Do Agents Give Referral Fee?

[lingling 0]

My relative from overseas wants me to help her friend who wants to buy a property. She asks me to help her look for one and she doesn't mind paying agent commission. I'm not a property agent and I believe I can only find the property through an agent, but will they want to pay me? How much will they pay me? I heard it would be more than 20% or 30% of their commission (should be 1% right) but one agent dealing in hdb flats who I tried calling for enquiries (I believe it makes no difference) told me I can only receive a standard amount of $100-$200. Anyone knows about this?

Edited August 1, 2007 by lingling

[Phantom 1]

My relative from overseas wants me to help her friend wants to buy a property her and she asks me to help her look for one and she doesn't mind paying agent commission. I'm not a property agent and I believe I can only find the property through an agent, but will they want to pay me? How much will they pay me? I heard it would be more than 20% or 30% of their commission (should be 1% right) but one agent dealing in hdb flats who I tried calling for enquiries (I believe it makes no difference) told me I can only receive a standard amount of $100-$200. Anyone knows about this?

Well, that depends on different agents.

then again if the agent is really helping you and doing all the legwork, would it be too much for the person to earn his living?

its all guidelines anyway, but if any agent is going to give too much and they are doing all the work, i don't see why any would want to help you. its not meant to offend you, but to offer you another perspective.

cheers!

[zirhk3355 1]

My relative from overseas wants me to help her friend who wants to buy a property. She asks me to help her look for one and she doesn't mind paying agent commission. I'm not a property agent and I believe I can only find the property through an agent, but will they want to pay me? How much will they pay me? I heard it would be more than 20% or 30% of their commission (should be 1% right) but one agent dealing in hdb flats who I tried calling for enquiries (I believe it makes no difference) told me I can only receive a standard amount of $100-$200. Anyone knows about this?

I dun think there is even a guideline on such referral fees; most agents give on goodwill basis, hoping that you will refer more cases to them. IMO, you will only get good referral fees from, 1) relatives/friends who are agents, or 2) desperate agents.

BTW, the agent does not get the full 1% comm; remember they got to give back to their company as well? The company usually take 30% to 5%, depends on the level of the agent (company takes more for junior agents). That will leave a junior agent with, say, 70%. If s/he gives you another 30%, they only got 40% left. Agents who are established may not be keen to do such cases, unless on friendship basis.

I did refer a buyer-friend to my agent-friend before, the buyer-friend bought a 4-rm flat and my agent-friend gave me $300. But since its all friend-friend, I in turn gave $150 to my buyer-friend; everyone is happy lor.

[Phantom 1]

lol, i think this issue you gave a more in-depth explanation compared to mine. =)

[lingling 0]

I understand about agents doing all the works while all we do is to give them a call, but if it's base on a $1m (esimated) deal I think $100 is a bit too little right? I hope I don't sound greedy here.

[zirhk3355 1]

I understand about agents doing all the works while all we do is to give them a call, but if it's base on a $1m (esimated) deal I think $100 is a bit too little right? I hope I don't sound greedy here.

Yeah everyone want to earn abit lah, its normal.

But do you know that for properties with high price-tags, people neg with agent to reduce the comm? I supposed agent does not know both of you, so s/he would definitely try very hard not cut back on his/her own profits. And so, the more you take from the agent, the harder it is for your relative's friend to neg.

I got $300 for a mere 4-rm flat was because the agent is my friend and she knows that I will refer more cases to her. So she cut back on her own profits on goodwill basis and in view of long-term relationship.

BTW did you just call up this agent on some flyers or newspapers? Do be careful lor; sekali the agent screw up and your relative blames you. Try to ask around for an agent that you trust, better that way...

[l_club23 0]

Yeah everyone want to earn abit lah, its normal.

But do you know that for properties with high price-tags, people neg with agent to reduce the comm? I supposed agent does not know both of you, so s/he would definitely try very hard not cut back on his/her own profits. And so, the more you take from the agent, the harder it is for your relative's friend to neg.

