Referral Fees?

[jeffrey dean]

Just a thought.....in the last 30 days, I have referred some large assignments to other commmercial appraisal companies.

The jobs included a golf course, marina project, and operating cattle ranch.

I can confirm all three referrals received the assignments.

Also, dozens of SFR jobs.

I have yet to receive a "Thank You" from anyone.....

I know realtors get referral fees and was just wondering if appraisers ever considered asking for such fee's.?

 

[The Warrior Monk]

I know realtors get referral fees and was just wondering if appraisers ever considered asking for such fee's.?

You can certainly ask for and collect a referral fee. You would not need to take any further action. The person paying the fee would need to disclose that a fee was paid to their client.

 

[sputnam]

I don't do referral fees either direction. I do thank folks when they do something for me. And I like it when people thank me.

One thing to consider....maybe the person you referred didn't tell the other appraiser that you had recommended them.

 

[leasedfee]

I don't pay or receive referral fees. Referral fees are for marketers with large gross margins who have to hit home runs to get paid. I knew one appraisal company who did, but I felt he was giving away the better part of the profit margin. This work is already too hard to pay a referral when it isn't that hard to generate your own work. I would decline such a referral. . . . Instead, I have a network of former colleagues and other professionals who I constantly share advice, share data when in a pinch, give referrals based on the nature of the assignment, and receive referrals. When a client who I cannot serve calls, they're being referred to a professional(s) who can best address their problem as opposed to someone who remunerates me.

 

[tsiegel]

I don't pay or receive referral fees. Referral fees are for marketers with large gross margins who have to hit home runs to get paid. I knew one appraisal company who did, but I felt he was giving away the better part of the profit margin. This work is already too hard to pay a referral when it isn't that hard to generate your own work. I would decline such a referral. . . . Instead, I have a network of former colleagues and other professionals who I constantly share advice, share data when in a pinch, give referrals based on the nature of the assignment, and receive referrals. When a client who I cannot serve calls, they're being referred to a professional(s) who can best address their problem as opposed to someone who remunerates me.

I agree with this entirely... my referring my client to another capable appraiser is a mechanism of customer service as well as good will to those of my colleagues who's advice, opinions and expertise I value and make use of from time to time.

That being said... Along different lines, I have found that investors from time to time will tell me that they are in the market for a particular property type or are thinking of selling one of their properties, but it is not formally listed at the time. In that case, I can refer that individual to a couple brokers that I know, like and trust (short list) who may be able to help them. In that instance, I am more than happy to take a referral fee :new_smile-l: Depends on who you talk to, but you may need to hold an agent/broker license for that.

 

[The Warrior Monk]

Depends on who you talk to, but you may need to hold an agent/broker license for that.

It depends on the law in that particular state. Here in NY, you need a license to collect a fee related to the sale of real estate, which includes referral fees. In fact, that is one of the main reasons I hold a real estate salesperson's license.

 

[The Warrior Monk]

FWIW, I've never collected a referral fee with regard to appraising, though I have been offered such fees when I have referred assignments. Other service professions, such as attorneys, do pay these types of fees though.

 

[Mountain Man]

I've never paid or received a referral fee for appraisals. However, I have been given a thank you gift, and have given a thank you gift... all well after the fact and usually around the holiday season.

 

[Deleted member 128537]

In my county we have a pretty good relationship between appraisers and are constantly talking to each other about difficult assignments, getting data, or just friendly conversation. We also recommend each other when appropriate. So it goes both ways and we stay clear of the referral fee mess. Too hard to keep track of.

 

[JRS at OBX]

I pay a referral fee by referring work back to them when I have the opportunity. If you demand a payment because this client called your number first, I won't be referring anything to you.