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Where Do You Draw A Line on Referrals ~ Or NOT

By Kat DeLong

Real Estate Agent with Realty ONE Group Mountain Desert

December 29, 2011 02:24 AM

I had an interesting call the other day from a lady asking about a property she found on the Internet. No, that's not the Referrals or Not interesting part. What was interesting was that she "has/had" an agent, but said he is a part-time Realtor and out-of-town a lot and she thought she should start looking for another salesperson; ME!

First, I suggested she call his office and ask who might be taking care of his business while he is away. Nope, she didn't want to do that. Okay, well, I could help her and any properties he had shown her, if she bought, I'd give him a referral. That would only be fair.

She was kind enough to call her out-of-town Realtor and share with him that she had found someone else and wanted his blessing, I guess. Okay, that's out of the way.

Then I get a call from the Out-of-Town Realtor. "I'd like a referral on anything you sale her." I replied, "I think what would be fair is if I give you a referral on anything you've shown her. Period."

He wasn't happy.

So, my question to you all is (pick 1 or 2):

Pay the Realtor on ANY home you write an offer on?
Pay the Realtor on a home he has shown her and you write up?

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Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Lake Arrowhead, Southern California's Mile High Resort in The San Bernardino Mountains

Dec 29, 2011 02:26 AM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

IF HE had made the call to you and done the introduction - then I'd say YES; however, he left her to her on devices and she FOUND you....he needs to send you a letter on the properties he has shown her if he wants a REFERRAL your REPRESENTATION of her for the purchase of those properties. NUFFsaid!

Dec 29, 2011 02:28 AM

Coral Gundlach

Compass - Arlington, VA

Real Lives. Not Just Real Estate.

Only on the properties he had shown her. The rest are yours. If he wants the business, he needs to come back and work.

Dec 29, 2011 02:32 AM

MaryKay Shumway

The Kellstrom Ray Agency, Inc. (Est. 1948) - Sister Bay, WI

Door County Wisconsin's Real Estate Expert

I'd draw the line here...

Dec 29, 2011 02:32 AM

Bill Reddington

Re/max By The Sea - Destin, FL

Destin Florida Real Estate

Mixed emotions on this one. You handled it the right way I think. The unfortunate part about procuring cause has changed alot lately. It seems whoever writes the contract is the procuring cause. Doesn't matter who showed the property. Now documented that the buyer wanted a new agent.

Dec 29, 2011 02:35 AM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Wallace; That was/is my feeling.

Coral: My thoughts exactly.

MaryKay; Good idea.

Dec 29, 2011 02:35 AM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Bill; Thank you. I "tried" several times to get her to call his office and get a partner to help her... And I am upset that he thinks I should pay him on anything I sell her regardless if he showed it or not.

Dec 29, 2011 02:38 AM

Chandler Real Estate Liz Harris, MBA

Liz Harris Realty - Chandler, AZ

#ChandlerRealEstateAgent

Number 2 but if you find it is going to be difficult getting her under contract (for whatever reason), then I would draw the line...

Dec 29, 2011 02:39 AM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Liz; I think that is right, also. At least I feel as you do.

Dec 29, 2011 04:15 AM

Donne Knudsen

Los Angeles & Ventura Counties in CA - Simi Valley, CA

CalState Realty Services

Kat - My first question is, "did she sign a BBA with the other Realtor/agent"? If not, I would only pay him the referral on what he showed and tell him you're being kind and fair giving him that because he has no binding contract with her. If he does have a signed BBA, it's kind of a whole different story then, isn't it?

Dec 29, 2011 04:37 AM

Dick Greenberg

New Paradigm Partners LLC - Fort Collins, CO

Northern Colorado Residential Real Estate

Hi Kat - Given that he took no action to provide you with the business, you certainly don't owe him a referral on anything you might do. And I'm not sure that you even owe him one on stuff he showed her - if you also have to show those homes, pull comps, assist in obtaining financing, and all the other things we do, he certainly won't have any procuring cause case, so it comes down to what feels right to you, and I've seen these go either way and be correct.

Dec 29, 2011 04:38 AM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Donne; Nope, no BBA. I asked that, too. Just sayin'. :-)

Dick; Not to mention my time and gasoline... Thanks, Dick.

Dec 29, 2011 04:41 AM

Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

Has he shown her anything? Is he will to give her over to you completly ...if so I would pay a referral fee to him.

Dec 30, 2011 11:57 AM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Hi Monika; Yes and Yes. And, I have signed a referral agreement to pay him... but still feel it isn't 100% fair (she called me and I tried to get her to contact his office and ask for the person who helps in his absence). I know why he gave her over to me.... She is high maintenance. ;-)

Dec 30, 2011 01:26 PM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

I would pay the referral fee on any property he showed her that she buys with you. It's tough because he didn't refer her to you

Jan 02, 2012 02:32 AM

Hector Reyes

Hector And Associates - Adelanto, CA

Southern California

Pay the Realtor on a home he has shown her, I think is fair!

Jan 03, 2012 07:51 PM

Kat DeLong

Realty ONE Group Mountain Desert - Prescott, AZ

REALTOR

Hector; As it turns out, I am paying the guy for anything I write up. Leaving a bad taste in my mouth, but I'l doing it. I figure Karma will pay him a visit sometime...

Jan 04, 2012 02:39 AM

Kim Sellers

Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA

Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow

Well Kat, that is a sticking one... However, I think the lack of his interest in his client (she called you) and then expecting that you just roll over is pretty well... ballsy. But, you are being more than fair. Who knows, your karma will pay you back when this new client refers her friends to you with no middle man. Have a good one.

Jan 12, 2012 08:42 AM