Real estate practitioners are expressing concern about forging business relationships with relocation companies, particularly because their referral fees have surged to 35 percent or more of a practitioner's commission.

Practitioners believe the rising fees could have an impact on the services provided to buyers and sellers, as they would be more focused on a speedy sale.

"You won't have agents willing to work hard to market the properties, or they will cut corners and have assistants do the work with expected results," according to one Houston-based practitioner who asked to remain anonymous. "Ultimately someone is going to lose."

Practitioners also oppose "after-the-fact" fees, which are referral fees imposed on practitioners who are not on a relocation company's list of approved agents. If the practitioner refuses to pay the fee, the client could lose their relocation benefits. However, industry executives do not expect major changes in fee structures, as practitioners looking for business will agree to the fees; others,meanwhile, are willing to pay if an upscale home is involved, as their commissions will be greater.

--Inman News, Glenn Roberts, Jr.(02/13/07)