I got $300 for a mere 4-rm flat was because the agent is my friend and she knows that I will refer more cases to her. So she cut back on her own profits on goodwill basis and in view of long-term relationship.

BTW did you just call up this agent on some flyers or newspapers? Do be careful lor; sekali the agent screw up and your relative blames you. Try to ask around for an agent that you trust, better that way...

Referral Fee? As in co-broke is it?

[zirhk3355 1]

Referral Fee? As in co-broke is it?

Not co-broke, just a friendly goodwill fee when you inform an agent that you have a buyer/seller. Machiam referring someone to go buy car or other products/services...

[l_club23 0]

Not co-broke, just a friendly goodwill fee when you inform an agent that you have a buyer/seller. Machiam referring someone to go buy car or other products/services...

Oh, token sum. Co-broke better, get more, but dunno how to go about doing it...

[zirhk3355 1]

Oh, token sum. Co-broke better, get more, but dunno how to go about doing it...

Co-broke means two agents are involved in one transaction.

One agent will represent the buyer, one agent will represent the seller. Each will get the respective commissions (1% for buyer, 2% for seller), but they will have to do work for the respective parties. For private properties where sometimes the buyer does not pay comm, co-broking agents will share the commission from the seller.

Thus you got to be an agent in order to co-broke...

[l_club23 0]

Co-broke means two agents are involved in one transaction.

One agent will represent the buyer, one agent will represent the seller. Each will get the respective commissions (1% for buyer, 2% for seller), but they will have to do work for the respective parties. For private properties where sometimes the buyer does not pay comm, co-broking agents will share the commission from the seller.

Thus you got to be an agent in order to co-broke...

Didn't know that you need to be an agent. So need some kind of license?It isn't all just a gentleman's agreement or is there some black and white document?

[zirhk3355 1]

Didn't know that you need to be an agent. So need some kind of license?It isn't all just a gentleman's agreement or is there some black and white document?

At the moment I don't think agents got licence; seemed like everyone also can be agent.

But you need to know the job in order to co-broke mah. Eg if you represent the buyer, you got to get the proper documentation, qualify your buyer (bankruptcy, eligible to buy, etc), help the buyer to check the property for defects, etc. You need access to certain systems and network in order to do some of the stuff, which only agents will have.

BTW do you know if an agent does not do the proper, s/he can get sued? So if you are not an agent, nobody can help you leh...dangerous...

[bullet 0]

My relative from overseas wants me to help her friend who wants to buy a property. She asks me to help her look for one and she doesn't mind paying agent commission. I'm not a property agent and I believe I can only find the property through an agent, but will they want to pay me? How much will they pay me? I heard it would be more than 20% or 30% of their commission (should be 1% right) but one agent dealing in hdb flats who I tried calling for enquiries (I believe it makes no difference) told me I can only receive a standard amount of $100-$200. Anyone knows about this?

Usually, Agent will pay some referral fee to you between 300 to 500. Reading your case, it seems that your oversea friend can only buy private property. For private property, agent usually don't collect commission from buyer. They'll only be paid 0.5% from seller's agent if they co-broke. Which is to say, they got only around $2500 for every $500k sales. Out of the $2,500 they earn, they will have to pay part of the money to company they belong to, travelling expenses, their phone bill, their hours spend to work on the purchase, and your referal fee. I hope you can have a better picture of what is going on, when you are paid $300 to $500 for just a phone call away as compare to the earning the agent with so much hidden expenses

[lingling 0]

I didn't know for private property agent will receive commission from seller only, because a friend of mine who just bought a condo had paid her agent and this relative's friend is prepared to pay an agent fee. Ok, perhaps it's good that the friend can save the money. As for my side, I will have to represent the friend to go for viewings since she's not staying in S'pore and I don't expect to receive any tokens from her for doing the job.

[raincole 0]

Since u are her friend, just do it for friendship. Dun let $$ get in the way of friendship. I'm sure she will appreciate u for ur efforts.

Agent is only doing their work and thus should be paid rite.