How can I find agents from other brokers willing to pass along buyer leads for a portion of the commission?

Question

I am a relatively new Real Estate Agent in San Diego and I was looking for any tips/advice on how and where to go about finding listing agents that may be willing to provide buyer leads for a share of the commission. I know I could just go on the MLS and start calling every agent that I can find and see if any of them are willing, but is there a better way to go about this? I'm absolutely willing to pay a fair share of the commision received from their leads. I think my best bet would probably be to go after agents with smaller brokers, but I don't want to limit myself to just those individuals if I don't have to.

Do any of you have any experience or insight on pursuing this?

I really appreciate any advice you can provide.

Thanks,

Kevin Fox

Do any of you have any experience or insight on pursuing this?

I really appreciate any advice you can provide.

Thanks,

Kevin Fox

Kevin Fox · Answer

@JOAN DICKIE I love the idea of the marketing campaign for out of area agents.  How do you recommend I go about both finding agents from different cities as well as deciding which cities to target?  In regards to finding agents, I would think my best bet would just be taking to Yelp, but I honestly don't even know where to start when it comes to deciding what cities to focus my efforts on.  I would love any insight you may have.

@Joel Owens I'm very interested in the notion of pursuing new developments.  I have a few questions that I want to run by you, is it alright if I send you an email?

Kevin Fox · Answer

Oh Geez.  I'm so sorry for not responding to you all.  I thought I had set up the thread to notify me by email when anyone posted in my thread but I guess not.

Andrew Warner · Answer

Everyone on this thread has made some great insights for getting referrals. It's always great to learn from other agents. One thing I noticed wasn't mentioned is specialization. It works great in commercial real estate and may be useful in residential as well. When you specialize, for example, as an apartment broker and learn everything there is about apartments other agents will recognize you as the apartment guy and send you apartment referrals. You can also specialize on a certain area of town and learn everything about the market in that particular area. When you become an expert and know an area better than any other agent, other brokers will send you referrals for properties from your area. I think its important to also give referrals to other brokers for properties outside your area of specialization as well for this to work. After a while you will be getting referrals on a consistent basis.

Joel Owens · Answer

Hi Kevin,

FOCUS on what is selling in your market. If new home subdivisions are popping up then you can go work for one of them. No driving around like crazy and more normal hours. The product is similar every time you are selling so less hidden surprises to derail a deal and you can scale volume closings.

The referral thing you want to know how much they scrubbed and qualified the lead. Example if it's just a cold call or e-mail they are passing off it isn't worth much. If they have talked to them on the phone and they are fully qualified already by a mortgage broker and realistic in purchase price then those are considered WARM leads instead of cold and are worth more.

With  a referral you are taking a huge hit in income as a  new agent. As a broker I keep it all and own my business and make the decisions. As an agent if you are on say a 50/50 split and give up 25% referral you are now at 25% of commission before business costs and that is pre-tax before the other things hit. You are working hard for almost no money. Doing that you might just go the subdivision route where they are driving leads to you. The developer/builder will expect results or you will get canned after awhile. If you get good at it you can make a few hundred k or more a year.

Bryan L. · Answer

@Mark  Ferguson  - But I think that anyone with a NAID number can advertise a HUD listing can't they?  Even if they are not with the listing firm?

Mark Ferguson · Answer

@JOAN DICKIE great info, but not everyone can hold an open house on a HUD home.  Only agents within the listing offic can hold an open house in a HUD. I am a HUD listing broker and was happy to let other agents from other offices hold them open, but my asset manager said I can't.

Joel Belding · Answer

@Kevin fox go to the real estate schools and associations. Many times, the big listing brokers will post ads that they are looking for buyer brokers. Another thing to do is check mls for Realtors that have around 20 or more listings. Those are the guys that are getting so busy with their listings that they are willing to pass up on buyers in exchange for a few bucks.

I hope this helps!

-Joel

Jonna Weber · Answer

Joan- those are some great tips.  Campaigning out of state referrals is very creative! We are experiencing a large influx from out of state again here in Idaho - great idea!

Kevin - you may want to consider joining a real estate team to start. We have some teams in our brokerage with 20 or more buyers agents, and everyone seems to stay busy.   If not a formal team - find the busiest agents in your brokerage and talk to them.  I have found the high producers in my brokerage to be very willing to share their expertise and open house time.  Joan captured it well above.

JOAN DICKIE · Answer

First talk to your broker.  Then talk to other listing agents in your office.  Agents in your office will be more willing to refer buyers to you.  Agents with other brokers probably won't even talk to you about it, unless California has a lot of subagency.  (For example, it's rare here in WI)

The best way is to offer to do open houses on other's in house listings. If the listing agent doesn't have a team, they would probably be thrilled to have someone who would want to do an open. Theoretically you can do open houses on HUD homes regardless of who has the listing, but I have never seen it done before (which doesn't mean it's impossible, but I would clear it with the listing agent first).

Start a email campaign for agents in other cities asking for referrals.  Offer to pay an odd amount.  For example, if the typical referral fee is 25%, offer agents in Los Angeles 27% referral fee to send buyers your way.  If you can find out where most people are migrating from, work the agents in that area.