How to Refer Real Estate Clients to Another Agent

A past client calls to say they're moving across the country, or a friend is buying a rental in a market you've never worked. Knowing how to refer real estate clients to another agent turns that call into income instead of a polite "I can't help you there."

The process for how to refer real estate clients to another agent is simple, but the order matters. Get one step out of sequence, usually the paperwork, and you can do all the work of finding the right agent and still not get paid.

Steps for How to Refer Real Estate Clients to Another Agent

To refer a client, confirm they aren't already working with an agent, choose a strong agent in their market, agree on the fee, and sign a referral agreement between both brokerages before you share any client details. Then make the introduction, step back, and get paid through your brokerage after closing.

Step 1: Spot the Referral

Most referrals start with a client who needs help somewhere you don't work. That could be a relocation, a second home, an investment property in another state, or a property type outside your specialty, like commercial or land.

You don't need a license in the other state to send the referral, because you aren't practicing real estate there. Here's more on whether a real estate agent can refer clients out of state.

Step 2: Confirm the Client Is Free to Refer

Ask whether they're already working with an agent in that market. If they are, respect it. If they aren't, tell them you'd like to connect them with someone you trust and get their OK before you pass along their name.

Step 3: Choose the Receiving Agent

Your name goes with the referral, so pick carefully. Look for recent sales in that specific market, strong reviews, and an agent who answers the phone. A quick call before you commit tells you a lot about how your client will be treated.

Step 4: Agree on the Fee

The referral fee is negotiated between the two brokerages and agreed before the client is introduced. There's no fixed rate, and it comes out of the receiving side's commission, not from your client. If you're handling the conversation yourself, here's how to negotiate a real estate referral fee.

Step 5: Sign the Referral Agreement

Both brokerages sign a referral agreement that names the client, the fee, and how long the referral stays valid. That signed agreement is what guarantees your fee, so nothing else moves until it's executed.

Step 6: Introduce Your Client and Step Back

Once the agreement is signed, make the introduction by phone or a group email and share the client's goals, timeline, and budget. Check in with your client now and then, but leave the advice, showings, and negotiating to the receiving agent.

Step 7: Get Paid Through Your Brokerage

After closing, the receiving brokerage pays your brokerage, typically within about 10 business days, and your broker pays your share under your own split. Our guide to how real estate referral fees work covers what a complete agreement includes and how to protect the payment.

The Mistake That Costs Agents Their Fee

The most expensive mistake is giving the receiving agent your client's details before the referral agreement is executed. Once they have your client's name and number, you have nothing left to negotiate with, and no written proof the referral was yours.

It usually happens with good intentions. The client is eager, the other agent is friendly, and a quick text with the client's number feels harmless. Wait anyway. A signed agreement takes a day at most, and it's the only thing that protects your fee through closing.

Let Park Place Handle the Referral for You

If you're an active agent with your own brokerage and don't know the agents in your client's market, Park Place Realty Network can place the referral for you anywhere in the U.S. We've built relationships with the top companies since 2010 and match your client with a top local agent.

We never share your client's information until the referral agreement is executed, usually within one business day, and you can check in with us or the assigned agent anytime. There's no upfront cost. After closing, we pay your company 22.5% of the total gross commission. Submit your referral to Park Place.