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Paid Referrals

By Tony & Darcy Cannon

Real Estate Agent with Aubrey and Associates Realty

November 06, 2007 10:01 AM

Darcy got a call from a referral company out of Montana that had a blistering hot referral for us. It was a cash buyer with a short close, looking to relocate to our area as soon as possible. It sounded great, then the kicker, they only wanted $495 to pass along the referral. We don't have that kind of money for a bird in the bush so to speak.

Has anyone dealt with any company like this? How reputable are they? We have and love to work with several referral companies that we pay out of our commission. This way if something isn't quite right, we don't pay unless they actually buy or sell. This company may well be a very reputable company with a large percentage of referrals to closings, but we were not familiar with them. Please let us know if any of you have had experience with a company like this one. Thanks in advance!

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Steve Glose

Keller Williams Legacy - Orlando, FL

TRC, CIPS, 407-616-7286, Orlando Real Estate, Orla

I would be very careful of any company that wants referral money up front. To me it sounds to good to be true. Besides, as Realtors we should not be paying these referral company's for doing what we should be doing ourselves.

Nov 06, 2007 10:15 AM

Kevin McGrath

Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania - Fredericksburg, VA

Long & Foster Real Estate Companies

My dream - all realtors stop using those referral companies. I personally think they are all a rip off. I'm tired of every time I turn around someone else trying to put their hand in my pocket.

Nov 06, 2007 10:17 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

Can you spell SCAM. I get these calls several a month. I tell them I offer 25% referral fee to brokers at closing and they never want that. That is a lot more than $595 for a home in Hawaii. They never take me up on it.

Nov 06, 2007 10:24 AM

Elizabeth Nieves

The Elizabeth Nieves Realty Group - Durham, NC

Bilingual Raleigh - Durham North Carolina Real Estate Team

Be careful!! (I know I'm not the first to say it...but I'm the first woman!) There are a lot of unethical predators 'out there'. Blessings!

Nov 06, 2007 10:53 AM

Stella Barbour

NoVa Brokers LLC - Vienna, VA

Principal Broker, Serving Virginia and Maryland

It sounds like a scam to me. I would stay away from companies like that. When it sounds too good to be true, it is.

Nov 06, 2007 11:28 AM

Rosario Lewis

DDR Realty - Newburgh, NY

GRI, SRES - DDR Realty - Orange County, NY

I get lot of calls and e-mails making offers like the one you received. I ignore them all.

Nov 06, 2007 11:48 AM

Tony & Darcy Cannon

Aubrey and Associates Realty - Layton, UT

The C Team

Thanks again everyone, I kind of felt that it was a scam. I agree, I have no problem paying a referral to a broker of 25% once it closes. We have just had several hot referrals that decided for one reason or another not to buy in our area, so we were already pretty leary of paying this out.

Nov 06, 2007 03:46 PM

Lanre-"THE REAL ESTATE FARMER" Folayan

Samson Properties - Bowie, MD

I don't make promises.I deliver results.SOLD HOMES

I agree with everybody you commented on this post. I got a call from someone in Idaho like two weeks ago telling me that they have a referral for me for a person who wants to buy in Fort Washington,MD. I didn't bother calling them back and they haven't called me either. Too many scams out there. They suck.

Nov 06, 2007 04:27 PM

Chris Pollinger

Berman & Pollinger, LLC. - San Diego, CA

Consulting for Luxury Teams and Brokerages

When working with referrals - go with a pay for performance type of fee. Give a percentage, anyone who is looking to do anything else is passing along junk leads at best...

Nov 07, 2007 03:22 AM

Paid Referrals

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