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How do out-of-state referrals and commissions work
I was exploring the possibility of purchasing a property out of state (in Texas : ) ) and was wondering:
1. Can agents get commissions/referral fees for their own purchases out of state?
2. Has anyone done this before/how is this typically structured, is there a standard amount?
3. If I directly contact the listing agent - could I get the full buyers agent commission?
4. Also just curious if I referred someone to an agent out of state how would that typically be structured?
5. Would my brokerage need to be licensed in that state in order to receive commission/referral fee?
- Specialist
- Mendham, NJ
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1. Yes. It's the same referral out on any business, including your own, as long as all parties are licensed.
2. Yes, 25%.
3. No, you aren't licensed in that state so how could you get the whole commission? You want to use a buyer's agent for yourself unless you are experienced. Sometimes they will cut you a percentage break for using them, but I still want even eyes working for me.
4. You get a referral agreement signed for 25% and when they close for the client, you will get your check. It all goes through both brokerages.
5. No.