Are Realtors being used when buying a home from a builder?

Question

A co-worker of mine is in the beginning stages of buying/building a new house in a new development that is just now under construction and will be selling the house she lives in now. I was curious so I asked her how she found the realtor to list her current home and she said the builder. The builder recommended a realtor that will list her current house for 4% vs the going rate in central Ohio of 6%. So 3% going to the buyers agent and 1% going to the listing agent. I found this interesting and wondered if this is a common practice between builder and realtors.

Chris Carollo · Answer

I think this is a really interesting play from the builders perspective as other outlined above. I'd also recommend that you friend still does a home inspection with the new house.

Ryan Acker · Answer

Thanks for the replies!!

Russell Brazil · Answer

It is a good strategy by the builder. Create the illusion they are saving money on the listing fee for their property, while they likely get fleeced on the buy end from the builder. I was looking at some data recently on new construction sales in my area, and couldnt believe the disparity between the prices and subsidies when an agent was used, and when the buyer bought directly from the builder.

Jay Hinrichs · Answer

@Ryan Acker not common but a smart idea from the builder.

We list all our new construction on the MLS... last thing we want to do is alienate realtors they are the goose

Charlie Fitzgerald · Answer

Your co-worker friend is free to use whomever she wants to sell her house. Commission percentages and their splits are negotiable items by all parties as well.

Are Realtors being used when buying a home from a builder?

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