Referrals between real estate agents can be a lucrative form of additional revenue for both the sender and the receiver that can give their real estate career a lift. The agent receiving the referral gets a new customer and the referring agent gets a referral fee. But not all agents give referrals the attention it deserves which can create a nightmare for both agents.
As a professional courtesy, the agent receiving a client referral from another Realtor® should make contact with the agent as soon as possible. Not just to thank them for the referral, but to obtain insight into the buyer’s needs that will help them provide the best possible service to the client. It is also good practice to contact the agent and to ensure they will be able to help your client whether they are a buyer or a seller.
Most agent to agent referral nightmares are simply a result of a lack of communication. Communication is essential in the real estate business, so to avoid any miscommunication keep the other agent in the loop regarding the buyer’s status. Keep in mind that while you may be in Chicago, the referring agent is in a distant city. Their only indication of whether or not you are taking care of the client is when you update them on your progress. Keeping the referring Realtor® in the loop will help the agent feel more comfortable referring additional clients to you in the future.
Understand the Buyer’s Needs
Understanding the buyer’s needs is part of a Realtor®s’ job. This may seem like a no-brainer, but there are times when an agent makes contact with the buyer before speaking with the referring agent. While there are times when this can’t be avoided, always attempt to contact the referring agent first to learn the buyer’s requirements. This insight will give you an opportunity to have all of your ducks lined up in a row when you make contact with the buyer. This will save everyone time and the buyer will undoubtedly appreciate the professionalism. This will reflect positively for both agents.
When the Referral Fee is not to be
While agent to agent referral fees are negotiable, it is usually 25 to 30 percent. But not all agents want to give up a portion of their commission for receiving a referral. To avoid any misunderstandings, make sure both agents are on the same page as far as the referral fee is concerned. If an agent receiving a referral doesn’t want to give the agent a referral fee he or she should politely decline the referral.