Every buyer eventually asks the same question: “Do you know a good inspector? Roofer? Plumber? Mover?” A preferred vendor list is how a good agent answers it without scrolling through their phone in a panic. Here’s what belongs on one, how to build it, how to share it with clients, and the rules that keep it clean.
What a preferred vendor list is
A preferred vendor list is a short list of service providers an agent or brokerage has worked with and trusts, organized by the jobs that come up during a move. It’s not an ad directory and it’s not a guarantee. It’s a head start, so clients can call someone with a track record instead of picking a name out of search results.
Who belongs on a real estate vendor list
During the transaction
- Mortgage lenders (more than one)
- Closing attorneys (in North Carolina, an attorney handles the closing)
- Home inspectors, radon testers and termite (wood-destroying insect) inspectors
- Surveyors
- Insurance agents
Getting a house ready or fixing what the inspection found
- Handymen, general contractors, roofers, HVAC, plumbers and electricians
- Painters, flooring, landscapers and pressure washers
- Cleaners, stagers and photographers
After closing
- Movers, storage and junk removal
- Utility and internet setup contacts
- Locksmiths and security companies
How to build a list clients can actually trust
- Only list people you’ve worked with, or whose work you’ve seen on a client’s deal.
- Offer more than one option for each job when you can. Clients like choices, and it keeps the list honest.
- Check the basics: the right license where one is required (inspectors, contractors, attorneys), insurance, and how quickly they answer the phone.
- Ask clients for feedback after every job, and drop anyone who keeps getting bad reviews.
- Review it at least once a year. People retire, change companies and stop returning calls.
The best way to share a preferred vendor list with buyers and sellers
- Put it online. A web page or shared document is easier to keep current than a PDF buried in an email thread. You can see how we do it on our preferred real estate vendors in the Triad page.
- Organize by stage: under contract, before closing, after closing. Clients will find what they need faster.
- Send the right piece at the right time, for example inspectors the day the offer is accepted and movers once the closing date is set.
- Include a short disclaimer: clients are free to choose any provider, and they should get their own quotes.
The rules: referrals, not kickbacks
This is where a vendor list can go wrong. The federal Real Estate Settlement Procedures Act (RESPA) prohibits giving or accepting fees, kickbacks or anything of value for referring settlement-service business such as lenders, title and closing services. North Carolina Real Estate Commission rules also limit what a broker may accept from vendors in connection with a client’s transaction without the client’s written consent. The safe approach:
- Recommend vendors because they do good work, not because they pay you.
- Disclose any business relationship or compensation up front, in writing.
- Tell clients they’re free to use anyone they want.
Brokers with questions about a specific arrangement should check with their broker-in-charge or the NC Real Estate Commission.
Frequently asked questions
Do I have to use my agent’s preferred vendors?
No. A vendor list is a recommendation. You can hire anyone you choose, and it’s smart to get more than one quote.
Can agents get paid for vendor referrals?
For settlement services like lenders and title, RESPA prohibits referral fees and kickbacks. For other vendors, North Carolina rules still require the client’s written consent before a broker accepts anything of more than nominal value. When in doubt, don’t accept it.
How many vendors should be on the list?
Enough to cover the common jobs, usually two or three options for each. A short list you trust beats a long list you don’t.
Buying or selling in the Triad? Talk to a Mantle Realty agent, and we’ll share the vendors we trust for every step. Agents thinking about their next brokerage can also see our real estate agent resources.
