Why Be a Referral Agent?
Being a real estate referral agent can be a lucrative way of earning income in the real estate business and is a good option for real estate agents who have experience and connections in the real estate world.
Definition of a Real Estate Referral Agent
It is very simple, a real estate referral agent is a Realtor who refers a client to another Realtor, who will then manage the client's real estate transaction. Real estate referral agents receive a portion of the commission on the real estate transaction a client conducts after they have been referred. A referral agent must be part of a licensed brokerage in order to act as a referral agent and receive commissions for referrals.
Who Benefits from Real Estate Referral Agents?
Referral agents can offer a win-win-win situation. The client wins by being referred to a trustworthy agent who can handle their real estate buying and/or selling process. The real estate referral agent benefits by receiving a percentage of the commission of the client's real estate transaction. Everyone wins!
How Can You Become a Real Estate Referral Agent?
In order to earn income as a real estate referral agent, you must be a Licensed Realtor. You must also be active with a licensed brokerage that can receive and process the commissions you receive from making referrals. You cannot receive commissions for referrals unless you are part of a Real Estate brokerage, or have a broker's license yourself.
Make sure to market your services widely, from social media to your website to any other place where you can make yourself visible to clients looking for referrals. Staying connected in major markets where clients are looking to buy property will help generate leads for your business as a real estate referral agent.
Creating a Win-Win Situation
As you build your referral business and create leads, you will find that being a real estate referral agent can be an excellent way of earning passive income in the real estate field. The more connected and visible you are as a referral agent, the more successful your business will be. But it doesn't stop with earning commissions. Helping clients connect to good agents is a very useful service. And connecting clients with good real estate agents who provide you with a healthy commission means that everyone - you, your client and their real estate agent - wins.