Questions on Referral Rebates

FAQ About Questions on Referral Rebates

Questions on Referral Rebates Questions on Referral Rebates
5 months ago | kevincbachman

What is a referral rebate?

A referral rebate is simply referring a customer to another agent that is in another state or possibly a different area of the state.

Questions on Referral Rebates Questions on Referral Rebates
5 months ago | kevincbachman

How much of a rebate can I expect from a referral situation?

Unfortunately, referral rebates do not have the value as a new home or possibly a resale rebate. For example: You, the buyer are located in Iowa and moving to Washington State. Unlikely, you know a real estate agent in the immediate market area, so we can find you a capable local agent and refer the business to them and receive a referral fee once the sale has closed.

Questions on Referral Rebates Questions on Referral Rebates
5 months ago | kevincbachman

What calculation would you use to estimate the rebate?

Typically, a referring agent would receive (let's say 25%) of the buyers agent commission. For example: You closed on a $300,000 home and the collected commission is 3% on the buyers side. As the referring broker, we would receive a total commission of $2,250 and you would receive 50% of that. Here's the breakdown.

Sold for $300,000

Buyers Agent Commission is: $9,000

Referring Broker Receives 25%: Equals to $2,250

To you as a rebate: 50% or $1,125


Questions on Referral Rebates Questions on Referral Rebates
5 months ago | kevincbachman

Can I use my local real estate agent to locate an agent to where I am moving and still get the rebate?

Very unlikely that will happen. Since the rebate is not as significant as other rebates, I don't think your agent would appreciate that since he/she would not make much profit from the transaction. If you feel comfortable with your agent finding a real estate professional in the area you are moving to, then by all means, let them handle the request since you have a ongoing relationship.

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