New Construction buyers agent commission (Miami, Pembroke Pines: sales, real estate, condos)

[Illinoisblows]

What is typical commission structure from builders on new homes - Do most/some agents offer a refund of any portion and what is typical split ?



I be knowing there are some agents on this board

[JPrzybylski07]

Depends on the builder and what they offer as far as a buyer’s commission. I don’t think any agents including myself would volunteer a refund of a portion of the commission, however if the client brought it up I would have no choice but to negotiate that.

[Marc Middleton]

Lennar (in most communities, some have dropped to lower amounts) and Pulte are usually 3%. If the home is closer to completion, sometimes 4%. New condos could be as high as 6% or 4% with 2-3% bonus to the agent at closing.
Most agents don't refund their commissions. At a 4% or higher developer, I wouldn't mind buying the buyer a 4 year extended warranty ($600-$800 usually). Normally I don't spend more than $50-$100 on a closing gift. However the extended warranty helps me because if they want to sell it, we have a leg up on the competition!

[Sandsam]

Commissions average 3% on new construction. DR Horton offers 5% on some of their communities! Lennar, bless their sweet souls, is commonly offering 2%.

I do not rebate commissions generally. My closing gifts are $100 to $250 or a $500 home warranty, depending on the situation.

[Marc Middleton]

Originally Posted by Sandsam

Lennar, bless their sweet souls, is commonly offering 2%.

Yes, its very sad they got cheap on us. in 2018, I sold a townhome in Pembroke Pines with 4% commission. In 2020 before Covid, I sold a townhome in Miami Lakes for 2.5% commission and they were changing to 2% going forward!

Meanwhile the CEO sold his Star Island mansion for a gazillion dollars

[markjames68]

Originally Posted by Marc Middleton

Yes, its very sad they got cheap on us. in 2018, I sold a townhome in Pembroke Pines with 4% commission. In 2020 before Covid, I sold a townhome in Miami Lakes for 2.5% commission and they were changing to 2% going forward!

Meanwhile the CEO sold his Star Island mansion for a gazillion dollars

Just curious - why should an agent get 4% for new construction and when all the info is easily available online or through the onsite builder salesperson?

[JPrzybylski07]

Originally Posted by markjames68

Just curious - why should an agent get 4% for new construction and when all the info is easily available online or through the onsite builder salesperson?

I’m curious too. I’m a fairly new agent and can’t answer your question too confidently.

Speaking from my first hand experience of course every situation is different. I had clients make an offer and get a mid construction under contract out in the estates earlier this year. Before that we must have looked at least 20 homes the prior month or two before getting the mid construction under contract.

I also brought my own general contractor out before we made an offer on the mid construction just to check things out since the builder wasn’t a major player like Pulte, Stock, etc.

I still had to meet the inspector two different times. I still had to make sure as the agent the additional terms we added to the regular residential contract were looking out for the buyers.

We were putting a price on something that wasn't complete so there was a lot of vulnerability the buyer’s were taken on if we didn’t spell everything out such as what type of fixtures, brand names, etc.

We didn’t really get much off the listing price, but I fought for them as best I could.



As a young Millennial, without a doubt I definitely see real estate agents in the future having a much harder time staying relevant to the transaction. Most agents just have a transaction relationship with the client meaning the agent really is representing the transaction and are basically just messengers.

The hardest thing about this profession as a real estate agent is managing our self serving bias and agenda.

[Thundarr457]

Originally Posted by markjames68

Just curious - why should an agent get 4% for new construction and when all the info is easily available online or through the onsite builder salesperson?

That is an excellent question. IMHO, the agent should stay with you and advise you on price, rebates, what options are worth getting, advise about lot premiums and potential resale. They should also help you with the day long finishes choices. Maybe not the whole day but at least an hour or so. That has not been our experience, but I think it should be for others.

[Richard818]

Originally Posted by markjames68

Just curious - why should an agent get 4% for new construction and when all the info is easily available online or through the onsite builder salesperson?

Builders pay realtors on new construction not for the work they put in but because they want the realtor to drive customers to them. No commission to realtor would mean less homes sold for builder and longer time frame for completing project.

[JPrzybylski07]

Originally Posted by Thundarr457

That is an excellent question. IMHO, the agent should stay with you and advise you on price, rebates, what options are worth getting, advise about lot premiums and potential resale. They should also help you with the day long finishes choices. Maybe not the whole day but at least an hour or so. That has not been our experience, but I think it should be for others.

What options the agent thinks are worth getting is irrelevant and subjective. Speculating on resale value is also irrelevant and a waste of time because agents nor anyone can accurately predict the market. Agents aren’t economist, we are sales people, our main agenda is to make a deal happen.

Rebates would clearly be advertised already from the builder.

There isn’t much smoke and mirrors in new cookie cutter communities about price. Most buyers will already have a price in mind, regardless of what the agent says.

My point being is it’s harder to stay relevant to the transaction and it was an excellent question from Mark James.

Without the builder offering a commission yes they would sell slower. That’s really the simple answer why there is even commission offered at all for realtors.