Friday, July 17, 2015
Agents Get Paid a 25% Referral Fee
What is the standard referral fee from agent to agent and or broker to agent?Commission is calculated by a percentage of the SALES PRICE
A referral fee is calculated by a percentage of the COMMISSION based upon the sales price
Referral fees from agent to agent or agent to broker -- everything is negotiable. I've seen referral fees range from 25% of one side of the commission up to 50%.
Referrals are normally one sided - meaning I would refer a buyer to an agent (buyer's agent) in Omaha and I would receive 35% of his commission ONLY on the buying side.
Same goes for a seller referral - the referring agent would receive a percentage of the LISTING side.
If you are a FSBO you would offer either a percentage of the sales price (2-3%) or a flat fee to a buyer's agent (aka selling agent). You are acting as your own listing agent so there isn't a listing side of the commission. This is NOT a referral fee.... this is commission.
posted by Ron Abboud at 6:09 PM