Add an important revenue stream without increasing your spending or infrastructure.
Take advantage of your relationships and get referral fees from other real estate agents from different cities. You can significantly increase your income without investing cash. You can never go wrong by helping one of your clients and earning a few extra bucks aside. Is that the nature of the business right?
Sometimes it's not just "a few extra dollars", depending on the city and the location of the property, the referral fee may be large. For example, the average price of an Aqualina penthouse, Sunny Isles (Miami-Dade) on the 45th floor, with decadent finishes and balconies featuring the most spectacular views of Miami including a pool, is about $ 6.9 million. The referral fee for such an estate in the sky exceeds $ 50,000 and all for the purpose of registering and helping one of your clients who will surely appreciate the tip. After all, we are the professionals, the ones who are in the business 24/7 and have the connections, relationships and information at your fingertips. So come and see it happen.
The worst-case scenario, if the deal doesn't happen, is that you mentioned a new friend in Miami and maybe a free stay over the weekend (hotel and expenses included please) the next time you decide to get sunburn. The best cities to refer to are, of course, destination cities like Miami and .. Did I mention Miami ?. Referral fees can vary from state to state, so be sure to check their legality.
It is legal for Miami real estate practitioners (for example) to share the cake and send a well-deserved referral fee simply to register the client and let another professional take command and close the deal. After all, you are too far to physically get involved in the deal.
Forget the traditional $ 300 referral fee for sending a customer! You want the big money! Make sure you work with an agent who specializes in the advanced asset class, but is also well versed in the best opportunities and property values in the area. Take advantage of the referral fee by referring to it as one of your business revenue streams. Think about it. You increase your bottom line profits without increasing your expenses or infrastructure, it can't get any better.
How much do you need to get for a referral fee?
Well it varies by agent and city. But, the rule of thumb is 25% of the commission. In Miami, commissions range from 3% to 6% of the purchase price, making it even more attractive to develop business relationships and regularly receive information on the best assets and prices in this area. Tip: Be sure to ask if they have any bonus plans or special offers (usually happens when the seller is very motivated to sell).
Of course you will be paid immediately after closing, after the transaction is completed, but again, we are reviewing a 30 to 45 day makeover after the contract is executed, on average.
One more thing, by familiarizing yourself with the market you will become familiar with the product you are referring to, and by the way may be very helpful while deciding to buy your dream beach house in Miami.