Real Estate Referral Fees
The real estate referral fee is an all-important part of your job as an agent. Let's talk about them and some common situations.
We all know them, real estate referral fees are deeply ingrained in the industry. And where you are standing, you will either love or hate them. But nonetheless, they are an important aspect of referring your clients to other agents, who may be better suited to help them. And at the end of the day, you want to do what’s best for your client. And sometimes what’s best is sending them away. Today let’s talk about what referral fees are and how NuOp can help you grow and collect more.
What Are Real Estate Referral Fees?
Simply put real estate referral fees are a portion of the money paid to the agent who referred their client to another agent. This is how a good amount of money is made between agents. It helps agents get over the fear of losing out on valuable income and serve their clients better. As put perfectly by Chris Linsell for The Close, “As much as real estate professionals strive to be the go-to resource for all things real estate for all their clients, there are occasions when a client’s request is something we simply can’t deliver on.”
There are a lot of different reasons for agents to use real estate referrals as well. Such as out-of-state/market clients, unqualified for the client, timing issues, and more. Let’s look at these three a little more closely.
Every state has different regulations that have to be followed in order to do business in that state. For example, let’s say you have a client that comes to you from Maine a coastline state. You are an agent in West Virginia a more landlocked state. You have very little experience in that area and outside of that, there are different licenses and requirements needed. So you do the next best thing, send them to your friend who is an agent in Maine. Or better yet use the NuOp live feed and find the perfect agent for your client in seconds. So you don’t even have to use the phone.
Unqualified For The Client
This is nearly the same as the above example. But instead of a state-by-state basis, this can be closer. The same state or city even. There are all types of agents that specialize in all different aspects of real estate. Commercial, residential, industrial, and so on. If you get a client looking to buy into a commercial space and you are a predominantly residential agent, is it a good idea to try and work with this client? In a perfect world yes, we want to help everyone we can. But here it could lead to disaster, so the best thing to do is again, send them to a more qualified agent in commercial real estate and take the real estate referral fees.
Finally, we end with a more niche one, but it’s important nonetheless. Sometimes when you are looking for referrals you find none, other times you are swamped with them. Even more so if you are a broker. Then you are infected with the issues listed above times a million. Maybe you have more than one out-of-state referral that you can not handle and maybe there are more clients asking for things outside your area of expertise. How do you handle referring all of these clients? Well for a time it was painful. It involved a lot of emails and phone calls. But now NuOp is here and is the solution to your referral tracking and sending needs.
NuOp – The Referral Solution
We talked about referral networking recently and if you wanted to read about this more in-depth, click here to check it out. NuOp is a great option for all kinds of professionals not just real estate agents but everyone at all levels. Home inspectors, carpenters, builders, and so on. Really anyone that relies on referrals NuOp is a solution to the many issues current-day referral exchanges pose. Such as insane pricing just to join and a lack of good communication. Also, NuOp helps you identify exactly who you should be spending your time with. No more wasted time on leads that go nowhere, which means more money for you! Lastly, among other great features, NuOp will not take a cut of your real estate referral fees. What you make you keep. Unlike other platforms that will yank a large cut.
Once you sign up now, you will see how much easier your life will be. And you will have more time to focus on what’s most important. Yourself.