Realtor Referral Fees

There are many fees involved if you plan on listing your home for sale. A fee that is sometimes paid out, but that you may not know about, is a realtor referral fee. This fee usually takes place behind the scenes from one brokerage to another, usually as payment for assistance in the whole transaction.

When and how is a realtor referral fee paid out?

A realtor referral fee is paid out when a client is referred over from one brokerage to another. This may happen if a client is moving to another area and asks his or her usual realtor to find a realtor in the new area to help find a home. Sometimes a buyer's agent may refer a client to another if the other realtor specializes in selling. In this case, the buyer's agent may prefer to only help find a home but does not like to get involved in the listing of homes. In both of these cases, it is customary to see a referral fee paid out. The fee usually ranges anywhere from 25-50% of the final commission check, depending on how involved the referring realtor is with the transaction. Many realtors prefer to pay out a flat referral fee, and usually the amount ranges from $500-$1000, again depending on the realtors level of participation. Very rarely are realtor referral fees paid by the buyer or seller, and in most states it is considered illegal.

If you plan on listing or selling your home, you are best served by familiarizing yourself with the customary fees involved in a real estate transaction. Though they normally take place in the background, away from the view of the buyers or sellers, realtor referral fees are commonplace and have a prominent use in the world of real estate.