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February 12, 2012
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Response To: Who's Referring Internet Leads in Your Area? (Blanche Evans - 11/23/1999)

Service
Posted By: ChrisNewell - 11/23/1999 06:54 AM

The problem with this whole process is that the consumer will end up being referred to the agent who is willing to pay the biggest referral fee. As we all know, many of the busiest agents won't take referrals, because they are busy enough without having to do so.

Referring clients is handled much better by the legal profession; in that situation, the lawyer is not allowed to accept any referral fees, and is held liable should the client be referred to a lawyer who screws up. That is surely the better way to earn the trust and respect of the consumer?

The problem is that, without legislation, no Realtor is prepared to give referrals without collecting a fee. When the client, whose home they have listed, asks for a quality Realtor in another area, I do not believe that the referring agent will turn down a referral fee, even if they do not know of an agent in the area requested.

Should this practise be legal? Not in it's present form, but if there were to be some general rules setup for referrals, and this practise had to conform, then why not? As Ardell said, it is bellyaching from other agents that is causing the uproar over this practise.

Then again, is it good to allow anything to be done in a profession that is constantly battling for the respect of the consumer? Will the consumer not be better served by handling referrals the same way as lawyers?


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