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Typical New Home Sales Process: The home builder pays a certain designated and predetermined sales commission (3% to 6%) to the buyer’s Realtor® when it is sold regardless of the negotiated terms and sales price with any new home. If you have your own Realtor who represents your interests, then (1) the onsite agent agrees to split their builder paid commission with your agent (called a Realtor co-op split) or (2) The builder pays your Realtor from their separate advertising fund. This is a form of advertising to homebuilders, as it encourages Realtors to bring their buyers to the builders' new home subdivisions. The second is the more the typical process. If you don't have your own Realtor, the onsite agent or the builder retains this fee. It is not passed onto you as a savings on the home price. These funds are dedicated solely for the Realtor bringing a customer. Be savvy and don't let it this advantage go unused!
Note: Although the onsite agent may be courteous to you, it’s important to know that they represent the builder…not you. Be an educated consumer, protect yourself and don’t leave yourself vulnerable. |
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