Referral Fees for Real Estate Agents

[Chris Lawrence]

Hi,

I’m a real estate investor in Rochester, NY. Wondering if there is a market standard or average referral fee for referring deals that it makes the most sense to list with a realtor? Through my marketing- I have been referring off deals that don’t meet my flip or buy and hold criteria. I’ve heard the industry standard referral fee is 25% of the listing agents commission. Any insight is greatly appreciated.

Thanks!

Chris

[Martha Nowlan]

@Chris Lawrence to reiterate what @Brian D. Beatty said, you will need to have a real estate license in order to receive a referral fee from an agent. If you aren't licensed, it'll depend on the state if the agent is allowed to give you anything, but according to the Realtor code of ethics, a Realtor cannot give you money for giving them business. So I hope you have your license because that could be very fruitful for you! 25% is the "standard" but I think it's silly that we think of it that way, the same way there isn't really supposed to be a standard for commission, I think referral fees should vary depending on the strength of the relationship you have and how warm of a handoff it is. That's my philosophy at least!