148 Locust Drive

In Pennsylvania, referral fees for real estate are considered licensed activity, and a license is required to collect them. What is a referral fee? A referral fee is a commission paid to someone who introduces a potential buyer to a real estate deal. It's also known as a finder's fee. The fee is usually a percentage of the total sale price of the property. How much is a referral fee? The average finder's fee ranges from 5% to 35% of the seller's commission. The exact fee depends on several factors, including: The finder's relationship with the broker Company standards Market performance The value of the property The time it takes to close the sale How do I agree on a referral fee? It's common practice for finders to sign a written agreement with brokers. It's important to agree on the referral fee percentage and the terms and conditions before accepting a referral. This helps to avoid disputes and ensure a fair fee. Who can receive a referral fee? In most cases, only licensed persons can receive referral fees. Federal law prohibits paying referral fees to unlicensed persons.