The short answer is no. This is true in almost all cases. Referral agents are bound by restrictions put in place by the licensing state and the brokerage where they hang their real estate license. Two reasons a referral agent might not show a property: (i) they are not required to carry E&O insurance and (ii) do not have typically have access to a Supra key.
Even when house hunting for yourself or a close family member, there is no exception. A referral agent is not permitted to show a property. That said, a referral license can be used to your benefit when shopping for yourself, as we discuss below.
State Showing Rules
If your state has a special status for referral licenses (e.g. New Jersey Referral Agents), there are restrictions on the types of activities you are allowed to engage in, but there are also considerable benefits to holding your real estate license in referral status.
Brokerage Showing Rules
Your independent contractor agreement or policies and procedures at your office often dictate how you are permitted use your real estate license. In exchange for the benefits offered to real estate referral licensees, you will likely be restricted to referring clients to the brokerage. In turn, the brokerage will refer the buyer or seller to an in-house agent. At General Referral, we encourage our referral agents to send their client to someone they trust will provide them with top-notch service. For areas our real estate agents aren’t familiar with, we have national network of vetted licensed professionals.
Exceptions to the Rule
In states where there is no separate referral status, some brokers may permit referral agents to show properties or sit an open house. One obstacle to showing a property is a Supra key subscription. This typically means that the agent is required to be a member of the local MLS, eliminating one of the cost savings of being a referral agent. If you are showing homes to clients, it might make sense to consider going the full service agent route?
Showing Yourself
As a referral agent, you will likely work with a full service agent when purchasing or selling a home. However, you are entitled to a reduction in the commission (equal to your referral fee, less the brokerage’s split) which can be applied towards your purchase of the home. Many referral agents opt to take the commission savings due to them as a seller credit at closing, where permitted. Check with your accountant.
If you’re planning to show homes, consider a full service license. If you’re looking to save on costs, while making money on the side, become a referral agent.
