New Construction/ Builders
Question for agents working with new construction in Texas: how are builders currently handling buyer’s agent commissions? Are most still offering compensation, or are you seeing more situations where it needs to be negotiated as part of the contract?
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We have worked with many builders in the Houston area and they are all paying our compensation. There is only one that get's silly every now and then.
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My personal experience working with high rise in downtown Houston
My personal experience working with high rise in downtown Houston
From my experience in the Houston market right now, most builders are paying strong commissions, typically around 3 to the buyers broker, and in many cases offering additional bonuses depending on the community or inventory they are trying to move. Some builders also allow agents to redirect part of their commission to the buyer as an incentive, which is why it is important to have that conversation with your client before registering them with a builder.Unlike traditional resale transactions, large tract builders usually do not negotiate much on price. Instead, they compete through incentives. Right now many builders are offering upgrade credits, interest rate buy-downs sometimes as low as 3.99 with around 4.99 being more common, and closing cost assistance. Because these incentives can change frequently, it is always a good practice to reach out to the builder or their sales team first to confirm their current commissions and buyer incentives before bringing your client into the community. In most cases builders are still paying a minimum of about 3 to the buyers broker.
The smart builders always offer Commissions to the Buyer's Agent, so that the Buyer has representation. However, there are a few who don't. Absolutely call the salesperson before showing your Clients. Cervelle Homes has not offered Commissions in the past. Be careful with that builder. They appear to be offering it again, but always check first.
In my personal experience almost all large new home builders (MOST big name builders) are paying commissions (typically 3 and some still offer BTSA) without negotiating it into the price. ALWAYS ask the builders' sales representative and they will tell you. I've recently closed and are under contract with a couple of clients with new home builders and they have paid and are paying BAC and BTSA. I had no need to negotiate my commission with sales price of home. I also worked for a couple of new home builders after the NAR settlement and they also paid BAC without negotiating it into the sales price. I hope this helps.
Most home builders require that you either register your client on the first visit or prior to their first visit in order to qualify as procuring cause and receive a commission. Every builder offers different incentives for both clients and agents so its best to check with them when you register your client prior to visiting.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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