Jenn Klarman, SRES®, Realtor®, Long & Foster Real Estate, Inc.

Offering you an enjoyable and stress-free real estate experience from beginning to end and beyond! Call me today, 240-832-2486!
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Client Referrals
 
A referral from a Client is one of the highest compliments an Agent could possibly receive.
We value client referrals as the ultimate compliment. It tells us they feel we perform in such a way that consistently meets or exceeds their level of expectation. It means they consider us trusted advisors and reputable business partners. And, their referrals give credence to our core objective: to create an enjoyable and stress-free real estate experience from beginning, to end and beyond!
 
 
Working By Referral
 
We, as Agents do something similar; it's known as, working by referral.
 
What does "working by referral" mean?
Referrals are a good solution when there is a need by a client (or customer) which is out of the jurisdiction or expertise of their current Agent.
 
Here are some examples of circumstances that might result in a referral...
> When a client is relocating out of state;
> When a client is interested in an area of Maryland unfamiliar to their Agent (e.g., Baltimore City);
> When a client is interested in a type of property unfamiliar to their Agent (e.g., Cooperative Ownership); or
> When an Agent is unavailable to perform his/her duties (e.g., on vacation); or in the case of an extended leave of absense.
 
How does it work?
With our client's permission, we make recommendation of another Agent who we believe will be better suited to to assist them in addressing their specific needs and objectives.
 
The Agents agree to the terms and fees of a referral ahead of time. The terms would outline the specific requirements of the client (e.g., "...in the purchase of a home."). And, the referral fee, the same way (e.g., 25%).
 
The distribution and collection of referral fees are the responsibility of the individual Agents. The clients have no responsibility to that end.
 
Here's an example of distribution of a referral fee:
> A Seller agrees to pay 5% commission on a Listing.
2.5% to the Sellers Agent; and, 2.5% to the Buyers Agent.
> The Seller's Agent has a Referral Agreement with another Agent (25% referral fee).
> The property sells for: $200,000
> Commission due from the Seller is 5% ($200,000 x 5% = $10,000)
> Buyer's Agent Commission: $5,000
> Seller's Agent Commission: $3,750 [$5,000 - $1,250 (25% referral fee)]
> Referring Agent's Fee: $1,250
Please note: A referral in no way obligates a client to work with the referred Agent. If it's "not a good fit" (for whatever reason) -- their Agent may make another recommendation.
 
However, should a sale, lease, or purchase of a property result from a client and the referred Agent working together; the referred Agent would pay a referral fee to the referring Agent (the client's "original" Agent").
 
How does it affect me if I'm the...
> Seller: You pay nothing additional; only the agreed upon commission (it is the same whether a Referral Agreement between Agents/Brokers exists or not).
> Buyer: You are not affected.
> Landlord/Owner: You pay nothing additional; only the agreed upon commission (it is the same whether a Referral Agreement between Agents/Brokers exists or not).
> Renter/Tenant: You are not affected.