Understanding Referral Fee Calculations

💡 Summary

This article clarifies how HomeStory calculates referral fees.
 

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✅ What Is Included in the Gross Commission?

HomeStory calculates the referral fee based on the total gross income, including brokerage fees, which includes:

• Standard commission (e.g., 2.5% or 3% of the purchase price)
• Broker-admin fees
• Transaction fees (whether labeled separately or not)
• Bonuses or additional earnings noted on the closing disclosure (ALTA)

Important: The referral fee is not calculated solely on the commission percentage stated in the MLS or listing agreement.

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📌 Example Scenario

Let’s say:

• Home purchase price = $336,000
• Commission rate = 3%
• Gross commission = $10,080
• Transaction fee paid to broker = $395

Total Gross Compensation = $10,080 + $395 = $10,475

If the referral fee is 40%, HomeStory is owed: $4,190

$10,475 × 40% = $4,190.00

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We appreciate your partnership and your diligence in closing transactions with our mutual customers. Please always review the full payment structure at closing and let us know if you need assistance reconciling your referral fee.

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