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Frequently Asked Questions

1. What is a referral brokerage?

A: Most real estate brokerages have agents who buy and sell houses. We don’t. Our agents refer business and receive referral fees.

2. Is a referral brokerage legal? What about the National Association of REALTORS?

A: The Idaho Real Estate Commission recognizes referral brokerages. NAR in 2003 specifically adopted a rule last year requiring every MLS & association in the country to allow agents to join referral brokerages without paying association or mls dues. Referral brokerages are very popular in larger markets.

3. Who can I refer?

A: Anyone! Family, friends, neighbors, and co-workers are just a few possibilities. The only criteria is that the person must be looking to buy or sell AND they must give you permission to refer them. You can even refer yourself!

4. What kinds of properties can I refer?

A: Virtually anything. Residences? Sure. New construction? Sure. Commercial? Absolutely. And, the property can be anywhere in the world.

5. What do I say to a potential referral?

A: If someone indicates they are looking to buy or sell, simply let them know that you are a Referral Associate and can help them connect with a good real estate agent. Ask!

6. What do I say to a potential SELLER?

A: Ask for their . .
• Name
• Telephone number
• Address of property they wish to sell
• And, if they would like to be contacted by a good real estate agent

7. What do I say to a potential BUYER?

A: Ask for their . .

• Name
• Telephone number(s)
• How soon they need to buy
• The area in which they wish to live
• What type of housing they need (single family, townhouse, condo, etc.)
• The price range in which they are interested
• Any additional information you think would be helpful

• AND, don’t forget to ask about their current home, it could mean a listing referral!

8. What do I say if my prospect is LEAVING THE AREA?

A: If your prospect is leaving the area, ask:
• Where they are moving to
• When they need to move
• If they would like assistance finding a home in the new city

9. How are referrals handled?

A: We place your referral with an appropriate agent. And, we can do so virtually anywhere in the world.

10. How much will I receive for my referrals?

A: It depends on how much the sale or purchase amount is. Assume that the party you refer buys a home for $100,000. If the buyer’s agent commission is $3,000, your referral fee would be 25% of that or $750. Once the check is received by our brokerage, your split will be 50% ($375) to 70% ($525), depending on the number of referrals you’ve sent. Not bad for a few minutes work.

11. How are splits determined on referrals?

A: The more referrals you send, the more you make. Our commission schedule is as follows:

Referrals Collected in Year Commission Split
1-3 50%
4-6 60%
7+ 70%

The year is based on the date you placed your license with us. If you placed your license with us on March 1st, then the year for commission purposes would be March 1st to the end of February.

12. If I join your company, what are my obligations with the Idaho Real Estate Commission?

A: You will have to hold an active license. If you are inactive, you will need to activate your license. When your license comes up for renewal, you will need to have fulfilled your continuing education requirements.

13. How much does it cost to join your company? Are there any monthly fees?

A: Our annual membership fee is $100. There are no monthly fees.

14. How many referrals should I do a year?

A: As many as you can (obviously the more you submit, the more you’ll make). Our contract requires the submission of four referrals a year.