Question about referral fees for the real estate agents??

I know quite some friends who would be interested in selling their properties and I was wondering whether I can approach to the real estate agent and offer them some kind of conjunction deal for if I have successfully referred the clients to them and then I get some sort of commission? Therefore, it will be a win win situation for all 3 parties i.e. me, my friend and the real estate agent.

So basically, if my people's sign the agency agreement, I get a fixed amount of fee. Of course, in the end, they might not successfully sell the house for whatever reasoon and may not renew it after the agency agreement have expired. AND if it is successfully sold, I get another fixed amount? So there are 2 fees here depending on their succession

But before I make the proposal, I am wondering whether this is allowed and if so and is also common, what are the common fees that will be paid as a referrer?
 
So are you going to recommend an agency BECAUSE they will pay you a fee?

That doesn't sound like a friendly thing to do.

I recommend one of my local agents to friends all the time. I do it because he's great and I like my friends. I want them to sell their house easily and at a good price.

Sorry if I have your intentions wrong.
 
So are you going to recommend an agency BECAUSE they will pay you a fee?

That doesn't sound like a friendly thing to do.

I recommend one of my local agents to friends all the time. I do it because he's great and I like my friends. I want them to sell their house easily and at a good price.

Sorry if I have your intentions wrong.


It's not about being friendly or not, it's about reality. There is no free lunch in this world. I mean, let's face the fact, every real estate tries to lure customers to sell their houses whether it is door knocking, flyers etc, and they'd even lie, under quote or DO ANYTHING to get customers or make a sale.

Since I have the upper hand and I know which agent is good, I don't see what's wrong with receiving a referral fee because this is a all 3 win situation i.e. me, the seller and the agent. NOW, if like you said, you refer the agents to your friends, this will be 2 win situation, i.e. the seller and the agent. YOU? None. Unless the agent is a very very good friend of yours or you are rich and you don't care the opportunity slip by where there is a chance you can gain some extra cash.

I basically never trust the agent whether they are nice or not (unless he\she is my good friend, then it's a different case) because they have always fake faces behind them according to my 40 years experiences for selling or buying for anything, not just in real estate.
 
I basically never trust the agent whether they are nice or not (unless he\she is my good friend, then it's a different case) because they have always fake faces behind them according to my 40 years experiences for selling or buying for anything, not just in real estate.

If you feel this way, why on earth would you want to go into business with them?
 
Fair enough. When I said the agent's great I meant at his job (OK he's a nice guy too).

I see your point if you are recommending a good agent, not just one to get a handout.

No harm in asking I guess.

Actually I received a pamphlet in my letterbox the other week offering a coffee maker to people who recommended someone that led to a listing. Times must be tough.:D
 
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I basically never trust the agent whether they are nice or not (unless he\she is my good friend, then it's a different case) because they have always fake faces behind them according to my 40 years experiences for selling or buying for anything, not just in real estate.

Mate, is your grandmother also for sale. Seems like you are willing to sell your friends.:( Are to going tp divulge the fact that you are getting a commission with your friends?

Cheers
 
I would doubt that an agent would pay you a referral fee, they may give you a gift but I doubt they will give you cash.


Agents do pay referral fees - they are normally paid to other agent (out of area), solicitors, valuers, accountants.

In order to receive a referral fee (normally 20%) you would need to be registered for GST, provide an invoice. Also the referral fee must be disclosed to the vendor in writing - part of the Selling agency agreement.
 
Commissions

In Victoria you would need to disclose payments as an REA to 3rd parties. IE commission splitting. I also wonder about the ethics of an agent that perhaps does not disclose this situation. I'd also be wary of the Trade Practices Act if I were the agent and is not disclosing. Bottom line I don't see my friends as a source of income - might just be my value beliefs are different to others.

Ca-Ching$$$ Ca-Ching$$$

Just my two cents worth
 
If the people you intend to charge for referrals are your friends, why on earth would you not point them in the right direction for nothing rather than see what you can get out of it?

I apologise in advance if your intention is to share your windfall with said friends....though a reason you would look to make money from friendship escapes me.
Marg
 
Maybe a better and more ethical thing to do is decide how much you want the agent to pay you ... then negotiate the agent to drop their commission by that amount ... then your friend truly wins ... as do you ... freind for life ... and you know what ... the agent gets a sale so in my book ... 3 way win.
 
If you say that......then that means for those salespeople (as a middleman) who promote common products say....health products and they introduce to their friends to buy it (even when the friends have NEVER mentioned to get one), then can you say "why on earth can't you just directly purchase from the manufacturer and not from me??"

The answer is really simple. It;s not about the matter of trying to get a friend to pay me or trying to milk him, it's the AGENT I am charging (not the friends) due to the matter of fact is that he is indeed interested and you want to helping him out but at the same time, I am sure me and my friend don't want to give 100% benefit to the agent, right?

Like for me, sometimes I get friends who tells me "Hey, can you please sign under me becasue I get the referral fees from it" and if I am interested in that particular service or product, OF COURSE I AM HAPPY TO SIGN UNDER MY FRIEND. Would you? (provided you are really interested it, and not just helping your friend get the benefit that simple) Or would you say "er....you are trying to milk me and rip me off, so go away".

Let me ask you a simple question. Say I know a very good agent who does well in the job. If I introduce a friend to the agent, surely the agent will do his best to drive the highest price, if the referrer gets 20% of the commission....say....it's $10,000 (which is $2000). Now....if I NEVER made a suggestion of getting the referral fee, the agent basically laughs and say "Thanks, here is my $10K". Now, I made this suggestion, then, I would recieve $2000 and the agent gets $8000. So if you were my friend, would you say "oh yeah, I rather give you the benefits than giving FULL commission amount to the agent" OR as a friend, you would say "No, I want to give the FULL to the agent". Of course, you can treat your friend a nice dinner or a holiday. So that is why, this is a 3 all win situation, becasue as a friend, you want him good and I want him good....it's just that not many people have thought of this, that's all



If the people you intend to charge for referrals are your friends, why on earth would you not point them in the right direction for nothing rather than see what you can get out of it?

I apologise in advance if your intention is to share your windfall with said friends....though a reason you would look to make money from friendship escapes me.
Marg
 
Personally, I would not feel comfortable knowing that $2K out of the $10K I was paying an agent to sell my house was going to my "friend". I would feel rather ripped off and I believe it would change the friendship somewhat.

I would never know if the agent my "friend" was sending me to was because he/she was a great agent, or because there was $2K in it for my friend.
 
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