Fee Disclosure: Steven A Norene LLC, the owner of the network of sites including but not limited to:

does not directly charge the client – the party looking to buy or sell a residential property. We charge a referral fee of the real estate agent that assists and closes a transaction with the client. A real estate referral fee is a portion of a real estate commission that is paid to a real estate broker in exchange for referring them to a client. Though subject to negotiation, we charge the industry standard fee of 30% of the gross commission for a single side of a transaction.

What Is a Real Estate Referral?

A real estate referral is the act of getting a client into the hands of the person who is the most qualified to get them the real estate services they need.

When to Make a Real Estate Referral

Let’s say you’re a real estate agent working in Alabama, and you have a client who wants to purchase a beach house in Florida. Even though these states are right next to each other, you as an Alabama license holder, are unable to conduct business in Florida.

However, you can refer this client to a real estate agent who is licensed in Florida, and in exchange for that referral, you (actually, your broker) receives a percentage of the commission.

How Much Is a Real Estate Referral Fee?

The short answer here is: the standard conventions that most brokers stick to In the residential real estate world is 25% – 30%.

How Common Are Real Estate Referrals?

In 2018, ReferralExchange alone made over 245,000 connections across the United States. In a survey conducted of over 1,200 real estate agents, most of whom belonged to a referral network of some sort, ReferralExchange found that nearly 25% of agents are receiving up to 10 referrals every year, further bolstering the trend seen in the last two years that the agent-to-agent real estate referral economy is growing steadily year after year.