Realtor Referral fee ? - Posted by Maurice (Ca)

Posted by Redline on May 03, 1999 at 12:43:31:

Maurice, I’m a realtor here in NJ and a little confused about what you’re trying to write up and what you’re trying to accomplish by writing it up?

The way I see it - you are using them to find property, right? They call you and then you buy from them, right? So they are collecting their commission, right? So what’s the problem?

If they are worried about you cutting them out of the deal, or going to another realtor to buy once they refer you then you don’t have the proper relationship established. Work with them, tell them you will pay their fees as long as they produce. You can even offer them cash incentives/bonuses (ONLY through their broker) if you feel it necessary.

The fact that you MAY (and should!) be using OTHER realtors/brokers to find deals is irrelevent. So writing up an agreement (if I understand you correctly) would probably be something like a “buyers broker” arrangement and I would not sign that if I were you.

If they’re working for you, and you’re taking care of them … then what’s the problem?

RL

PS - It’s normal and standard practice here to get an address from a realtor and drive-by the property. Some realtors are reluctant to give you this information. Use another realtor if they won’t. On the flip side - if you do call the realtor to get the address and you do want the property, fair play says you should use that realtor and pay them.

Realtor Referral fee ? - Posted by Maurice (Ca)

Posted by Maurice (Ca) on May 03, 1999 at 24:02:54:

Hello:

I have a question concerning referral fees to realtors. I just met a great husband & wife team that have been an asset in providing me with MLS leads. They are new to the real estate business however, another realtor suggested to them that we have some sort of agreement written to ensure they get their fee when a property closes.

I’m not familiar with this practice (I am still very new), but willing to do a written agreement. The oral agreement is a referral fee between $350-$1,000 depending on the profit & if it closes. Can someone, especially a real estate agent, give me some pointers on this. Again, I have no problem with writing something up with them. What they lack in experience, they make up in motivation to make money, learn r.e. investing & to of course call me with leads. If you have done something like this, I’d be interested to know how you worded it & what structure you used to figure how much to pay them.

P.S. Is it asking too much of an agent to just call you with an address if it meets your criteria & allow you to drive by yourself without them being there? Again just a drive by.