Family member wants us to give her the listing

[manderly6]

Originally Posted by rjrcm

I think it may cause some agents to take on clients where they are out of their area of expertise based on skills or location that would otherwise refer to someone else that would be more appropriate. I don't see any upside for buyers/sellers.

How about the agents on this board? How many of you would continue to refer people if you weren't getting a referral?

[NinaN]

Originally Posted by old_cold

Manderly, there is a possiblity that the retained agent will never know he/she isn't paying for a legitimate referral.Which makes all the discussion beside the point.

This thread really is all about what the OP thinks/feels/should do.
In this instance, the OP would like to see her sister get some extra money for personal reasons.
What the sister is proposing is a way for the OP to be generous without it costing her a cent but with someone elses money(the realtor)
Cheap charity and I wonder if that's why the OP is not comfortable with it

How about this. Figure out what the sister would receive for the referral fee after the split with the broker and paying taxes. Try to negotiate that amount off the listing fee and send the sister a check for that amount. She gets just as much and the listing agent doesn't have to reduce their fee as much. I still don't condone it since the sister didn't do anything to earn the referral, but if it makes the OP feel better than this might be the best way.

[picklejuice]

This kind of reminds me of all the freakin' family members who constantly ask other family members to buy whatever they are selling! Boundaries, people!

If I want or need what you're selling, I WILL LET YOU KNOW!

OP, I am sure that if you had really wanted to include your family member in your piece of the real estate pie, you would have done it without being asked! That would have been your first thought: "Gee, I should be sure to include Cousin So & So in the profits from the sale of the home."

Note to the world: Don't look at your family as potential $$$ signs! Spare them. We already have enough "friends" who are doing just that!

[rjrcm]

Originally Posted by manderly6

How about the agents on this board? How many of you would continue to refer people if you weren't getting a referral?

I would still refer if the situation warranted it (skills or location issue). I also refer when I'm going to be unavailable such as on vacation.

Just FYI, it is also a Realtor Code of Ethics violation to work with clients where your skills or location are not appropriate.

[MikeJaquish]

Originally Posted by manderly6

How about the agents on this board? How many of you would continue to refer people if you weren't getting a referral?

It is a service business. I would.
Well, more accurately:

Yes. Sometimes. No. Sometimes not. Maybe. It depends.


I worked with a lady. Lots of hours.
She decided she wanted a home an in-office colleague had listed.
I don't really care for dual agency, and thought it best to refer her outside the office so she would have full representation.
I sent her to a friend, and got a referral fee.
I'm OK with that.

A couple called me. I showed them a few homes and hooked them up with a lender who worked for months to help them build credit.
And they started looking at homes a little further away than I cared to go.
I referred them to a colleague, and collected a referral fee.
I'm OK with that too.

A woman consulted with me for months prior to relocation. I did a lot of legwork and had some stuff lined up.
And, at the last minute there was a snag and her husband took a job in another city 90 miles away.
She was in a panic, since they were moving out of their home.
I asked, "I know some folks over there. Would you like me to connect you with a great agent?" I made a couple of phone calls, and she had a great agent call her back in about 3 hours.
I collected a referral fee.
She was effusively grateful, as was the agent.
I'm OK with all that.

I think I delivered value in all those examples. Which of those referral fees should be illegal?


The real issue stems from lack of transparency and the common shell game with the money.
If buyers just coughed up cash for services, then it would not be necessary for them to reimburse the referring agent with money they pass to the seller to hand to the listing agent and back to the buyers agent and then a piece to the referring agent, just so the buyer can finance it in the deal and call it "Free."

[Jkgourmet]

Originally Posted by suzsaz

As the OP, we luckily have time before we list. We are building out of state, and we honestly can't move out until at least the middle or end of 2013. If we can sell in the meantime on our own, we will and then rent until we are prepared to do the "big" move.

Thank you all for understanding that I am in an awkward position. If my sister wasn't taking care of my elderly dad (he is not in bad shape, just very feeble having had a minor stroke a few years back) plus my mother lives very close to them who is not in great shape (she is semi estranged from the family and had a stroke a few years back). It's complicated, and I won't elaborate any further....

But, I am forever indebted to my sister...

Then give your sister a gift FROM YOU. Don't make the realtor give her a gift.