How Do Real Estate Agent Referrals Work?

Karla Painter, Realtor®

August 9, 2023

If you are looking to buy a home outside of the Denver area, I can still help you. Looking for an agent in a new place can be stressful, which is why I am here to put you in contact with the best. Whether you are moving out of Denver, are looking for a new investment property, or would like a vacation home on the beach, contacting my team is still your first step.

What is a Real Estate Agent Referral?

If you know of a great agent, but they do not service the area you are buying or selling your home in, you may ask them to provide you with a referral. Real estate agents have a network of other agents across the country who they trust with their own clients. Even if we don’t know someone in that particular area, or even if our broker doesn’t have an office in that area, we have a database where we can do the research so you don’t have to. This comes at no extra cost to you.

Why Would You Consider Asking for a Referral?

Here are a few hypothetical scenarios:

Jan and Bob are selling their home in Denver to buy a new place in Phoenix, Arizona for Bob’s job. They will be completely new to the area and do not have friends or family near Phoenix. Unfortunately, Bob’s job did not help them find an agent. Luckily, as their seller’s agent for their home in Colorado, I helped them find a buyer’s agent in Phoenix.

Mary and Dave were clients of mine last year. Now that they have settled into their new home in Denver, they would like to buy a vacation home in Steamboat. While I have visited Steamboat a couple of times, I am not familiar with the market up there, nor do I have access to their Multiple Listing Service. I know of a good agent up there who I refer Mary and Dave to.

Brittany and Peter have a junior in college in Louisiana. This fall, they would like to buy a condo in her college town as an investment property and charge their daughter and her three friends rent to live there. They met with me in Denver and I found them an agent in their daughter’s town. 

My clients, Brenda and James are moving Brenda’s mom to Denver to be closer to them. Brenda’s mom lives in New Mexico and doesn’t know of an agent to use to sell her home. I was able to find an agent for Brenda’s mother, even though she did not know me personally.

What’s in it for Us?

In order for someone to make an agent referral, they must be a licensed real estate agent themselves. When we find an agent for our clients, friends, or even our friends’ friends to work with, we receive a referral fee from the referred agent’s total commission. This fee can be anywhere from 10% to 25% depending on what we agree on. Again, this is no extra expense to the client. Agents may turn the offer down, however, these are typically great leads for them that lead to strong relationships and further business in the future.

If you are considering buying or selling property outside of the Denver area but don’t know where to begin, give me a call! I would love to put you in touch with an agent you can trust.

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