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One of the largest networks a realtor can tap into is with other agents. According to the Association of Real Estate License Law Officials (ARELLO), they estimate there are over three million (3M!) active real estate licensees in the USA.
When a client is moving to another state, oftentimes these agents reach out to other agents in their network to hand off their client for a commission.
That’s when you can enter into an Agent to Agent Referral Agreement.
What is an Agent to Agent Referral Agreement?
An agent-to-agent referral agreement is a contract where both parties agree, via commission, that the referee gets paid.
A real estate referral agent can be an individual who is not an active agent because they have set up a system where they are just handing off referrals.
An agent-to-agent referral agreement is a cooperative system that works between real estate brokers, realtors, agents, and clients.
In some regards, agent-to-agent referral agreements will help build professional networks and a loyal customer base, and become a great passive income stream.
How Much Does An Agent Make From A Referral? And How it Works.
The industry generally accepts that the usual referral fee is around 25% of the selling agent's fee. But this is up for negotiation.
Some agents might ask for more as they've done the grunt work of getting mortgage approval and more.
But before getting ahead of ourselves, it's always best to follow a streamlined process and steps.
The steps are usually as follows:
- The client must be onboard for the referral
- Get the agreement in writing
- Finalize referral fee
- The last step is making the referral.
Let's go through the stages.
Talk To Your Client
You will need your client's permission to share their details with another agent. Another element to tackle will be ensuring that they trust your referral.
Take them through your thinking.
Agent to Agent Referral Form
When it comes to making an agreement, it's always in your best interest to get it in writing or in an agent-to-agent referral form.
This will ensure there's no confusion at a later stage.
Finalize Referral Fee
Being sensitive when finalizing the agreed-upon commission can make or break your working relationship moving forward.
There are many referral agreement options, so make sure to go through them with the other agent.
Make sure that it is a fair and workable referral agreement.
Refer the Client
The last step is to introduce all parties to one another. It's essential that this is done professionally. Otherwise, the agreement will fall through.
But if it is done correctly, you will be on your way to making vital professional connections and developing a new revenue stream.
We've made it easy for those wondering how to start finding these agent-to-agent referrals.
REreferrals Make Agent to Agent Referral Agreement Easy
Agent to Agent Referral Agreements seem challenging to establish, and you'd be right.
Getting relevant agent-to-agent referrals can take hours or even days of combing through all the local Facebook groups. But at REreferrals, we make it easy!
You can receive tens of referrals in your area per day, on autopilot.
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