Referrals and Taking Care of Business
From time to time I get agents asking me how much of a referral they should be giving to another agents under a variety of circumstances. I decided it was time to make this the topic of yesterday’s morning meeting. There is no magic answer here as every situation is different, so I put to the group a few scenarios and asked them what they thought.
You are an agent working with a client for the last year. You have shown them 25 houses. You decide that they are probably never going to buy so you decide to take the month of August off. You ask your desk neighbor to answer your calls. Sure enough, your only clients see a house on mls and call your desk mate who types a deal and gets the deal done. Does the agent that you referred the buyer to deserve 25% for the quick no fuss deal, or 50% for getting the clients to paper, or maybe 75% because the deal got really complicated near the end and the agent worked for a solid week to make it happen.
How about this one; You have a hot new listing, but before the open house a family member gets sick and you have to leave town. You hand the listing off to someone in the office. They end up negotiating a deal with another agent. You have done all the pre-market stuff (pictures, brochures, floor plans, ads, etc). What is a good referral fee and would it be different if the agent double ended it because someone called through mls.ca? and what if they double ended it through a client that they met at the open house? Are you getting sick of ‘what ifs’ ? Here is something else to think about. How many generations do the referrals continue? Does the buyer have a house that needs to get sold? What if that agent picked up another buyer at that open house?