I just read a post written by Renee Keshishian that discussed her builder wanting to pay the buyers' agent an addition commission to encourage more showings. In my opinion, it's not a good business decision. I didn't link it because it was to members only.
By offering a buyer agent a commission split well in excess of what the listing agent is making, the builder is relaying a sense of urgency. There is always a sense of urgency in selling property, especially in this market, but there is a limit as to how severe you want that urgency to appear!!
A high commission split may appear that the builder is desperate for a sale and could result in very low offers. If more activity is required, the price should be adjusted downward to open the door to more buyers. A buyers' agent will gladly show and sell a new home that is priced properly without having to see an outrageously high commission split.
Paying a buyers' agent for selling a new home should be no different than selling a resale home. The urgency is present in both types of properties, and price is always the determining factor as to which property sells faster. Agents who list new construction should discourage their builders from offering bonus or excessive commission to the buyers' agent. It's counterproductive.
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