Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-14-2012, 08:10 AM
 
8,005 posts, read 7,137,440 times
Reputation: 18165

Advertisements

I'd like to know if I'm the only Realtor on Earth who thinks the whole practice of referrals stinks. I can't remember how many times I've had clients bring up (many times after we've been working for a while) that Aunt Rose 1000 miles away has a license and wants a referral. Not because she found me and recommended me, but because she has a license. This past week the brother of a satisfied client contacted me because his sister, a previous client, recommended me. His girlfriend called me after I spoke with him and demanded a 25% referral. I asked if she would compromise on the 25% if we wound up in a low or reduced commission deal. Her response was, I have another agent standing by willing to pay me 25% regardless. Play ball or you don't get my boyfriend as a client. Never mind that he wanted to work with me to start with or that I came highly recommended while the girlfriend had never heard of me. I declined.

Unless another Realtor has a client I wouldn't get without them I can't see how a referral is fair in any sense of the word. Even if I wouldn't get them without the introduction the whole process reeks of greed. I have never and will never ask for a referral. Am I alone?
Reply With Quote Quick reply to this message

 
Old 05-14-2012, 09:26 AM
 
4,567 posts, read 10,605,744 times
Reputation: 6725
Yep, it stinks. Feel free to turn her down and make nothing.
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 09:41 AM
 
3,398 posts, read 5,086,924 times
Reputation: 2422
I agree with both posts so far. I would accept the referral rather than make nothing, but I agree that isn't suppose to be how it works. It isn't really a referral because nothing was referred. Bozo agents don't know what the word referral actually means I guess and call after the fact and say "Hey, give me some free money!"
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 09:48 AM
 
Location: Central Texas
20,958 posts, read 45,223,163 times
Reputation: 24738
Is his girlfriend an agent? That's the only way referral fees can legally be paid around here.

I predict that even if you agree, the girlfriend is going to be a continung problem throughout the process.
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 09:50 AM
 
Location: Salem, OR
15,509 posts, read 40,231,078 times
Reputation: 17383
I guess it says something to me about the client that they are willing to go to some random person rather than someone they think is good. Is it really that big of a loss to lose a client like that?

You are blaming the agent for being greedy, but what does it say about the consumer's ability to think through things? Seems to me that someone that is that big of a jellyfish isn't going to be a good client. I only work with good clients.
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 10:19 AM
 
8,005 posts, read 7,137,440 times
Reputation: 18165
Yes, girlfriend is an agent. Boyfriend really has no choice here. He probably acceded his right to make his own decisions long ago in this relationship. Even though he wants to work with me, the repercussions of going against the girlfriend's wishes would probably make home life difficult for him. I already declined the "referral" when she told me she wouldn't compromise on the 25% and threatened me with going to another more-willing agent. He will now be working with a randomly-chosen agent willing to give up the 25% no matter what the eventual situation. Good news is girlfriend is probably happy....for the moment. As someone said to me, "Can you imagine the pre-nup she's going to want?"

I honestly don't think a referral is ever fair. Why should I get some of your pay just because I sent my friend or relative to you. All I should want as the referring agent is for you to do a good job. Should my waitress friend in one city expect part of the waitress's tip in another city just because she recommended the restaurant to me? I could be wrong here but I think absolutely not.
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 12:57 PM
 
Location: Salem, OR
15,509 posts, read 40,231,078 times
Reputation: 17383
Quote:
Originally Posted by 1insider View Post
I honestly don't think a referral is ever fair. Why should I get some of your pay just because I sent my friend or relative to you. All I should want as the referring agent is for you to do a good job. Should my waitress friend in one city expect part of the waitress's tip in another city just because she recommended the restaurant to me? I could be wrong here but I think absolutely not.
Your example isn't an accurate one because a waitress doesn't generate their own business. Think of a referral fee this way...you spend probably about 20-25% of your business budget on marketing? All you are doing is compensating another agent for essentially acting as your marketer for that buyer. I guess I think that if a good agent takes the time to look for another good agent (and yes, that takes time to find one) in another city for a client, I'm happy to compensate them for their time if they pick me.

I made a referral down to Tucson not long ago and was asking a few agents on here and on other forums for referrals as well as checking out listings and marketing for my client. I wanted to make sure I send them someone good. My research paid off and I found them an agent they were totally happy with. I spent a lot of time checking her out before I sent out the referral. I appreciated being compensated for my time.
Reply With Quote Quick reply to this message
 
Old 05-14-2012, 05:47 PM
 
Location: Columbia, SC
10,907 posts, read 21,872,076 times
Reputation: 10539
You don't like it? Start using buyer agencies. It irons out all that up front. Your fault if you're not using them.

Now the second scenario, if the gf is an agent why isn't she representing him? I hope it's because she isn't local.
Reply With Quote Quick reply to this message
 
Old 05-15-2012, 05:44 AM
 
8,005 posts, read 7,137,440 times
Reputation: 18165
Quote:
Originally Posted by Brandon Hoffman View Post
You don't like it? Start using buyer agencies. It irons out all that up front. Your fault if you're not using them.

Now the second scenario, if the gf is an agent why isn't she representing him? I hope it's because she isn't local.
Girlfriend is in New York. I'm in Florida.

Don't understand what you're saying here about buyer agencies. If you're saying have every buyer sign a buyer-brokerage agreement up front, no thanks. I used them years ago but have had much better client relationships since I stopped using them. I think they scare off too many potential clients. I was recommended to this particular buyer by his sister not the girlfriend. She doesn't know me, never talked to me until after the fact and like a lot of agents, thinks that having a license in New York entitles her to a cut of my pay even though she didn't send the client to me. Had I not known this buyer and she contacted me to represent him, I would have considered taking the referral. The fact that she refused to consider reducing the 25% if we found ourselves in a situation of reduced commission clinched my refusal.

I think legitimate referrals like the one mentioned by Silverfall above where you take the time to try to find the best possible agent in another area for your client and then ask for a referral is OK. In a situation where a buyer asks for a referral for a relative or friend (who didn't find the agent) from a hard-working agent just because their friend/relative has a license, the practice has a foul odor. Just my opinion.
Reply With Quote Quick reply to this message
 
Old 05-15-2012, 02:06 PM
 
Location: Columbia, SC
10,907 posts, read 21,872,076 times
Reputation: 10539
Quote:
Originally Posted by 1insider View Post
Don't understand what you're saying here about buyer agencies. If you're saying have every buyer sign a buyer-brokerage agreement up front, no thanks.
That's exactly what I'm saying. Don't complain about buyers doing things you don't like if you don't protect yourself. Your fault as much as theirs.

Quote:
Originally Posted by 1insider View Post
I used them years ago but have had much better client relationships since I stopped using them. I think they scare off too many potential clients.
Then you're doing it wrong. They are required by my state anyway, but I show value to the buyer and sign a "Commitment to Service" that allows them fire me if I'm not providing adequate service. I have not had serious buyers balk at signing them and the last 3 years I've been in the top 10 of my 2100 agent MLS in buyer side closings.

Quote:
Originally Posted by 1insider View Post
I was recommended to this particular buyer by his sister not the girlfriend. She doesn't know me, never talked to me until after the fact and like a lot of agents ...
I was afraid that may be the case. I guess here you have to make a business decision if you're willing to pay it or not. I'd have probably refused it in that situation also but it does stink. You my sympathy here.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top