Every market like this we start getting the referral fee escalators!! I had an agent try to get a 30% referral fee from me saying, "I've done all the work--the buyer has found the property they want and all you have to do is write it up--give me 30% referral fee!". First off, she didn't BUY that unit, secondly, both of the available units in the complex are "short-sales"!! Thirdly, the condo is selling for $190,000 with a 2.5% cooperating broker fee "subject to lender approval"! And she WANTS 30%!! If you don't leave enough on the table for the other agent to make a buck then I fear for my referred client. Who's to say the referring agent is going to work all that hard for peanuts because they are giving away so much of their fees in brokerage fees, referrals fees and "short-sale" reduced commissions. Besides, if the first thing an agent does is give away 50% of their fee to simply get a referral, I wonder what they will be giving away of MY CLIENT'S bargaining power!!
Stefanie--your Mom told you many years ago--don't give it away for free!! Your too gorgeous for that!!