Is it worth it to become a Referral Agent?

5 Replies

Been sending out letters and got my first call.  Deal doesn't work out for me, but referred them on to my agent. Considering getting my license so that I can refer business to an agent and actually make some money doing so. 

Anybody doing this? Is it worth it to get the Virginia license? How long would it take to get licensed? How much does it cost to keep license?  And most importantly, how much would I make for each referral that closes?

I'm focusing on the Roanoke area, FWIW.

TIA! 

Follow-up:  If I were to get my license (for referral purposes only), how would it affect me purchasing directly from a seller? Would there now be commissions/fees because I'm an agent?

25% is pretty standard, although along with commissions there is no official standard. That's pretty solid as side income if you're able to get enough referrals. It's a nice side income for active full time agents (like me). I am not 100% sure about getting commission for representing yourself in buying, but definitely be careful doing that. A lot of agents I know use another agent for their deals to keep themselves from being emotional about it.

Can't speak to costs of getting licensed in VA because I'm in VT, but if you are an investor, the classes might be worthwhile anyways because you'll learn a lot that'll help you with that process regardless. I'd say go for it, just don't bother being an NAR member because that's the most expensive fee tbh...

Originally posted by @Martha Nowlan :

25% is pretty standard, although along with commissions there is no official standard. That's pretty solid as side income if you're able to get enough referrals. It's a nice side income for active full time agents (like me). I am not 100% sure about getting commission for representing yourself in buying, but definitely be careful doing that. A lot of agents I know use another agent for their deals to keep themselves from being emotional about it.

Can't speak to costs of getting licensed in VA because I'm in VT, but if you are an investor, the classes might be worthwhile anyways because you'll learn a lot that'll help you with that process regardless. I'd say go for it, just don't bother being an NAR member because that's the most expensive fee tbh...

Thank you, Martha!

This helps a lot. 

The part about commissions while representing myself... without a license, I can directly work with the buyer through an attorney & title company w/o any agent commissions - keeping my buying price lower. If I had a license, does that change anything? Would any commissions be required since I'd also be a licensed "agent" working for a broker.

@Account Closed that's probably too local for me to say. In Vermont, the seller pays all of the commission and it doesn't matter if the buyer is represented or not, the listing agent just takes the whole commission if there's no other agent. So that probably will depend on the customs in VA