Should Realtors Care About Selling New Construction?

Those that are in the real estate business should care about every aspect of the business that is going to generate an income. If they were to neglect the opportunity to sell new construction then they would be missing out on a substantial chunk of the target market that real estate agents cater to.

How Much Do Realtors Make on A New Construction Sale

commission calculator

Commissions paid on the sale of houses don’t come at a fixed rate. These are negotiable no matter what the circumstances of the sale are. Which also applies to new construction sales. However, in this situation, there are more people involved and the commission negotiations are handled in different ways. So there is no set amount that the realtor is going to make.

The Builders and The Agents

The builders are the owners of the new home build until it is sold. In many cases, the builders will have their own real estate agents onboard that look after all the legalities that come with selling a home. This is why so many buyers can go directly to a builder and buy direct from them without having to rely on the expertise of an agent to do all the paperwork and the legalities that come with home buying. The builder’s agent will act on the buyer’s behalf but their main interests will be towards the builder as in essence, they are working for them.

Who Pays The Realtor on a New Construction Sale?

Once the deal has been closed on the new construction sale all of the proceeds from the sale are discriminated against. This is done through the lawyers and they will make sure that the real estate on record for the sale gets the amount that was agreed upon for their commission.

The Independent Agent

If the buyer has insisted on using their own agent then this can create a variety of different circumstances.

One Option

There may be an option where the agent can negotiate some type of commission incentive with the agent for bringing a client to them. Quite often agents can negotiate these types of deals with builders prior to even bringing prospective clients. This would be a negotiation between the agent and the builder. The buyer would be subject to the agreement made when making the purchase of the home from the builder themselves which would be done through their agent.

Another Option

A written service agreement that is mandatory between an agent and their client could have additions added to it. This is where the buyer would agree to pay the agent a commission for their assistance. In this case, the buyer would be responsible for making this payment out of their own pocket upon closing.

It is very important for the buyer to have a full understanding of how the commission fees work so it is no misunderstanding.

Should Buyers Use An Agent For Buying a New Build?

How successful an agent can be in the selling of new builds depends a great deal on what the clients who are going to buy these know. A lot of new home build buyers don’t have any idea as to whether they need a real estate agent or not. In fact, a good number of them assume that they don’t. They just take it for granted that all of this is taken care of by the builders directly. Which it is but not necessarily totally good for the buyer.

Clients buying a new build should be aware that although they are not compelled to have an agent they are going to reap the benefits of them if they do.

Help With The Decision Making


As soon a buyer decides they want to buy a new home, they have some tasks ahead of them.


First, they need to decide on the location where they want to live. Then seek out what new construction is taking place there. This will be evident and finding the builder won’t be a problem. If the buyer is new to the area they are going to want to know more about the area itself as well as the home details. Agents representing the builder may not be as forthcoming with anything negative that could affect the sale. Whereas if the buyer has their own agent, this agent is going to look after their best interests. They will know the area and will share anything of concern with their client.


What can be a problem right the start is the credibility of the buyer.  A real estate agent working in the area has so many different contacts that they are usually well aware of a builder’s reputation. This is valuable information for those who want to buy a home that is built by a credible builder.


When buying a new home build the price is not fixed in stone. Negotiations do take place over pricing and other factors. It is ideal to have a realtor that can give sound advice in all of these. For example, an agent may recommend offering a lower price for a home that is in the middle of the complex perhaps in a less attractive area of the new home build division. Experienced real estate agents have a sharp eye for being able to see potential pitfalls. For example which of the new streets may run into more traffic congestion in the future.

The Extras

It is not uncommon for builder agents to attempt upsells during the initial planning stages. For example variances in materials and appliances. New buyers can get caught up in the excitement of the new home build purchase and get oversold on items that later they may realize they didn’t really need or didn’t justify the extra cost. Their own agent can help them to stay on track and think of these in a more realistic manner. With the end results the buyer getting a good deal for their money.

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