You’ve heard of Real Estate Referral Agents and are you wondering what it is? Real estate referral agents are becoming increasingly popular in the real estate industry. These agents are not traditional real estate agents who buy or sell homes for clients. Instead, they specialize in connecting clients with other real estate agents.
Real estate referral agents are particularly useful for clients who are looking to buy or sell property in an area that is unfamiliar to them. These agents have a vast network of real estate agents across different regions and can connect clients with an agent who has expertise in the specific area the client is interested in. By doing so, clients can be assured that they are working with an agent who has the knowledge and experience necessary to help them achieve their real estate goals.
In addition to connecting clients with agents, real estate referral agents also provide valuable services to real estate agents. They act as a bridge between agents, connecting them with potential clients who are looking to buy or sell property. This can be particularly useful for new agents who are just starting out in the industry and are looking to build their client base. By working with a referral agent, they can gain access to a pool of potential clients and start building their business.
What is a Real Estate Referral Agent?
A real estate referral agent is a licensed real estate agent who refers clients to other agents or brokers in exchange for a referral fee. Referral agents do not actively participate in buying or selling properties, but instead, they act as a middleman connecting clients to other agents and getting a commission for that referral.
It’s actually great to be a Real Estate Referral agent because you earn a commission by connecting potential clients with real estate agents. Imagine earning thousands and all you have to do is make a phone call and send an email!
These fees are typically a percentage of the commission that the agent who closes the deal receives, and can be a significant source of income for referral agents who are able to refer a large number of clients.
How Does it Work to be a Real Estate Referral Agent?
It’s easy to be a Real Estate Referral Agent. All you do is provide the lead and connect clients to real estate agents.
Here is a simplified step by step process of exactly what happens.
Step 1: You Have a Lead
You have a potential client. I find that potential clients are usually family or friends or friends of a friend looking to buy a home and they need a real estate agent to help them. Leads can come from anywhere really, at a party, at an event or even an email or phone call from a friend who needs an agent.
Step 2: You Find a Real Estate Agent to Refer to
This is probably the hardest part of the real estate referral process. You need to find a real estate agent to work with the potential client. If you’re lucky, you may already know a real estate agent to take on the potential client.
You need to research and identify a suitable real estate agent who can meet your potential client needs. You can consider the agent’s experience, expertise, and track record in the specific market or area.
One way to find a real estate agent is to check the real estate directory of a local brokerage firm and simply call a few agents to “interview” them to see if you like them and if they are the right agent for your potential client.
Another way to find a real estate agent is to call a local brokerage firm and ask the managing broker for an agent to work with your client. They can usually give you the names of a few real agents who will be able to help your potential client and you can contact these agents directly to “interview” them to see if the agent is suitable for your potential client.
Step 3: Negotiate the Commission
Once you’ve found a real estate agent, you will need to negotiate the commission. There is no set referral commission fee but it’s typically 25-35% of the agent’s total commission. You negotiate the commission by giving the other agent a call and then confirm it with a written contract.
Step 4: Send the Referral Contract to the Real Estate Agent
Before you connect your lead with the real estate agent, you should send a referral contract to the real estate agent and ask him/her to have it signed by their managing broker. The referral contract will have the agreed upon referral commission and the name of the potential client.
Step 5: Connect Your Lead with the Agent
Now it’s time to introduce the real estate agent to the potential client. You can introduce them by email and a phone call. After the initial introduction, it’s a good idea to follow up with the agent and the potential client to see how they are doing.
Step 6: Get Paid a Referral Commission
Earn a referral commission! This is the best part of the referral process. Just sit back and wait for the sale to close and once it closes, you will earn your referral commission.
Referral agents are licensed real estate agents who do not actively participate in buying or selling properties, but instead, refer clients to other agents. They act as intermediaries between clients and agents, connecting clients with agents who specialize in the type of property or area they are interested in.
Referral agents typically work with clients who are relocating or looking to buy or sell properties outside of their local area. They may also work with clients who have specific needs or preferences, such as those looking for luxury properties or investment opportunities.
Referral agents do not typically provide real estate services directly to clients, but they may offer advice and guidance on the buying or selling process. They may also provide resources and information on the local real estate market, such as market trends, property values, and zoning regulations.
In summary, referral agents play a vital role in connecting clients with the right real estate agents and helping them navigate the complex world of real estate.
How Much Do Referral Agents Earn?
Referral agents refer clients to real estate agents or brokers in exchange for a commission. According to the National Association of Realtors (NAR), referral fees typically range from 20% to 35% of the commission earned by the real estate agent or broker. This means that if a real estate agent earns a commission of $10,000 on a transaction, the referral agent can earn anywhere from $2,000 to $3,500.
While referral fees can vary depending on the location and the agreement between the referral agent and the real estate agent or broker, referral agents can earn a significant amount of money without having to be actively involved in the buying or selling process.
It’s important to note that referral fees are not regulated and can vary depending on the agreement between the parties involved. Referral agents should always disclose the amount of their referral fee to their clients and ensure that they are complying with any state laws or regulations regarding referral fees.
Referral agents can earn a steady stream of income by referring clients to real estate agents or brokers. However, it’s important for referral agents to build relationships with reputable real estate professionals and provide quality referrals to ensure a successful and profitable partnership.
How Do Referral Agents Get Paid?
Referral agents get paid through a commission split with the agent who ultimately closes the deal. This means that the referral agent receives a percentage of the commission earned by the agent who actually sells the property. The exact percentage can vary and it will be based on what you’ve negotiated, but it typically ranges from 20% to 35%.
Once the deal closes, your Real Estate broker (Nestbux), will receive the commission check. You will get your referral commission less your Real Estate brokerage fee.
Frequently Asked Questions
How to Make Money as a Referral Agent
Referral agents make money by referring clients to other real estate agents. When a referred client buys or sells a property, the referring agent receives a percentage of the commission earned by the agent who closed the transaction. The percentage varies depending on the agreement between the referring agent and the receiving agent.
Referral Agent Job Description
A referral agent’s primary job is to connect home buyers and sellers with real estate agents who can help them buy or sell a property. Referral agents do not actively participate in the buying or selling process, but they play an important role in connecting clients with the right agent.
How Do I Become a Referral Agent in New York?
To become a referral agent in New York, you must hold an active real estate license. Once you have your license, you can affiliate with a brokerage that allows referral agents. Nestbux is a real estate brokerage firm that solely works with referral agents. Find out how you can join Nestbux’s real estate referral brokerage firm!
How Do I Become a Referral Agent in Connecticut?
To become a referral agent in Connecticut, you must hold an active real estate license in CT. Once you have your license, you can affiliate with a brokerage that allows referral agents. This only works if you don’t plan to actively help clients buy and sell properties and you just want a referral brokerage firm to associate your real estate license with. Nestbux is a real estate brokerage firm that solely works with referral agents. Find out how you can join Nestbux’s real estate referral brokerage firm!
How Do You Refer a Client to Another Agent?
To refer a client to another agent, you must first establish a relationship with the receiving agent. Once you have identified an agent who is a good fit for your client, you will need to obtain the client’s consent to make the referral. You will then need to provide the receiving agent with the client’s contact information and any relevant details about the client’s real estate needs.
What is a Referring Broker?
A referring broker is a licensed real estate broker who refers clients to other agents. Referring brokers can earn a percentage of the commission earned by the agent who closes the transaction.
Real Estate Referral Agent Marketing
Referral agents can market their services to potential clients in a variety of ways, including social media, email marketing, and networking events. It is important for referral agents to establish themselves as knowledgeable and trustworthy in order to build a strong referral network.