Real estate referral fees: The good, the bad and the ugly

The common business arrangement could be improved with transparency
  • Helping a homeseller find the perfect agent adds value to the transaction.
  • Consumers have a right to know if their agent is paying a referral fee and whether a referral constitutes a recommendation.

I just love it when a check comes in the mail a few weeks or months after I referred a friend, family member or client to a Realtor in another market. I try my very best to find the perfect match. But referral fees are also territory for abuse, and the practice can leave consumers in the dark about who’s paying who.