Zillow Advice: Buying Process - Commission on new construction?

I wonder what the original ...

Wed, 14 Mar 2012 03:33:00 GMT

I wonder what the original poster learned in the almost 2 years since posting the question?

It varies but keep in mind, ...

Wed, 14 Mar 2012 03:26:00 GMT

It varies but keep in mind, the builders agent represents the builder. You might not realize it but you do need someone in your corner. Your agent will earn their commission before it is said and done. Builders pay these fees as part of the package and it doesn't cost you no matter what anyone says. I have had more buyers need representation in these transactions than those who didn't. It's better to be safe than sorry. Good Luck!

Saying the builder pays the ...

Tue, 13 Mar 2012 16:15:00 GMT

Saying the builder pays the commission is the most ridiculous or naive thing I have heard. It's like saying the cost of advertising is paid by companies and has not impact on the COST of goods!

As Michael said that is a ...

Mon, 08 Nov 2010 16:12:00 GMT

As Michael said that is a rule and other important rule is that some new home builders simply and plainly refuse to allow you to be represented by an agent.
Call and ask questions before you go alone to any new construction, but I would make sure I go with my agent.

Most times 3% on the base ...

Sun, 07 Nov 2010 14:19:00 GMT

Most times 3% on the base price of the home and lot. Sometimes they pay on upgrades. Good luck.

The builder will pay your ...

Sun, 07 Nov 2010 05:19:00 GMT

The builder will pay your agents commission. Your agent will have to check you in or register you as a client in the builders sale office. In my market, I've seen builders pay 2.5% to 4%. Many builders are offering great incentive packages for buyers. Ask your agent for details.

All the best!

Ryan Smith

The realtor's commission ...

Sun, 07 Nov 2010 03:16:00 GMT

The realtor's commission is typically 3% which is always paid by the seller be it new or old construction. Neither buyer nor seller should be unrepresented in a realty transaction anymore than they should be unrepresented in a serious court case.

However you should find out if the new construction company deals with realtors; some refuse to do so and do not as a matter of their made up policy.This means you are not represented or if you are represented then if you already have a buyers agreement you will be personally responsible for your buyers agent commission. So make sure you know who you are dealing with and always be represented.

Congratulations Realtors. ...

Sat, 06 Nov 2010 21:04:00 GMT

Congratulations Realtors. In your effort to deceive the public in how you get paid ("buyers agency is free or at no cost to the buyer"), you have actually robbed a consumer of the ability to determine if one of your colleagues is being adequately paid for the services rendered, and correct the situation as they deem necessary.

Aside from Mike's honest answers and admissions of "I don't know", you have further debased the reputation of your occupation.

Most builders (new construction) ...

Sat, 06 Nov 2010 20:53:00 GMT

Most builders (new construction) listings in the greater Nashville area pay 3% to a buyers agent. It will depend on what is customary in that area. Different locations may have a slightly different compensation to a buyers agent. Ex- LA, California may have a different % than say Dallas, TX.

Well, apparently I should ...

Sat, 06 Nov 2010 20:41:00 GMT

Well, apparently I should have been clearer in why I asked the question. :)

We have a realtor, and I wouldn't dream of doing this without one. Car haggling I am qualified to do. New house haggling I am not.

I just asked because I wanted to have an idea how much my realtor would likely be paid. I always tip for good service, and my tip would be related to his commission, and also the discount he negotiates for me. If the commission was unusually low, I might tip more. No, he doesn't know he will get a tip.

Thanks for the info.