Would you trust your agent to refer an agent in a different market?

Question

I just attended a webinar for an agent referral website.  Apparently, agents who know buyers looking for properties in other markets can post these leads to the website and other agents can bid to win that referral, usually for a 25% fee of the commission if the buyer uses that agent.  I am curious if anyone has found an agent this way.  When I invested out-of-state I did not even know this was an option.

Brandon Vukelich · Answer

I make introductions to other agents across the US a few times a year. If I don't already have a relationship, I search for the city in a national agent FB group (i.e. Tampa), then read through the top 2-3 names referred in a previous post. (There is usually always a previous post searching for an agent connection in just about any market.) Then I contact the top 2-3 mentioned by others to pre-vet them for my potential referral. I ask them about their market knowledge, experience, etc. I would never just pick a random name and refer them, hoping for a blind 25% referral fee.

Also as a licensed agent, if you're a buyer in another state, you could make an unrepresented offer and ask the listing broker to send you a 25-30% referral for yourself. Use it on the down payment towards your acquisition. Just an idea. I did that once on a purchase in another state.

Jeff Roth · Answer

Hi Doug from Miami Florida-

Great question! You asked if you would trust your agent to refer you to another agent in a different market or out-of-state and if the agents pay referral fees to each other when doing this.

Yes, this does happen as people relocate to deferent towns or states and agents want to refer their clients to a local agent they trust will take care of their clients.

In fact, one of our best referral partners sends us doctors from around the country who want to invest in real estate in Michigan and we pay a referral fee for that.

Also pretty common for attorneys to have similar arrangements with each other.

To Your Success!