Referral fees

Did you know that companies such as USAA, Century 21, basically all of the companies owned by Cendant charge referral fees when they refer a buyer or seller to me/my company? Now they are charging a 35% fee!

Take, for example, a $200k listing and assume that the listing agent negotiated a 3% commission. The commission to the listing company therefore would be $6000 minus the referral fee of $2100, bringing the commission to the company to $3900. Then, consider the agent’s split with the company, often a 50-50 split. So, the agent would get $1950, minus various corporate fees, marketing costs, fuel, etc. bringing the final cut to approximately $1200! Real estate may not be the most lucrative career now, does it? Don’t forget the taxes that must be paid quarterly!

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