Comments on: Legal Theft – The Referral Fee http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/ A San Diego Real Estate Web Log Sat, 13 Mar 2010 21:29:14 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Knoxville, Tn Real Estate Pro http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-134810 Knoxville, Tn Real Estate Pro Sun, 26 Aug 2007 20:38:10 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-134810 I agree that referrers are sometimes "crooked", but overall I think it helps the real estate industry. Tom Ellington Knoxville, Tn I agree that referrers are sometimes “crooked”, but overall I think it helps the real estate industry.

Tom Ellington
Knoxville, Tn

]]> By: Kris Berg http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-92932 Kris Berg Tue, 22 May 2007 20:39:52 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-92932 I have never been one to "buy" leads (obviously, from the tone of the post), but the referral fees typically range from 25% to 35% of the agent's commission. In SD, 35% from relocation companies is the norm. Amazing, huh? I have never been one to “buy” leads (obviously, from the tone of the post), but the referral fees typically range from 25% to 35% of the agent’s commission. In SD, 35% from relocation companies is the norm. Amazing, huh?

]]> By: Marko http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-92894 Marko Tue, 22 May 2007 18:57:49 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-92894 I am curious to know how much leads from these outside companies cost or if they are commission based? If I was a buyer and knew my lead was sold to one or more companies I would be reluctant to do business with any of them because it seems to me like its all about the money instead of making me happy and helping me get what I want. I am curious to know how much leads from these outside companies cost or if they are commission based? If I was a buyer and knew my lead was sold to one or more companies I would be reluctant to do business with any of them because it seems to me like its all about the money instead of making me happy and helping me get what I want.

]]> By: Kris Berg http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-67122 Kris Berg Fri, 30 Mar 2007 04:36:00 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-67122 Jim, Of course, that makes sense. On the other hand, I happen to work for a company that mandates that any time a relocation company is involved, the paperwork must be "processed" through them. The bottom line is that the agent split is severely compromised on top of the typical 35% referral fee. It happens all the time: Seller calls me, seller tells their relo company they want to use me, I have to "register them" with my relo people, I cough up a referral fee, I reduce my company split for the privelege of working with a client who wanted me to begin with, etc. In the end, it is just one more profit center for the Broker at my expense. Broker-to-broker referrals are a different story, of course. Those can be handled as you suggest. Jim, Of course, that makes sense. On the other hand, I happen to work for a company that mandates that any time a relocation company is involved, the paperwork must be “processed” through them. The bottom line is that the agent split is severely compromised on top of the typical 35% referral fee. It happens all the time: Seller calls me, seller tells their relo company they want to use me, I have to “register them” with my relo people, I cough up a referral fee, I reduce my company split for the privelege of working with a client who wanted me to begin with, etc. In the end, it is just one more profit center for the Broker at my expense.

Broker-to-broker referrals are a different story, of course. Those can be handled as you suggest.

]]> By: Jim Lee http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-67044 Jim Lee Fri, 30 Mar 2007 01:33:39 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-67044 There are ways to win the relocation game; here's a few: http://activerain.com/blogsview/66324/How-to-win-the There are ways to win the relocation game; here’s a few:

http://activerain.com/blogsview/66324/How-to-win-the

]]> By: Kris Berg http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-41150 Kris Berg Sat, 03 Feb 2007 23:28:28 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-41150 Greg and Eric, Not so great to be a Chargers fan this week. Good luck to your teams. I'll check out the walkable neighborhoods. In the meantime, let me say I have taken a lot of heat for this post. So, I will back peddle and give you that all referral situations are not created equal. There will certainly be situations where in making the referral, the client is better served. I have been duly chastised and enlightened. Greg and Eric, Not so great to be a Chargers fan this week. Good luck to your teams.

I’ll check out the walkable neighborhoods. In the meantime, let me say I have taken a lot of heat for this post. So, I will back peddle and give you that all referral situations are not created equal. There will certainly be situations where in making the referral, the client is better served. I have been duly chastised and enlightened.

]]> By: Eric Fredericks http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-41114 Eric Fredericks Sat, 03 Feb 2007 21:43:50 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-41114 I also forgot to mention that it's even better to be a Bears fan this week! Bears 27, Colts 23 I also forgot to mention that it’s even better to be a Bears fan this week!

Bears 27, Colts 23

]]> By: Eric Fredericks http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-41113 Eric Fredericks Sat, 03 Feb 2007 21:43:01 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-41113 Hi Kris, I found your post to be quite interesting, as I am not (yet) a Realtor but have set up a referral network with a partner that is a Realtor. We help people find homes in walkable neighborhoods and then refer them to Realtors in those neighborhoods. It sometimes involves a decent amount of leg work up front for us (sometimes impossible!) and when we send on a referral to a Realtor, we try and educate them on the type of neighborhood our client is looking for. We try and establish a relationship with one particular Realtor in each community, so that our clients don't get someone that refers them to sprawl suburban houses. Of course, we take a referral fee from doing so. I think though when you weigh the service we're providing, and the education of people on walkable neighborhoods (planting a seed in the minds of people about the importance of the type of community you live in), then in my mind it's not such a bad thing. I'd be curious to hear what you think about the system. Complete honesty is appreciated. You can view our site at walkableneighborhoods.com Hi Kris,

I found your post to be quite interesting, as I am not (yet) a Realtor but have set up a referral network with a partner that is a Realtor. We help people find homes in walkable neighborhoods and then refer them to Realtors in those neighborhoods. It sometimes involves a decent amount of leg work up front for us (sometimes impossible!) and when we send on a referral to a Realtor, we try and educate them on the type of neighborhood our client is looking for. We try and establish a relationship with one particular Realtor in each community, so that our clients don’t get someone that refers them to sprawl suburban houses.

Of course, we take a referral fee from doing so. I think though when you weigh the service we’re providing, and the education of people on walkable neighborhoods (planting a seed in the minds of people about the importance of the type of community you live in), then in my mind it’s not such a bad thing.

I’d be curious to hear what you think about the system. Complete honesty is appreciated. You can view our site at walkableneighborhoods.com

]]> By: Greg Tracy http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-40264 Greg Tracy Thu, 01 Feb 2007 19:27:45 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-40264 BTW- It's great being a Colts fan this week! Colts- 27 Bears- 21 BTW- It’s great being a Colts fan this week!

Colts- 27
Bears- 21

]]> By: Greg Tracy http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/comment-page-1/#comment-40261 Greg Tracy Thu, 01 Feb 2007 19:25:26 +0000 http://sandiegohomeblog.com/2007/01/28/legal-theft-the-referral-fee/#comment-40261 Kris, Your view is definately valid. I was only showing another side so everyone, especially the consumer, sees the whole picture. You and Steve do a heck of a job telling the stories of our business with class, wit, and wisdom. There are definately some people out there who are basically just walking house-values clones, and in situations like you brought up where someone takes a referral fee when you were already working with that client- that agent should have disciplinary agent brought against them for being unethical. What they did is border-line fraud and if they did that once, I am sure they are doing it to many others. Kris,

Your view is definately valid. I was only showing another side so everyone, especially the consumer, sees the whole picture.

You and Steve do a heck of a job telling the stories of our business with class, wit, and wisdom. There are definately some people out there who are basically just walking house-values clones, and in situations like you brought up where someone takes a referral fee when you were already working with that client- that agent should have disciplinary agent brought against them for being unethical. What they did is border-line fraud and if they did that once, I am sure they are doing it to many others.

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