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Out of town referrals......

By
Real Estate Agent with NextHome Navigator 545112-AB00

Just a quick thought.....

If you have a client moving out of your service area, should you refer them to someone you don't know?  Is that really a referral? 

 

I was recently hired by a family who was moving out of state.  They met an agent who began to help them find a home in their new town.  I must confess that I don't know the scientific manner in which the agent chose who this family should work with but suffice it to say he helped them locate a realtor to list and sell their current home. (And presumably pay him a referral when the home sold)

Our firm received a call after they had worked with the referred party for about 5 months.  They were frustrated with the lack of showings (1 in 5 months) and the lack of communication from their agent.  We now have the property on the market.

Amazingly enough, the agent helping them purchase a home where they are being relocated sent us a request for a referral fee when we sell the home.  Just for clarification, the reason the family called us is because they had a friend whom we recently helped.  She sang our praises and so we were called and consequently hired.  I told the agent that we would gladly pay him a fee if he referred the family to us but because he didn't refer the family to us, we didn't owe him a fee.

He became intense (to put it mildly) and eventually hung up. 

Don't you have a responsibility to the family you are working with?  How do you know that the family is going to get 'top notch' service if you find them a realtor by going through the yellow pages?  Couldn't the family do that on their own?  My opinion is that this type of referral isn't really a referral at all.  How can you recommend someone you don't have a relationship with or that you don't even know?

I'd love to hear your feedback.......

.....should I have paid a referral here?

 

Comments (6)

Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

If there was not real referral I would not pay one.  I would only make referrals to people  I know.

Mar 05, 2009 03:54 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Doesn't seem like a referral fee appropriate. I contact the distant agent before the client to make sure there is a good fit (personality, and agent has time to commit to client's time frames). This also the time to confirm referral fee and documentation on our agreement for fee. This all happens before the client talks to the distant agent. If the agent doesn't want to agree, I find a willing agent.

If the client talks to the distant agent first, I don't think a referral fee is due.

Mar 05, 2009 04:16 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

If I understand this right the other agent was 'trying to parachute in!' Correct me if I am wrong but... You already had the seller listed when the other agent requested a future referral fee.  If that is the case no referral is owed.

Mar 05, 2009 04:19 PM
Rod Moser
NextHome Navigator - South Jordan, UT

Jim,  that is exactly the case.  Not only that but she was referred by a client not the agent. 

Mar 05, 2009 04:35 PM
Greg Miller
Ruoff Home Mortgage - Sarasota, FL
Florida Home Loans - Conventional,FHA,USDA,VA

Rod- I would refer to an agent that I did not know, but first I would do some investigating. I would find some things out about the agent and agency. I would not pull a name off the Internet or out of a hat. I feel like if the person I was referring didn't know an agent, I could help them find a more competent agent than they could on their own.

Secondly a referral fee should be handled like "rent" in advance and not arrears!!

Mar 06, 2009 12:10 PM
Anonymous
Beth

I think you are right on!

Mar 06, 2009 02:01 PM
#7