Home > Blogs > Matthew DeFede > Homes & Real Estate For Sale in Nutley New Jersey

Ok Guys, lets talk Ethics for a moment

By Matthew DeFede

Real Estate Broker/Owner with Realty Executives Elite Homes

September 22, 2008 08:14 AM

How many times have you run into this situation....

You meet a potential buyer at an open house, they come in sign the sign up sheet ask you to send them listings. You send them some available homes, take them out for the next couple of weekends even get them pre-approved for a mortgage and help them get all geared up to buy a home. So they finally find a home that they like, they ask you to put together an offer you agree. Then about an hour before your ready to submit the offer you get a phone call from an agent who says they are related to the buyer and that they would like a referral!!! Can you believe this, what would you do in that situation?

a. Give her the referral

b. Tell her to go pound salt

Matt :)

Comments(7)

Comment

Show All Comments

Sort:

Eric Reid

Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

Hmmm... I would say ... thanks for the call .. when I meet with the "client" in an hour I will have discuss this with them... and I would .. tell them the "referral fee" and ask them how they would like to pay for it.

Sep 22, 2008 08:26 AM

Bob Buchanan

First Assured Mortgage - Lawrence, KS

First comment is spot on,,,,,how they would like to handle the cost of the referral is the way to go.. Eric, you hit the nail on the head.

Sep 22, 2008 08:35 AM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Matt, I simply say I offer referral fees to people who send me clients, or customers prior to actually meeting them ( ones I meet because of my own efforts would not count as a referral). I would be glad to offer you a fee the next time you send me the client info.. for someone I haven't had contact with yet.

Sep 22, 2008 08:36 AM

Brian Lee Burke

Kenna Real Estate - Lone Tree, CO

Broker & Advising Expert-Kenna Luxury Real Estate

This happened to us too, but it was after the offer was submitted, actually it was a week before closing. Oh, my grandmother in Texas (or some other state) is a Realtor, can you send her a referral fee!!! What? I like the comments above. ~Rita

Sep 22, 2008 08:46 AM

Tony & Darcy Cannon

Aubrey and Associates Realty - Layton, UT

The C Team

Matthew, I agree with what everyone else has said. I would agree to pay a referral fee if I know about it from the outset, otherwise, I think that the family member should have come forward sooner!

Sep 22, 2008 08:56 AM

Richard Iarossi

Coldwell Banker Residential Brokerage - Crofton, MD

Crofton MD Real Estate, Annapolis MD Real Estate

Matt, I used to be from NJ. Bellville isn't too far from the Passaic River...oh wait, this is a public post, never mind.

If she's a NJ agent I would offer a nominal fee. No more than 10%. Out of state, the salt option works for me. Or, if you win the offer let her collect after settlement by proving that she had a legitimate referral.

Sep 22, 2008 08:59 AM

Kathy Fey

Fey & Associates - Dacula, GA

Yes, we have all been in that situation and yes, it is uncomfortable. I have told the "referring agent" that I am running late and will call them back. At that point I contact MY clients and ask them about this agent. I can not tell you how many times clients don't know them (but the agent got their name through a friend of a friend)or meet them briefly. If there is no indication that the "referring agent" truly deserves a referral fee, AFTER the transaction is complete I would call them and explain the situation and why no fee is being paid to them.

Sep 22, 2008 10:27 AM

Ok Guys, lets talk Ethics for a moment

Comments(7)

Matthew DeFede

Service Areas

Real Estate Resources

Recent Posts

Additional Information