Word of mouth referrals and explanation of experiences is probably the biggest factor for a business, it is up to you to decide if you’d like to keep your referral method pure or if you’d like to try using a business that gets paid to refer people to you. In her new blog post, Elizabeth Weintraub summarizes how real estate referral agencies work, how the commission is split, who is responsible for any fees and outlines a few reasons why this topic is controversial.
- A real estate referral agent does have a license in the same way that a real estate agent does, but generally does not list properties.
- Referral agents are agents for real estate agents, acting as the means for house-sellers and buyers to find their best agent choice.
- Although the specific percentage varies, these agents generally require anywhere from 10 to 50% of the total commission received.
“But suppose you learn that your source got paid to recommend someone to you.”