Referral fees: a good thing for estate agents?

With a new law demanding transparency over the money earned from estate agent recommendations on the way, referral fees are currently a trending topic.

ICG members recently came together to discuss this controversial subject and ask how estate agents should approach the issue. Watch the video now.

The panel felt that agents should be entitled to receive referral fees, so long as their recommendations weren’t driven solely by financial gain. 

Babek Ismayil of OneDome believes “a good agent will always refer the right business.”  He reports that in his experience when an agent has a strong relationship with the service suppliers they recommend, the transaction happens 30% faster than when the vendor chooses the suppliers.  On the negative side, Babek says a bad recommendation could result in a failed transaction, and the agent could lose money.

Steve Meade of Agency Mentors agrees that agents must choose the companies they recommend carefully, but believes agents should continue to engage in cross-selling because of the potential to increase their earnings.  Ben Sellers of Starberry feels that agents should be rewarded when services such as real-time mortgage pricing are offered via a digital platform.

Watch the video for the full discussion and join ICG to keep updated on the fast-moving world of PropTech and property services.  Sign up for your FREE estate agent membership today.