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Charles, Other/Just Looking in Allentown, PA

do referral fees expire? Can they be renegotiated? its been a year and seems unfair?

Asked by Charles, Allentown, PA Sat Dec 15, 2012

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I can appreciate your frustration especially if you've been actively working with the buyer for a year. But I don't think they do or should expire and I don't think you should attempt to renegotiate either. In the end, swallow hard, be happy for the business and know that it may very well bring you future business - and you won't be paying referral fees on that future business hopefully!

Others may disagree but my view is that rather than focus on the hit you're taking on this particular transaction you just want to keep generating business and goodwill and know that you'll come out ahead in the end. I've kicked and screamed over some fees I've had to pay out over the years but much time later come to realize that some of those transactions grew into large parts of my business because that client - that I took despite the pain of the fees paid out - has referred numerous friends to me. It's all good.
1 vote Thank Flag Link Sat Dec 15, 2012
I never heard about this kind of expiration. Did you refer a client or you was referred to?
0 votes Thank Flag Link Sun Dec 16, 2012
Unless you put a date on the referral form stating otherwise, it doesn't expire. What if you were the one who extended the referral to another agent? Should it expire--or should it remain in place until that agent finds what the person wants or until the listing sells? I'm a big believer in do unto others as you would have them do unto you.
0 votes Thank Flag Link Sun Dec 16, 2012
As Elizabeth said, a referral is a client that you would have never had if you didn't get the referral. If you don't want to work with the clients anymore, then drop them and you don't have to pay the referral. If you want to work with the client (which you would have never had if not for the referral), then pay the referral fee.

Work hard for the client. If they are happy with your services, they will hopefully refer some friends and family to you, and you don't have to pay a referral fee for those!

Brian Rayl
B&B Realty Group - Keller Williams Elite Dallas TX
214-601-4192
Brian@Rayl-Estate.com
http://finddallashomesforsale.com
0 votes Thank Flag Link Sun Dec 16, 2012
Like a sales contract it depends on whatever you agreed to when signing the referral form. If you are concerned I would contact the agent to discuss.

Chris
0 votes Thank Flag Link Sun Dec 16, 2012
Life is never fair, and perhaps it is a good thing for most of us that it is not.
0 votes Thank Flag Link Sun Dec 16, 2012
How is it unfair?

If you don't want to work with the client, and as long as you are not in escrow, you can resign your position and move on. But as long as you are working with the client (whom you may not have picked up were it not for the referral) then you should honor your agreement.
0 votes Thank Flag Link Sat Dec 15, 2012
Look. You took them on; pay the fee.
0 votes Thank Flag Link Sat Dec 15, 2012
I completely agree with Elizabeth. This business is a give and take. There are going to be times when you curse the fees but then you are rewarded for your excellence in service when your client refers you to their friends and family. Stiff upper lip and know that you are doing a great job or you wouldn't have been refered in the first place.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
http://fredyancy.crye-leike.com
0 votes Thank Flag Link Sat Dec 15, 2012
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