Commissions for RE Agents when buying homes from Builders
Hi all,
I am a new agent in California and was looking at purchasing a New Home from Builders such as Toll Brothers, KB Homes, etc.
This is a personal purchase for my family and primary residence.
How much is the acceptable commission I can expect from the Builders.
I keep getting different answers so thought will check with the community :)
Much appreciated in advance.
Regards,
Rish
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
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#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Every builder different....some might give you nothing, some might give you 2-3-4%, sometimes there is a difference if you are buying a home for yourself vs helping a 3rd party customer. Many builders stopped offering commissions a year or two ago, some have started back now.
Some don't offer it to principals in the transaction. They don't want people to go out and get a license just so they can get a discount.
My brokerage is the same way....you have to sell a couple to 3rd parties, before you can get your split waived by the brokerage, just to prevent people from coming in and trying to do one deal for themselves and quitting.
You just have to ask the builder that interests you.
I would try leveraging the fact that you could bring more buyers as an agent to them which could have value. Good luck and congratulations on the purchase
oh, and you could also try to get a year or so of no HOA fees if there are any :-)
@Ambarish Vitta I just did this for a client in the Inland Empire! I got 2.75% with the builder and we went heavy on seller credits for my clients and got it! Builders seem to be a little worried no one is going to buy their projects...
Just got one for my client and the commission was a flat fee of $20k. All new construction companies are different. This same company told an agent on my team that they didn’t give commission to agents a few months ago. I think they are hurting now.
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Real Estate Agent California (#02166235)
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Thank you guys for your valuable input. Looks like it depends on how good your Sales Pitch will be and also how the market is for the Builders to be able to give you a better deal. It does seem like good option to try and get Credits or extras such *** Year of No HOA etc - might work in this market :)