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I have a client (not real estate client, client I do PR for)...she asked me to help find her a house (spending 7 figures). Because she trusts me so much, she had me do all the backwork, ie finding a realtor, reviewing properties etc. We decided on a realtor that we both really like. We are looking at the homes we chose from their listings next week.
Is it appropriate to ask for a "finder's fee/referral fee" from the real estate agent for bringing them my client and the sale? If so, what % is the industry norm?
As an FYI the real estate company is based in Chicago, they are using a local realtor here in LA to show the properties.
I have a client (not real estate client, client I do PR for)...she asked me to help find her a house (spending 7 figures). Because she trusts me so much, she had me do all the backwork, ie finding a realtor, reviewing properties etc. We decided on a realtor that we both really like. We are looking at the homes we chose from their listings next week.
Is it appropriate to ask for a "finder's fee/referral fee" from the real estate agent for bringing them my client and the sale? If so, what % is the industry norm?
As an FYI the real estate company is based in Chicago, they are using a local realtor here in LA to show the properties.
I'm not licensed to practice real estate at all. I was just asking if it is an industry norm or acceptable to receive or request a finder's fee for bringing the realtor my client who is going to purchase a 7 figure home from them.
If someone brought me a client who signed a 7 figure contract with me, I would be more than happy to give them a finder's fee/referral fee. But I am not in the real estate industry, I am in the entertainment industry that's why I'm asking. Upon introduction, I explained to them that my client was looking for a home and that I was representing them in this search and would be working with them throughout the process.
Sorry, I just checked out other threads and it seems like it is legal in California, but not in other states. Out of curiousity, are there any other states where this is legal besides California?
.“A FINDER’S FEE is compensation paid for bringing two parties together, such as the introduction of a prospective buyer and a seller. The finder does not need to be licensed and, of course, can perform no services for which a license is required.” A quote from “CALIFORNIA REAL ESTATE LAW”, Huber and Tyler, J.D., 6th edition (2007), Educational Textbook Co., Inc. (Covina, CA)
via poster RAHEF
.“A FINDER’S FEE is compensation paid for bringing two parties together, such as the introduction of a prospective buyer and a seller. The finder does not need to be licensed and, of course, can perform no services for which a license is required.” A quote from “CALIFORNIA REAL ESTATE LAW”, Huber and Tyler, J.D., 6th edition (2007), Educational Textbook Co., Inc. (Covina, CA)
via poster RAHEF
You know I was thinking about this and I don't think lead generation companies are licensed who sell leads to real estate agents from their websites. I could be wrong about that though. So you are kind of acting like a lead generation company.
The only problem I see is that when a referral fee is requested it is negotiated up front. Not after parties have been introduced.
.“A FINDER’S FEE is compensation paid for bringing two parties together, such as the introduction of a prospective buyer and a seller. The finder does not need to be licensed and, of course, can perform no services for which a license is required.” A quote from “CALIFORNIA REAL ESTATE LAW”, Huber and Tyler, J.D., 6th edition (2007), Educational Textbook Co., Inc. (Covina, CA)
via poster RAHEF
I'll add to that a bit...that "finder's fee" should to be paid out of the escrow transaction (path of least resistance). I would ask for a 25% (either of the gross or the net buyer's agent commission, depending on their commission split) finder's fee is that is the standard referral fee that give to each other. Don't be afraid to ask...you won't get anything unless you ask for it.
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