How Do I Become a Real Estate Referral Agent?
While many people might like to jump right into becoming a real estate referral agent, a person needs to fulfill the requirements for becoming a licensed real estate salesperson before he or she can become a referral agent.
Getting Your Real Estate License in New Jersey
Although the process to qualify as a real estate agent is similar in many states, every state has their own set of rules. To earn a license in New Jersey, an individual must complete the following steps:
- Be at Least 18 Years of Age
Along with being at least 18 years old, an individual must also be a U.S. citizen or permanent resident alien. The candidate must also provide proof of high school graduation or equivalent.
- Enroll in a Real Estate Pre-Licensing Course
An individual must complete a total of 75 hours of approved real estate education at a school licensed by the New Jersey Real Estate Commission.
- Pass the New Jersey State Licensing Exam
Once a person has finished the required education, he or she has a year to pass the New Jersey state exam.
- Find a Sponsoring Broker
Because a real estate agent cannot operate independently, he or she must act on behalf of a broker. For this reason, every salesperson must be licensed by a sponsoring broker.
Applying for Referral License After Passing State Exam
As soon as you pass the state licensing exam, you are eligible to apply for a referral agent license on your exam pass notice/license application. You and your broker may complete the necessary certifications on the license application form.
It is important to note that the state of New Jersey revamped the laws applying to real estate referral licenses in August of 2018. As a result, anyone who wants to remain or become a referral agent must hang their license with a referral only office that can receive and process the commissions generated from referrals.
Furthermore, a referral agent cannot continue to hold their license as either a salesperson or broker-of-record. In other words, you cannot act as both at the same time. Nonetheless, the process to change a license from salesperson or broker-salesperson to referral agent is fairly straightforward and can be completed online through online through their employing broker or broker of record.
The South Jersey Referral Network is a referral only agency and is fully compliant with these new laws. The benefit to joining our network is that if you are a referral agent based in Cherry Hill, NJ, we can match your referrals with qualified, licensed agents in the South Jersey area.
Can a Referral Agent Show Property?
To put it simply, no. A referral agent is not allowed to show property in New Jersey. Since there are no exceptions to this rule, a referral agent cannot show property even when house hunting for himself or a family member.
Advantage of Being a Referral Agent
By referring clients to active real estate agents, a referral agent earns a percentage of that agent’s commission that resulted from the referral. This option is perfect for those who may be looking to retire soon or who want to start a family and can no longer commit to the daily routine of listing and showing property. Being a referral agent offers them the opportunity to maintain a revenue stream from a network they may have spent years cultivating.
Developing Your Network
Once you are eligible to start working as a referral agent, your success will rest upon your marketing efforts. If you are a retiring real estate agent, you will have the advantage of an existing client database. You can also develop it further by adding anyone else you know who might be interested in buying or selling property such as family, friends and other associates.
To connect with potential clients through digital marketing, you could create a real estate blog or a Facebook page. Another way to find leads is by developing strong relationships with service providers such as contractors.
To get the most out of being a referral agent, it all comes down to how you can maintain and grow your network of people to refer.
If you are located in Cherry Hill, New Jersey or the surrounding area and would like to generate revenue from real estate referrals, contact South Jersey Referral Network to get started today.