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This seems like a great forum and I am happy I found it. I will be starting a residential career in NYC sometime next month and I am looking for a little advice.
As I was looking for companies to work out of, I came across something I just don't understand. I was looking at the profiles of agents for two agencies that I was interested in (One large and popular, other fairly small). Mainly looking at younger agents, I saw that those in the large company had about 3-7 rental listings each. I noticed the young agents in the smaller company had 50+ listings each. How could this be? Is the smaller company simply giving their agents these listings (mainly rentals), are they all legit, etc?
Another question is: As I start out, I know quite a few people in and around the city on a casual to friendly basis, although many are internet buddies and I haven't met them. I plan to ask quite a few if they knew anyone that was looking for a place to rent, etc, etc just to get the ball rolling for myself. And if anyone went through me because of their referral and ended up renting, I would give them some $ for their time and as appreciation. Would this be an illegal referral fee?
And if anyone went through me because of their referral and ended up renting, I would give them some $ for their time and as appreciation. Would this be an illegal referral fee?
Not legal.
Referral fees are interesting. While you cannot pay Joe Blow a refferal fee of say $100 it is perfectly legal and required that one pays a substantial " professional" referral fee to a relocation company or asset manager ( foreclosed property) . These fees are often in the 35-40% of gross commission, range.
It is also legal to pay another broker ( not agent) a referral fee for new business. In my area, this fee ranges from 25-35% of the gross commission.
Mike- Thanks. The large firm actually leads the way in rentals in NYC (although the more senior agents of course mainly focus on sales). I even just looked at another small firm to check the listings of some of the younger agents and once again they had way more on average compared to the large firm. It just gives the illusion that the folks at the smaller firms I was looking into are given more chance to succeed, but I may be missing something here.
Hey Middle-aged Mom- I kind of figured that it may not be legal and that is too bad. . Although it would still be possible for me to ask them to check around as long as they do not receive anything from it, true? I still don't see it right if a friend gave me 5 good leads and in turn he/she received nothing from it. Unless I sent them Christmas cards every year with a token of my appreciation, which of course would be illegal as well probably. Oh well. Thanks for the quick answer.
Unless I sent them Christmas cards every year with a token of my appreciation, which of course would be illegal as well probably. Oh well. Thanks for the quick answer.
You can have client appreciation nights or give your clients gifts a small gift. You just can't give them something directly for a referral.
I gave all of my clients a small easter gift one year for my client appreciation gift. If they aren't a former client (ie meaning you closed a transaction with them) and you are giving them something, I think that is pretty dubious and I personally wouldn't tread into that territory.
The easiest thing to do is to get a "job" that has no pay! LOL
Speak with several brokerages to find one that is a good fit for what your goals are. Remember each brokerage will do it's best to sign up new agents. The choice of a large or small firm depends greatly on your comfort level. There are advantages and disadvantages to both.
In the end, you will find you will need to develop your own business. The level of support or assistance from your office will vary, but you are self employed and will need to take full responsibility for the direction of your business.
Yes. I'm in agreement with the other posts - such referral payments are not legal. If your real estate education did not cover what you can and can not pay for ... take pause. Study up! The last thing you want to do is loose your license after earning it!
My suggestion is to go with the company that offers the better training and education. You can always switch companies later if you want to but if you don't get trained right in the beginning chances of you washing out are astronomical.
Mike- Thanks. The large firm actually leads the way in rentals in NYC (although the more senior agents of course mainly focus on sales). I even just looked at another small firm to check the listings of some of the younger agents and once again they had way more on average compared to the large firm. It just gives the illusion that the folks at the smaller firms I was looking into are given more chance to succeed, but I may be missing something here.
Oh. Yeah. NYC.
A different planet than mine.
I know you folks do stuff a little differently.
It would be worthwhile to work your geographic location into your CityData account.
[quote=BauerHockey;11112009]
And if anyone went through me because of their referral and ended up renting, I would give them some $ for their time and as appreciation. Would this be an illegal referral fee? [quote]
In Texas it is illegal to pay a referral fee to anyone that does not hold a real estate license. Also, gifts to clients cannot exceed $25 value.
Naima
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