A referral real estate agent, also known as a real estate referral agent, is a licensed real estate professional who finds people looking for homes and refers them to professional full-time real estate agents to complete the home-buying process. The referral agent earns a fee if the person buys a home through that real estate agent. People work with referral agents because these professionals can connect them with the best real estate agents for their needs. Real estate agents work with and give a percentage of their commission to referral agents to get new clients.
What Does a Referral Real Estate Agent Do?
A referral agent markets their services to find homebuyers looking for real estate agents. They then pair that homebuyer with the right real estate agent. If that agent sells the client a house, the referral agent receives a referral fee for their service. Their typical job duties include:
- Finding potential homebuyers or leads
- Marketing themselves online or in person
- Meeting with home buyers to determine their needs.
- Referring their clients to a professional full-time real estate agent
- Following up with real estate agents and clients
Referral agents typically work for a real estate brokerage. They might serve clients in many markets, looking for various types of properties. Some referral agents are semi-retired or work part-time and combine their real estate duties with another career. Others work full-time, including some evenings and weekends, to find and refer as many clients as possible
The average base pay for a referral agent is $48,000 per year. This amount varies depending on the region and type of real estate the agent is involved with. Because they work off referral commissions, referral agents earn more money for each client they connect with a real estate agent which results in a sale. Also, some real estate agents pay referral agents larger fees than others. The more expensive the property a client buys, the larger commission the referral agent might receive.
A referral agent’s income fluctuates depending on the number of successful referrals they make. Referral agents with more years of experience and larger networks of clients and real estate agents typically earn more than those just starting their careers.
If you would like to learn more about becoming a referral real estate agent, talk with a Main Street Referral Agent and let them introduce you to the referral real estate business.