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The Truth Behind Real Estate Referral Companies

In recent times there has been numerous Real Estate referral companies appearing in the media through TV and radio. All of them claim they will find the best agent in your area for you if you are selling. What they don’t tell you is that the agents they recommend to you have to pay them a fee or they will not be recommended.

If the best agents in your area refuse to pay them (which they all should refuse), they will not be recommended to you.

Some agents are passing on the cost of the referral to the seller, our advice is do not pay it and if you are selling, do your own research with agents in your area.

Mystery shop them as a buyer and see how you are treated.

Did they take your call or call you back promptly?

Did they give you the right information?

Did they unethically reveal why the seller is selling?

Did they unethically reveal a price the seller would accept?

Did they offer you an appointment or just refer you to the open house?

Ask yourself if you would want this agent talking to your buyers.

Did they refer you to the listing agent only?

When you are selling you must employ a sales team, not an individual agent. A Sales team will work together and compete with each other to get you the highest price. Don’t list with one agent, hire the whole team.

If they fail on any of these points, there is a good chance the agent will not perform well for you when you are selling.

Real Estate referral companies mostly promote and rate individual agents, this does not truly reflect the agencies  ability to provide the best service and to achieve the best price.

If you do decide to subscribe to one of these referral companies, your details will be sent to all the agents in the area that have registered with them, (all the agents that agree to pay them) and you will be contacted continuously until you submit to an appointment.

Whilst these companies promote their service to you as free, they do little or no research on the agents they recommend to you and continue to make false claims that they do.

If you are going to be selling, do your own research, do not rely on referral companies that are just out to make money for providing mostly poor advice.

Source: Tom Moss, MOSS Estate Agents

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