A better way to give referrals

What Happens After You Send a Referral? A Timeline from Introduction to Closing (And Your Payday)

This article demystifies the real estate referral process by providing a clear, step-by-step timeline. It covers what happens in the first 24 hours, how to track the referral’s progress using a dashboard like the one on GiveReferrals.com, what to expect at key milestones (e.g., under contract, closing), and exactly how and when you receive your 25% referral fee. The goal is to provide transparency and set clear expectations for both referring and receiving agents.

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You’ve done the hard part: you’ve nurtured your relationship with a past client, they’ve come to you for advice on a move, and you’ve carefully vetted and selected the perfect agent to handle their needs. You click “send” on the referral form, making the introduction. And then… what?

For many agents, the time between sending a referral and seeing a check can feel like a black box. A lack of communication and transparency can cause anxiety and undermine trust. But a well-managed referral process is a smooth, predictable journey. This article breaks down the typical timeline, so you know exactly what to expect from the moment you send a referral to the day you get paid.

The First 24 Hours: The Hand-Off

This is the most critical period in the referral process. A swift and professional hand-off sets the tone for the entire transaction.

  • 0-15 Minutes: The Introduction. When you submit a referral through a platform like GiveReferrals.com, an automated notification is instantly sent to the receiving agent. This email contains your client’s contact information, their needs, and a pre-drafted referral agreement.
  • 15-60 Minutes: The Receiving Agent’s Response. A top-tier receiving agent will acknowledge receipt of the referral immediately. They will also make their first attempt to contact you or your client within the first hour. Speed is key to impressing the client and showing you both are on top of things.
  • 1-24 Hours: The First Conversation. The receiving agent should have their first conversation with the client within one business day. Their goal is to build rapport, understand the client’s needs more deeply, and schedule a formal buyer or seller consultation.

As the referring agent, you should also send a quick text to your client: “Just wanted to let you know I’ve connected you with [Agent Name]. She’s the best in [City] and should be reaching out shortly!”

Week 1: The Consultation and Agreement

By the end of the first week, two key things should be accomplished:

  1. The Client Consultation: The receiving agent has met with your client (in person or via video call) and has a clear plan of action.
  2. The Referral Agreement: The receiving agent has signed the referral agreement and sent it back to you and your broker for signature. This legally binding document outlines the 25% referral fee and is essential for protecting your commission.

On GiveReferrals.com, this process is streamlined. The agreement is generated automatically and can be e-signed and stored directly on the platform, eliminating paperwork headaches.

Weeks 2-8: The Search and Transaction

This is the longest and most variable part of the process. The receiving agent is now actively working with your client, showing homes or preparing a listing. During this phase, communication is key.

  • Proactive Updates: A great receiving agent will provide you with brief, regular updates without you having to ask. A simple weekly email saying, “We saw three great properties this weekend” or “We’re preparing to list next week” is all it takes.
  • Dashboard Tracking: This is where a referral management platform is invaluable. Instead of relying on emails, you can log in to your GiveReferrals.com dashboard and see the real-time status of your referral: “Showing Homes,” “Under Contract,” etc. This transparency reduces the need for back-and-forth communication.

The Final Stretch: Under Contract to Closing

Once your client is under contract, the finish line is in sight.

  • Under Contract Notification: The receiving agent should immediately update you that the client’s offer has been accepted. The status on your dashboard will change, giving you a clear idea of the potential closing date.
  • Closing Day: On the day of closing, the receiving agent’s brokerage will process the commission. The 25% referral fee is then cut from the commission and sent directly to your brokerage, as outlined in the referral agreement.

Payday: How You Get Your Referral Fee

This is the moment you’ve been waiting for. The referral fee is always paid from one brokerage to another. It is illegal in most states for an agent to pay another agent directly.

  • Timeline: You can typically expect your brokerage to receive the referral check within 7-10 business days after closing.
  • Payment: Your brokerage will then process the payment and pay you according to your commission split.

Frequently Asked Questions (FAQs)

Q: What happens if the deal falls through?

A: If the transaction does not close for any reason, no commission is paid, and therefore no referral fee is due. The receiving agent should promptly update you on the situation.

Q: How long until I get paid after closing?

A: This depends on the processing times of both the receiving and referring brokerages, but 7-10 business days is a standard timeframe.

Q: What if the receiving agent stops communicating with me?

A: This is a major red flag. First, try to re-establish contact directly. If you are unable to, and you used a referral platform, contact their support team immediately. A good platform will intervene to ensure the terms of the referral agreement are being honored.

By understanding this timeline, you can move through the referral process with confidence, knowing that your client is being well-cared for and your commission is protected. Ready to send a referral through a transparent, trackable system? Start here.