Does real estate agent get commission if we decide to build?

conger19 · August 2013

Hey everyone! We have been looking for a home for almost a year... We have been dealing with short sales (3 contracts) that just keep falling through. The more we think about it, we are settling on the short sales that in the end will be a lot of work before we could even move in (more waiting time & $$). We are thinking about taking the opportunity to build however we are worried that our real estate agent will be left in the dust should we go that route... Is this true? We would hate to do that to her after she has been very prompt with her services and great working with us and our crazy schedules.

moonprincessd · August 2013

Real estate agents only get paid if you buy a home. If you decide to build, she gets no commission. It's just how the job works. They know that and hence why they LOVE referrals! The more people they have looking for houses, the more potential for them to get paid.

If you decide to build, I would maybe give her a nice thank you letter telling her how nice and helpful she was even though you decided to build instead. If you really feel guilty or if she was just that nice, then a gift card to some place she likes could be included. Otherwise, referring someone else you know looking for a home to her, would be the best gift.

mgarza1231 · August 2013

It depends if you are building with a company in a subdivision or if you will be hiring a general contractor and purchasing a plot of land. The builders we are buying from not only pay a percentage of closing costs but they also will pay the rea's commission.

MommyLiberty5013 · August 2013

In my experience, if you're working with an REA and s/he shows you any model homes or takes you to new subdivisions to meet with a sales agent there, than yes, s/he gets commission, which the sales/building office has to pay. This is what happened with our first home. We looked at existing properties and didn't see anything, so we went the new build route after our REA took us to a neighborhood.

mcskatcat · August 2013

I was actually listening to some talk radio about this just yesterday. Yes, they still get a commission, but there is a huge list of pros to using a REA during this process. Face it - unless you've built before, you probably don't necessarily know what you're doing. A REA can still help negotiate with the building company and see that you're not being taken advantage of, and similarly they can be very helpful during the design process because they've been there and done that.

Lastly, I give this advice to lots of people who are either buying or selling, but now is not the time to be cheap. You're better off spending the money for quality home inspections (not in your case), REAs, attorneys, so on and so forth than you are by skimping on those things because you will get what you want, and your butt will be covered when something goes awry.

Does real estate agent get commission if we decide to build?

Re: Does real estate agent get commission if we decide to build?

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