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When is a referral not a referral?

Help!!!!!!

Hi Everyone,

I'm having a bit of an issue with a Realtor from Oregon. Story starts about 6 weeks ago. I met this couple at an open house. They told me they sold their home down south about two months ago and were living in an apartment. We spoke for about 1/2 an hour while showing a 1200 sq. ft home. As Realtors do, I asked them if they were working with anyone ( NO) and offered my assistance. The wife left both of their names and their address no phone number. Upon leaving they grabbed one of my cards I asked if they left their number and they said no they had mine and they would contact me. This was Saturday. Monday when I got to the office I drew up some listings based on the descriptions that they gave me of what they wanted. I then went over to their apartment and hand delivered them directly to the wife. The husband was running an errand. I told the misses that with no hurry that they could run through the listings and if they saw anything that sparked their interest to give me a call I would be more than happy to show them the property. I went home that evening and logged in my database to touch base with them in three weeks whether they call me or not just to see if they found anything yet. So happens the Realtor in question called me 2 days before I was scheduled to stop by again. This person said do you remember the ( name of clients ) I responded well yeah I have their addy and stopped by with some listings. She now says well I would like to refer you to them for a 25% fee. I said give me your info she denied she wanted mine. I gave her mine and waited for her e-mail that never came. Now I contacted the clients and proceeded to set an appt. to start showing homes. Within 7 days we were then out then into an accepted offer. Each day I tried to touch base with this person to get their info, and called each time we signed a paper. Now that she knows that we are in escrow she has been bugging me several times a day to make sure she is getting her referral fee. Personally to me this does not sound anything like a referral. I really thought a referral was when a Realtor from where ever locates another Realtor to service the client that they have picked up that is moving from one area to another or the agent has too much on their plate then they introduce the ( agent /other Realtors clients) Not just call someone they already have had encounters with because the feel entitled to a portion of a relative through marriages' fees for another to do all the work in securing a home for That to me sounds like being a leach and not a referral.

What do you think, I am fairly new in this bus. and could use the advice. And my thoughts might be filled with bitterness causing my judgement to be askew.

Thanks for the advice,

Kevin Scott Usher

Posted by Kevin Usher on 10/05/2007 11:41 AM

Comments (9)

advice, referral, real estate, homes, usher, help

9 Comments on When is a referral not a referral?

OCT

2007

Kevin

You may be new in the biz but you are correct in my experience and opinion. You met these clients while they were out on their own. You did the right thing and asked if they were working with anyone. If they had any loyalty to that agent, they could have chosen to say yes and then have her contact you and work together.

You met them, followed through, and are doing the work entailed in completing a purchase.

Check with your broker to confirm that we are correct. I know my broker would agree with me and back me up.

Good luck and good job!

This person is a LEECH. A referral is NEW business that is introduced to you by the real estate agent. Business that you HAD NEVER HAD CONTACT WITH. You already met these folks.

This part of your post is key: "This person said do you remember the ( name of clients ) I responded well yeah I have their addy and stopped by with some listings. She now says well I would like to refer you to them for a 25% fee."

HELLO? Too LATE FOR REFERRAL! You've already met them through YOUR OWN EFFORTS and no thanks to her!

Tell her to bug off!

way to go

Kevin a referral is before you meet the clients not after you are showing them homes.

You are right! Not a referral. GREEDY

Kevin - You might want to ask "your" clients if they have any relationship with this woman. It is always better to have all the facts. You did continue to call her and update her on the progress you were making. She may have assumed that you were operating under the assumption that they were referred by her. If she were not part of the transaction, it would be a violation of your clients privacy to reveal every step of the transaction to a non-involved agent.

It does not sound like all the pieces fit. This is a difficult industry. You never know when a person that you want to butt heads with will be on the other side of a transaction.

You may find that your clients have been under the impression that the other agent is involved in a referral kind of way.

I would take time today to tie up the loose ends and get the complete story.

Interesting story, I am coming at a situation similar to what you have discribed but as the referer. I called a agent in my old home town, to refer my mother, to a woman my mother has known off and on for 10 years or so, more off than on. My mother suggested this womans name dispite my having heard some very sketchy things about her. Anyway I call here and say, my mother would like to sell her home, would you be interested in working with her if so I would be willing to refer her. This agent instead of being happy to be thought of is outraged, and acts as if she is entitled to get the business dispite the fact that she does not market to my mother at all, and on top of that, my mother knows 3 other Realtors who could have just as easily gotten the business. This agent is by know means hungery ether, I would say she could be retired right now if she wanted to be.

This subject is very near to me especially coming from a new REALTOR. Unless the clients have been sent to you by another agent, they are YOUR CLIENTS and NO REFERRAL FEE SHOULD BE ASSUMED OR PAID.

Have you asked this agent why she feels she should get a referral fee? That one question could cut to the quick. Entitlement does not equal a referral situation. These Realtors who assume otherwise need to get over themselves. RIGHT = RIGHT. Stand your ground. In this business you'll be mowed over at every possible turn unless you do.

Feel free to call me on my cell phone if you are confused.

OCT

2007

Thank you everyone for the quick response to my quandry. The situation was addressed by my sales manager we even offered to pay a reduced fee of 15% because of the other agents confusion. That was flatly refused. When she spoke to my manager she also Lied several times by stating that I was never at their home other than to drop some listings off on the doorstep. (Lie) She also said I only showed them three homes (LIE) we looked @ 7 and I take that as a compliment in finding what MY clients are looking for in a timely fashion by previewing the homes myself first and not wasting their time with looking at places that they will have no interest in. On the relation side She is the mother of my clients daughter-in-law. who lives in Oregon I sell in CA. AAnd the clients have not seen her face to face in more than 7 years while they were living in Southern CA. Thanks again, I know I'm right, but I am paying the fee I'm sure that my honesty will pay off ten fold in the years to come in my career, Which in turn puts this problem on their head. I chalk this up to my first lesson in ethics. and I love to learn from other folks mistakes.

Have an Awesome and productive day everyone and remember aside from the money we do this to have fun helping people

Kevin Scott Usher

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