New Construction/ Builders

From my experience in the Houston market right now, most builders are paying strong commissions, typically around 3 to the buyers broker, and in many cases offering additional bonuses depending on the community or inventory they are trying to move. Some builders also allow agents to redirect part of their commission to the buyer as an incentive, which is why it is important to have that conversation with your client before registering them with a builder.Unlike traditional resale transactions, large tract builders usually do not negotiate much on price. Instead, they compete through incentives. Right now many builders are offering upgrade credits, interest rate buy-downs sometimes as low as 3.99 with around 4.99 being more common, and closing cost assistance. Because these incentives can change frequently, it is always a good practice to reach out to the builder or their sales team first to confirm their current commissions and buyer incentives before bringing your client into the community. In most cases builders are still paying a minimum of about 3 to the buyers broker.