Normally, when you have a referral and you have an agent that you would like to use, the referral fee that we charge to work with their company is 30% for sales above $200,000, and 25% for any sales below $200,000. You always make 22.5% of the total commission on either the buy or the sell side, but not both. The only time your fee would change is on lower priced sales in which we have a $100 minimum. If you have an agent that you would like to use that is willing to pay a higher referral fee to earn your business, let’s say at 40%, then your split with Park Place would be 75/25% which you would end up making much more. Below is a break down.

 

Example:

 

Normal transaction:

 

Sales price: $400,000

X 3% real estate commission = $12,000

X 22.5% your total referral fee = $2,700

 

Based on a 40% referral fee:

Sales price: $400,000

X 3% real estate commission = $12,000

X 40% referral fee, x 75% split = $3,600

 

​

Park Place typically charges 25/30% referral fees to other real estate companies for our referrals, depending on price, as we want to be fair to other companies. Real estate companies are used to paying much more for quality referrals. The Cartus Network, which is the largest relocation company worldwide, will charge 40% referral fees, whereas Coldwell Banker will charge 35%. Asking for a 40% referral fee is not unheard of. Especially if you have an agent that you have a relationship with and are sending them quality referrals from your friends and family with a high closing ratio. Real estate companies are used to paying 25% referral fees for internet leads from companies that produce online leads. Online leads only have about a 10% closing leads. Whereas referrals that come from Park Place are typically family and friends of our agents with a 65%+ closing ratio.

 

*Pick whatever percentage you think is fair between you and the agent you want to send your business to and verbally talk it over with them first before placing the referral or giving them your referrals info. Maybe 35% is a fair number. Or, you might have a friend that is a cash buyer and needs a contract written today and can close asap, in which case a 75% referral fee might be fair.

 

Placing the Referral

 

If you have an agent that you have personally talked with and has agreed to pay a referral fee higher than 30%, please fill out your referral’s information here on our website. Include all of the details on your agent and add in the notes the total amount of the referral fee that you have agreed on. We will email you to confirm the 75/25% commission split on this transaction and will also email your agent our referral agreement for their broker to sign.

 

​

If you have any additional questions on this, please send us an email to admin@parkplacenetwork.com.