Solano Real Estate Scene: Don’t pay referral fees

Real estate brokers are legally paid a 20 to 35 percent referral fee for referring buyers and sellers to other brokers. Traditionally, this has been standard operating procedure for brokers to assist their buyers in finding an agent when their seller in Solano County is moving out of the area. For example, a homeowner in Fairfield lists their home for sale with a local broker so they can move to a retirement community in Arizona or to San Diego for a job relocation. Part of the local broker’s service to his or her seller is to help their client find a reputable and experienced broker that will help their seller find and purchase a home. Today, there are real estate brokers who make lots of money without ever holding an open house or showing property to prospective buyers on nights and weekends. There are real estate brokers in America making huge profits without ever writing up a listing agreement, preparing a purchase contract, dealing with picky buyers and demanding sellers, holding open houses and marketing listings via traditional advertising and modern drone video and photography for the internet. These brokers don’t contribute to the Fairfield Police Activities League or the Vacaville Boys & Girls Club, nor do they participate in local politics and issues that affect our market. These referral brokers advertise on TV and all over the internet and sell the customer on using them to find a quality and experienced agent. This internet referral broker sends the client contact information to a local broker and the broker pays a referral fee when the transaction closes. For example, the broker gets the buyer referral and then spends several months showing property and searching for the right home. Once they find the right property, they write and negotiate an offer that hopefully gets accepted and then help the buyer do all their inspections, and in 30 to 60 days they get paid 2 to 3 percent. For example, the sale price is $500,000 and the buyer’s brokerage gets paid a commission of $12,500 and right off the top out of escrow the referral broker gets 30 percent or $3,750 for simply referring the client from their call center in Texas, Florida or New York without ever having to deal with a consumer and the stress that goes along with buying and selling a house. Realtor.com, Zillow, HomeLight and Ideal Agent would like your contact information as soon as possible so they can make easy money as soon as possible. It’s easy to find a great agent by simply asking old people like me or your parents who have lived around here for a while and know who the best agents are in our market and cannot be paid a referral fee. People who care about you will refer you to a great agent and expect nothing in return.