Paying at closing or paying up front
Pay-at-closing programs send you a client and take a share of your commission when the sale closes. Paid ads take your money now and nothing later. Which one leaves you more depends on the price point, the fee, your split and how well you convert ad leads.
What the referral fee really costs
The fee usually comes off the full commission before your brokerage split, so part of it is money your brokerage would have taken anyway. On a $420,000 sale at 2.5%, a 35% fee is $3,675. At a 70% split it costs you about $2,573 per closing. Confirm the order with your broker.
Reported fees, as of October 2026
- HomeLight: about 33% of the agent’s gross commission.
- Zillow’s pay-at-closing program (Flex, now marketed as Zillow Preferred): 15% to 40% is the reported range. Zillow’s pricing page lists 40% on seller connections and says fees vary by market and price.
- Realtor.com ReadyConnect: about 28% to 40%.
- Redfin’s partner program: about 33% to 40%.
- Agent-to-agent referrals: often around 25%, and always negotiable.
Most of these companies don’t publish a percentage, so the figures come from agents’ reports and trade coverage. Your agreement has the real number.
The trade-off
Referral programs carry no upfront risk. Ads can cost less per closing, but you pay whether or not anyone closes, and the money goes out months before a commission comes in. Read pay-at-closing lead programs, explained before you sign an agreement.
Questions agents ask
Is a 35% referral fee worth it?
It can be. You pay nothing unless you close, and the fee costs you fewer dollars than its face amount, because part of it would have gone to your brokerage anyway. Compare it with what an ad-sourced closing costs you.
Is the referral fee taken before or after my split?
Usually before: the fee comes off the gross commission, and your split applies to what is left. Brokerages differ, so check your agreement.
How much is an agent-to-agent referral fee?
Fees of around 25% of the receiving agent’s side are often reported, but every referral fee is negotiable and is set in a written agreement between the two brokerages.