going to be.
  • Monica says that referral and client relationships also depend on what kind of market you are in. 
  • If you remember the days where the buyers were coming back, and they had ten houses to choose from in one weekend, that was when agents were charging higher.
  • Monica doesn't discuss a referral to another market because she will never benefit in the future. But if agents do it in the right way, they can cultivate multiple leads from referrals.
  • Monica has separate out of town clients and she communicates with them separately. There is an education piece that goes with it as well.
  • It would be really important to set a goal back in your home market and that has to be an intentional stream of income, says Monica.
  • Tie-breaker, Kate Dawson from Keller Williams Cincinnati answers questions about fair referral fees. 
  • Kate has passed out a lot of referrals and she has not retrieved a lot of referrals. She shares experiences and thoughtful insights.

 

3 Key Points:

  1. In the present market scenario, you charge higher because the receiving agent is going to make a lot more money, says Monica.
  2. Jenn shares about referral partners in different markets.
  3. Kate has a referral partner in Kentucky and when she gives her continuous business, they have a 50-50 agreement no matter the price point, no matter whatever.

 

Resources Mentioned:

Kate Dawson:

  • 513-560-0660

 

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