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meridian1
395 Posts |
 Posted - 08/20/2008 : 12:39:08 PM
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| One of my friend who is a broker (also holds a realtor license)says that he can refer a client to a real estate agent and get 25% commission from the realtor. Is this possible in FL? Is this legal? Can a broker refer a client to a realtor and pocket a part of the commissions as a referral fee??? |
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Managing Prime
2960 Posts |
Posted - 08/20/2008 : 12:40:48 PM
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| Yeah. It common and legal. |
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meridian1
395 Posts |
Posted - 08/20/2008 : 12:44:34 PM
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| Thanks for the info MP. |
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 1:15:24 PM
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| He's a licensed re agent referring a client to another licensed re agent and collecting a referral fee? Sure that's ok and legal ... and I have been doing it for years. The fact that he is also an originator is irrelevant. |
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Captain Mortgage
2559 Posts |
Posted - 08/20/2008 : 1:17:56 PM
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| I thought that it could only be between 2 brokers. |
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 1:22:52 PM
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The fees are paid to the agents THROUGH their brokers. In other words, one broker pays the other broker who pays the agent. Agents are never paid directly by clients. Normal process.
quote:
Originally posted by Captain Mortgage
I thought that it could only be between 2 brokers.
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meridian1
395 Posts |
Posted - 08/20/2008 : 1:30:14 PM
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| HOw much does a buyers' agent make? 3% or 6%? |
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ritabradley01
4945 Posts |
Posted - 08/20/2008 : 1:33:40 PM
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| or less. |
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 1:38:31 PM
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OK ... looks like a little agent comp 101 is in order.
Lets say a listing pays 3% to listing broker and 3% to the buyer's broker. Note that the listing broker could also be the buyer's broker and therefore collect the full 6% fee.
The agent's split depends on their individual arrangement with their broker. If it is 70%, the agent collects 70% of the 3% (or 70% of the 6%).
When I refer a buyer or seller to a broker, I require a minimum 30% referral fee ... that is, 30% of the 3%. The rest is then split between the broker and the agent per their agrreement.
Makes sense?
quote:
Originally posted by meridian1
HOw much does a buyers' agent make? 3% or 6%?
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meridian1
395 Posts |
Posted - 08/20/2008 : 1:48:40 PM
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| Yo do you know of any reliable realtor in West Palm Beach region in FL who is ok with paying a referral fee for sending clients their way. |
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 2:06:51 PM
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I do not have any personal relationships with any agents in West Palm Beach at the moment but one just moved to St Augustine and she hung her license in our office. I'd be happy to talk to her tomorrow and get you a personal referral if you wish. If you have a referral for the Jacksonville area, I'd be happy to take care of them and pay a 30% referral fee to you (assuming of course that you are a FL licensed re agent). Let me know.
quote:
Originally posted by meridian1
Yo do you know of any reliable realtor in West Palm Beach region in FL who is ok with paying a referral fee for sending clients their way.
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meridian1
395 Posts |
Posted - 08/20/2008 : 2:11:14 PM
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| Thanks man. My email is ravi.inuva@gmail.com. Ask her to email me if she is interested. If i get any Jacksonville client i will sure send it your way. And i don't hold a realtor license. Its for my broker who holds a license. I am his processor. |
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 2:20:21 PM
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OK ... I'll talk to her and get back to you.
quote:
Originally posted by meridian1
Thanks man. My email is ravi.inuva@gmail.com. Ask her to email me if she is interested. If i get any Jacksonville client i will sure send it your way. And i don't hold a realtor license. Its for my broker who holds a license. I am his processor.
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 2:33:53 PM
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This person has either a RE BROKER license or a RE SALESPERSON license which is parked with a broker. You are right in that the transaction is really between two LICENSED BROKERS ... who in turn pays the individual agents.
quote:
Originally posted by Captain Mortgage
I thought that it could only be between 2 brokers.
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datalyst
821 Posts |
Posted - 08/20/2008 : 2:55:12 PM
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quote:
Originally posted by CoolMtgGuy
OK ... looks like a little agent comp 101 is in order.
Lets say a listing pays 3% to listing broker and 3% to the buyer's broker. Note that the listing broker could also be the buyer's broker and therefore collect the full 6% fee.
The agent's split depends on their individual arrangement with their broker. If it is 70%, the agent collects 70% of the 3% (or 70% of the 6%).
When I refer a buyer or seller to a broker, I require a minimum 30% referral fee ... that is, 30% of the 3%. The rest is then split between the broker and the agent per their agrreement.
Makes sense?
CoolMtgGuy,
That is a pretty good deal. When I was in the RE biz, I referred for 25% of the REA commission - after their firm got a slice.
Say 250K contract
List & Buyer REA's split 6% 50/50 = $7,500 each
Your way:
30% of $7,500 = $2,250 for the referral
My old way:
REA's commission, say 70%, of 3% = $5,250
My 25% of REA's 70% = $1,312.50 for the referral
Times have changed. I feel somewhat...cheap. I wonder if I could call all those folks and ask for a check based on your numbers, LOL!
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CoolMtgGuy
9067 Posts |
Posted - 08/20/2008 : 7:30:15 PM
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TIP - Remember that the REFERRING agent creates the referral agreement. If any broker or agent refuses to accept your terms, just move on to the next one. Find an independent broker if one of the National franchised shops won't play ball.
Trust me. I know agents receiving 40% referral fee. It all depends on the quality of the referred party. Many times I referred buyers who had already been pre-approved by me ... so that is more than just a name and number.
By the way, I was just perusing through a few real estate magazines for Northeast Florida and saw several ads for agents offering various rebates to buyers ... from a $1,000 fixed rebate to 60% of whatever buyer commission is collected. There are other agents offering $500 upfront flat fee for listing on the MLS and the 3% to the buyer's agent at closing. There are no rules so just be creative and drive a hard bargain.
quote:
Originally posted by datalyst
quote:
Originally posted by CoolMtgGuy
OK ... looks like a little agent comp 101 is in order.
Lets say a listing pays 3% to listing broker and 3% to the buyer's broker. Note that the listing broker could also be the buyer's broker and therefore collect the full 6% fee.
The agent's split depends on their individual arrangement with their broker. If it is 70%, the agent collects 70% of the 3% (or 70% of the 6%).
When I refer a buyer or seller to a broker, I require a minimum 30% referral fee ... that is, 30% of the 3%. The rest is then split between the broker and the agent per their agrreement.
Makes sense?
CoolMtgGuy,
That is a pretty good deal. When I was in the RE biz, I referred for 25% of the REA commission - after their firm got a slice.
Say 250K contract
List & Buyer REA's split 6% 50/50 = $7,500 each
Your way:
30% of $7,500 = $2,250 for the referral
My old way:
REA's commission, say 70%, of 3% = $5,250
My 25% of REA's 70% = $1,312.50 for the referral
Times have changed. I feel somewhat...cheap. I wonder if I could call all those folks and ask for a check based on your numbers, LOL!
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meridian1
395 Posts |
Posted - 08/21/2008 : 10:36:29 AM
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[quote]Originally posted by CoolMtgGuy
OK ... I'll talk to her and get back to you.
[quote]
Hi Yo, did you get an opportunity to speak with the agent you were referring to yesterday?? |
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quasigovy
513 Posts |
Posted - 08/21/2008 : 11:35:59 AM
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| hmmm |
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