WHEN DID "REFERRAL" BECOME A DIRTY WORD??

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

WHEN DID "REFERRAL" BECOME A DIRTY WORD??

This post inspired by Justin Gramm describing how he feels about the referral fees.

Mr. Gramm doesn't accept referral fees because:  "I just don't feel right asking to be compensated simply for taking an hour to do some research and refer my friend/client to a competent agent in another state."

Unlike Mr. Graham, many agents DO accept referral fees because:

1.  Our experience through the day-to-day practice of real estate brokerage gives us the knowledge to identify agents qualified to serve the buyer's or seller's needs.

2.  We are often well connected to industry professionals through networks like ActiveRain to identify qualified practitioners that match the buyers specific needs.

3.  Agents are more responsive to another agent about their experience and specialties when seeking help for buyers with specialized needs.

4.  When requested by a buyer or seller for an agent referral, the consumer relies on our experience and knowledge to meet an agent that will help them with their specific needs.

5.  Experience and knowledge in real estate brokerage are acquired through practice, training and continuing education.  That knowledge and experience is cumulative and compounds over time to give us the insights to identify good referral agents. 

Even if it takes only an hour to identify a good referral agent, that hour reflects our training, practice and experience.  

Making a quality agent referral has value, surely value equal to or more than some of the other tasks we perform for buyers and sellers. 

Experienced agents and brokers understand that,

WE ARE PAID FOR WHAT WE KNOW, NOT WHAT WE DO. 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 

                                            

                                       Agent Referrals

"John.  Congratulations on finding your home in New York so quickly.  How did you find your agent?"

"Thanks Sue, the agent who sold our home in Virginia referred us to him.  Yes, he did a wonderful job."

 

Posted by


_______________________________________________________________________________________________________


Want to learn more about Loudoun County, VA? Join Loudoun County, VA on Facebook!

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
AR Twitter Users
Club Chaos
Real Estate Trends
Realtors®
The Ninety-ninth Percentile
Tags:
referrals

Comments 39 New Comment

Rainmaker
398,592
John Cannata
Texas Home Mortgage - Purchase or Refinance
214-728-0449 http://TexasLoanGuy.com

Lenn - I do not see an issue with an agent collecting a referral fee, so I have to agree with you here.

February 04, 2010 10:24 PM
Rainmaker
814,135
J. Philip Faranda
Broker-Owner
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

A good referral creates commerce. If you help create commerce you are entitled to compensation. 

February 04, 2010 11:10 PM
Rainer
20,629
Jen Olson
First Weber Group Realtors

Lenn-  I definitely think that referrals are a good thing.  I always get as much information as I can to pass along to the agent that I am referring to.  I think that it is important that I give the agent I am referring to not just a name and contact number, but anything else that I may know that will best help that agent assist the client.  I have received referrals that the agent literally has nothing other than a name and number.  I sometimes get a bit annoyed that for that I need to pay out, but then I remind myself that I may never have gotten that lead if not for that referral.  So in the end, any referral is worth a huge thank you to the sender!

February 04, 2010 11:17 PM
Rainer
20,629
Jen Olson
First Weber Group Realtors

Lenn-  I just linked to Justin's post that you mentioned here.  I do accept and pay referrals fees, but I also wouldn't have a problem referring a client to him, if he were the best suited for the job.  I think that he makes some valid points about full disclosure- IMHO, anyway.

February 04, 2010 11:39 PM
Rainmaker
312,527
Carol Culkin
Overland Park
Reece & Nichols

Lenn - I consider it a finders fee for matching a buyer to an agent.  In the case of a buyer I am usually bringing a qualified buyer to the agent and not just a looky-loo.  Seller referrals are those who I have determined are ready to list NOW.  I believe in sending quality referrals to other agents - I think anybody would find value in that.  I feel I am entitled to put a price on my time and efforts. 

February 05, 2010 09:35 AM
Ambassador
2,277,479

Lenn Harley

Real Estate Broker - Virginia & Maryland
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: