How are Referral Fees determined?

Referral Fees vary by property type, size, and local market.

For residential transactions, we’ve found that 25% is the most common referral fee that residential brokers offer to pay to any broker for the referral of a buyer. For the referral of a seller, multiple brokers have told us that 30% is acceptable.

The referral fee is calculated as a percentage of the commission that’s paid to the company at which your Representing Broker works.

In general, if the referral is for an inexpensive home, the referral fee percentage will probably be lower than for an expensive home.

For commercial leasing, there is no such “rule of thumb” because leases for commercial space vary widely in length and commission is determined, in part, by length of lease. The largest commercial IIC transaction, thus far, was a 10 year office lease for 24,000sf that generated $42,000 of unrestricted funding that was split by 15 charities.


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