When Do Realtors Get Paid on New Construction

When it comes to buying a new construction home, many people wonder about the role of a realtor and how they get compensated. Unlike traditional home purchases, where realtors are typically paid through the commission from the seller, the payment process on new construction can be quite different. Let’s dive into the world of real estate and understand when realtors get paid on new construction.

In most cases, realtors representing buyers in new construction transactions get paid through the builder’s commission. Builders usually set aside a specific percentage of the home’s sale price as a commission for realtors. This means that the realtor’s payment is built into the price of the home, and the builder covers the cost. However, it’s important to note that this doesn’t mean the buyer pays more for the home; the commission is a separate expense for the builder.


1. Does using a realtor add to the cost of a new construction home?
No, the commission for the realtor is typically included in the price set by the builder.

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2. Can I negotiate the realtor’s commission?
The realtor’s commission is usually set by the builder, and it’s not negotiable. However, you can always discuss it with your realtor and see if there are any potential options.

3. What if I don’t use a realtor for my new construction purchase?
If you choose not to use a realtor, the builder’s commission will typically remain the same. In this case, the builder will simply retain the commission as additional profit.

4. Can I choose any realtor to represent me in a new construction purchase?
Yes, you have the freedom to choose any realtor you prefer to represent you in a new construction transaction.

5. Will using a realtor slow down the new construction process?
No, having a realtor representing you can help streamline the process and ensure all necessary paperwork and negotiations are handled professionally.

6. How do realtors assist in new construction purchases?
Realtors can help you navigate the complexities of the new construction process, negotiate contracts, and ensure your best interests are represented.

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7. How do I find a realtor experienced in new construction?
You can start by asking for recommendations from friends or family who have recently purchased new construction homes. Additionally, do some research online and interview potential realtors to find the one who specializes in new construction transactions.