Referral fees are generally 25 to 30%… Frankly for me it depends on the transaction amount. If it’s less than a $500K transaction, I’ll take less of a referral fee and if it’s over $1M, I’ll take more… i’ve seen as much as 50% when you actually hand over $1M+ listing for a personal referral. Our brokerage encourages our 89,000 agents in 24 countries to not only work referrals in all 50 states but in any of the other 24 countries that we operate in. Agents are encouraged to negotiate the splits direct with no ‘cut’ taken by the brokerage. It’s also left to the agent as to whether or not they want to ‘double-end’ the deal… I believe that if the seller hires us to sell, oftentimes that means we need to write up an offer rather than sit and wait for a buyers agent to do so. Listing agents are hired to sell and somehow we’ve gotten away from that for fear of the buyer not being fairly represented. I represent the seller and will look out for their best interest in submitting offers, as necessary. Also, as you work with more and more sellers, that will lead to many buyer leads… I wouldn’t dismiss working with them, particularly in this challenging market. May be more than you asked for @Mike Schorah but hope that helps! A lot of agents make a good living just off of referrals… but as suggested earlier, it depends on your broker’s policy so check there first. -All the best.
