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REFERRAL AGENTS?

By
Real Estate Agent with Coldwell Banker Residential

What exactly is a referral agent?

It is a new term to me.  I have been a Realtor for three years, but I have never heard of a "referral agent" before.  That is, until a few months ago...

Have I missed something?

I received a call the other day from one of these "agents".

"Hi Ken.  I am still with Keller Williams.  But I am in their referral division."

Huh?  I didn't know we had a "referral division".

Does this mean they are no longer practicing real estate?  That they will now be referring business to active agents?  To agents like me?

Awesome.

I could not be more excited about business in 2009.

Ken

A Realtor you can trust. 

 

Comments (19)

Rebecca Schrader
Competitive Insurance of Dundee - Dundee, FL

Ken,

You gotta love those phone calls! Here's to a wonderful 2009!!!

Dec 08, 2008 10:50 AM
Marilyn Katz
Berkshire Hathaway HomeServices New England Properties - Westport, CT
ABR, e-PRO - WestportCTProperties.com

Ken - In the current down real estate market, we are likely to see more "referral agents."  These agents are no longer active, but continue to maintain their license.  Many were not making money in RE and could not or did not want to continue paying high RE member fees, such as board dues.  They may have gone on to salaried positions, but since they are still licensed agents, they can legally receive referral fees.

Dec 08, 2008 11:01 AM
Robert Havana
Park and Protect- Alberta Real Estate License Parking - Calgary, AB
Alberta Real Estate License Parking

We have a company in our province/state that is basically a place for inactive agents to park their license, but while you are parked there you can still refer out all your past and new clients and they will pay you 100% of the referral fee you collect.  The cost for parking your license with them is $1/day.   It is a good way to retire out of the business I guess.

Dec 08, 2008 11:03 AM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Rebecca, Marilyn, and Robert.  Thanks for stopping by.

Seemed strange.  Even an agent here on AR who I assume was doing well became one.

Next year will be too good to leave!

Thanks again,

Ken

Dec 08, 2008 11:07 AM
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

I have also received calls from referral agents. We have a referral department in my company, for people who only want to refer buyers and sellers to active agents to get a referral fee. Also, some real estate companies send part time agents to the referral department.

Dec 08, 2008 11:17 AM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi JL.  Thanks for stopping by.

Interesting.  I was unaware that that could be an entire business...

Thanks also for subscribing.

Who will be lucky 100?

Ken

Dec 08, 2008 11:21 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Ken, I understand the concept but I have not had much use for it in the past. We do accept referrals and if I get a client in a part of Louisiana that I do not cover I will find an agent to work the business and still make a little money. Looking forward to a great 2009, phone are starting to ring again.

Dec 08, 2008 11:22 AM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Frank.  These agents do it full time.  Confuses me.

I am going to the Bears game on Thursday.  Go Bears.

Ken

Dec 08, 2008 11:59 AM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Erica.  I think it is an agent that semi retires.  Then when friends call, they hook them up with another agent.

Seems strange.

Thanks for reading,

Ken

Dec 08, 2008 12:30 PM
Robert Schwabe
Herron Real Estate - Orange Park, FL
Orange Park Real Estate

Ken - I have not received any callsfrom a referral division yet. I do get calls all the time for website page placement on Google.

Dec 08, 2008 12:48 PM
Anonymous
Not Yet Licensed

Does this mean they are no longer practicing real estate?  That they will now be referring business to active agents?  To agents like me?

Good evening Ken,

It's possible.  The way I see it, this is one more way of thinking outside the box.  I know of an agent who earns more from her referrals than the average agent makes annually.  She gets a huge number of internet leads and refers most of them out.  Then, on top of her substantial referral income, she also sells a few houses each year.  That's the beauty of real estate.  You can build your business any way you want.

Cordially,

Bruce

Dec 08, 2008 01:23 PM
#12
Steve Shatsky
Dallas, TX

Hi Ken...  Does KW have a formal "Referral Division"???  I have been a KW agent for almost 5 years now and this is the first that I have heard of it.

Dec 08, 2008 02:23 PM
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

It is happening alot lately with agents who are excellent in marketing in the internet world.  Most of the time they steal or borrow other agent's listings to gain calls.  Lower price range agent are flocking on Craig's list and then referring one of "their" agents to the client.  Pretty good idea....

Dec 08, 2008 04:41 PM
Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best

I say if the referral fee is agreeable then why not?  I give referrals when I need to but am not considered a 'referral' agent. 

Dec 08, 2008 04:44 PM
Cherimie Crane
Cherimie Crane & Associates - Beaufort, SC

Phone calls are always good, well almost always!! Congrats and keep up the hardwork.

Dec 08, 2008 08:37 PM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Cherimie, Melody, Tim, Steve, Bruce and Robert.  Thanks for reading.

I guess it is thinking out of the box.  It seems a thinning of the Realtor herd, for sure.

Always good for those of us still standing.

Steve, I don't know?

Just another way to do business, I guess.

Thanks everyone!

Ken

 

Dec 08, 2008 11:16 PM
Harold "Hal" Place
A1 Connection Realty, Inc. - Sun City Center, FL

Morning Ken,

Our Broker has two Companies, one for active agents and one for inactive agents. The inactive agents have their license held by the Referral Division of the brokerage. These agents don't maintain membership in the various organizations requiring dues, such as MLS. These agents are paid a fee for referring clients interested in either listing or buying a property.

Dec 09, 2008 12:48 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

I had no idea that there were agents who make a living solely from referral fees.

Oct 10, 2010 03:55 PM