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.
"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."