You state that an out of state referral fee in commercial real estate is 20% – 35%
Let’s say that is fine for the 1st deal. What if the referral is for a buyer that wants to purchase more than 1 property on going ?
The broker receiving the referral is going to be doing 100% of the work
Hi Glen –
Thank you for your reading! In our article on real estate referral fees, we discussed it primarily as it applies to residential real estate, so this is the perspective of my response. Real estate referral fees can vary, but are established best through a contract between brokers. That is where you’ll find the details of your expectations and the answer to your question.
If the referring broker (at least in residential) specified a referral fee for multiple transactions or a specific time period, it is expected that this is the agreed upon arrangement between both brokers. If the referring broker only specifies a referral fee for the first transaction, then that is usually the expectation. Although verbal deals are common, be sure to always get it in writing and the details of the contract is where you’ll find the answer to what the expectation of the referring broker is. This is true in residential, and I assume it is also the case with commercial. If you are not the managing broker of your firm, be sure to get their input as well.