How Real Estate Agent Referral Fees Work

What a referral fee is

When one brokerage refers a client to another, the agent who helps the client usually pays the referring brokerage a share of their commission when the deal closes. This happens broker to broker, under a written agreement, between licensed real estate brokerages.

In New Jersey and New York, real estate brokerages and agents are licensed by the state, and referral fees between licensed brokers are a normal part of the business. The client's price does not go up because of the referral. The fee comes out of the commission the agent earns.

Where it goes wrong on many sites

• Your request is sent to several agents at once, and the phone starts ringing within minutes.
• Your information is shared or sold to other companies.
• Agents are matched by who pays the most or who answers fastest, not who fits you best.
• Agents pay large fees, which can pressure them to rush.

How MoveMatched does it

Our How we make money page explains every way the site earns, including flat fee ads from local businesses.

• We introduce one licensed local agent, chosen for your town, budget, timing and language.
• You pick how you want to be contacted. We do not sell your information.
• If the fit is not right, tell us and we match you with someone else at no cost.
• The agent pays a referral fee to our brokerage only if you close. You never pay us.

What referral fees are not allowed to do

Federal law, the Real Estate Settlement Procedures Act or RESPA, limits payments for referrals of settlement services like mortgages, title and some insurance. That is why MoveMatched never takes a fee from a lender for sending a borrower. Lenders and other local businesses can only buy flat fee advertising, the same price no matter how many customers they get.

Questions to ask any agent you are matched with

• How many clients have you helped in this town or nearby recently?
• How will you send me options, and how quickly?
• What does your agreement say about commission, and how long does it last?
• Who else on your team will I work with?

Agent fees are negotiable

Commission is not set by law. It is agreed between you and the brokerage in writing. Read any agreement before you sign it, including how much the agent is paid, who pays it, and how long the agreement lasts. If something is unclear, ask the agent to explain it, or ask an attorney to read it.

Since 2024, many buyers sign a written agreement with their agent before touring homes. Ask your agent to walk you through it line by line.

Why one matched agent works better

When five agents call you at once, the fastest dialer wins, not the best fit. When one agent is introduced, that agent knows the client is theirs to serve well. You get one relationship, one plan and one person to hold accountable. If it is not working, you tell us and we make a new introduction instead of starting over with a crowd.