Real Estate Broker · Portland, OR · Member since 2014 · 292 posts · 114 votes
Hello BP!
A lot of times when people call in they are not necessarily motivated to sell at our price, but do want to sell. Most of the time these people want market value and would be interested in listing with a real estate agent. My question is: Is there a way I can sell these leads to Real Estate Agents? There is no one in the office who is a licensed real estate agent and as our company grows we are getting properties in more and more areas where we do not have connections with local real estate agents. I do not want to throw these leads away and I feel as if I drip on them it wont be as valuable as listing them. Is there a way I can get money for all these potential listings? I know accepting refferals in some states is illegal, but what about Oregon and Washington? Thanks!
Real Estate Agent · Chicago, IL · Member since 2013 · 386 posts · 218 votes
11y
In Illinois its illegal to accept a commission without being licensed.
However, if you are getting that many leads its worth investing and getting your license. You can then have you license held with whats called a Holding Company.
Where you don't have to pay association or MLS fees, but you can legally accept commissions. I'm sure if you reach out to your local Real Estate association and ask them about holding companies they can give you referrals.
Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
11y
Referral fees and costs for leads is probably not illegal. But a post out here on bp and see if there is a creative investor friendly agent in the areas you work who needs more leads. I'm sure someone would love you pay either initially for the lead or give you a referral fee if the lead converts into a listing/closing.
Real Estate Broker · Portland, OR · Member since 2014 · 292 posts · 114 votes
11y
Thanks everyone for the advice!
@Stephen Kiser , from what I gather it is illegal for an unlicensed person to receive a finders fee, however another licensed realtor from another state can accept the fee if it is a cooperative sale. Unfortunately, this does not help me very much unless I get licensed but thanks for educating me!
@Nick Patterson I have thought about getting my real estate license and you are right that it would definitely be worth it if I am getting this many leads. Thanks for the advice! I may use that as a long term strategy for the future.
@Ericka Parrott I have thought about posting something in the market place, but I wanted to make sure it wasn't illegal in Oregon or Washington first. Stephens post makes me wary about selling leads in Oregon, but I may do more research on selling them to people in Washington.
Thanks again for all your posts and thoughts! I really appreciate them!
Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
11y
From what I understand, selling leads is not the same as a referral fee (which is generally illegal without a license).
There are all kinds of entities (particularly on the web) that sell leads to various types of marketers without licenses. The difference is that you cannot be compensated based on a transaction. This is why finders fees and bird-dogging are problematic.
The link that @Stephen Kiser posted refers to "sharing compensation," by selling names for a flat rate, you are not sharing compensation. The problem you may run into is marketing real estate services without a license, so be careful.
For example if you sell leads for $50-100 a pop and the fee has no correlation to a transaction, it might not be a problem.
I would just pick up the phone and call your real estate division and ask. Either way, if you are generating this type of interest, it seems silly not to just license up.