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Real estate & rental

Real Estate Agent Referral Fee Calculator

What a referral fee costs the receiving agent, and what it leaves after the brokerage split.

Your numbers

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Result

You keep $6,064
Gross side commission $11,550
Referral fee paid $2,888
Brokerage takes $2,599
Effective share of gross 52.50%
On a $11,550 side you pay $2,888 in referral and $2,599 to the brokerage, keeping $6,064, which is 52.50% of gross. Whether the fee comes off before or after the split matters more than people expect.

Referral fees are paid between licensed brokerages, not between agents personally, and the agreement should be in writing before the referral is made. Twenty-five percent is the common figure but it is negotiable, and relocation networks often charge considerably more.

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Questions

About this calculator

Does the order really matter?

Yes, substantially. A fee taken off the top is shared with the brokerage; taken after the split it comes entirely out of your share, which can be several thousand dollars of difference.

Who pays the referral fee?

The receiving brokerage pays the referring brokerage, typically at closing. Agents cannot legally pay each other directly in most states.

The formula

referral off the top reduces the base the split is calculated on; taken after, it comes entirely from your share

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