broker commission in new development
Started by anonymous
almost 19 years ago
Posts: 8501
Member since: Feb 2006
Discussion about
how much does a broker you bring to a sales office make when buying new construction?
usually they get half of the commission
half of 6% or half of 4% then if thier firm is marketing how is it split?
that is none of your business...why do you think you have the right to know how much money a person is making in their job????
To conclude, different companies pay differently. For example I can earn 4% on a sale while an approved broker who referred me the lead in the first place can earn an additional 5%. That's 9% my developer is willing to pay out! Partner with the top firms in your market.
So that means that a buyer shouldn't use their own broker (at least when buying a new condo development)?
If you choose to use a broker on the front end of your search you should involve that broker in whatever you buy. I believe that is quality business ethics. The market is so transparent you may not need a broker to find your next home, just a lawyer to certify the paperwork on the home you wish to buy.
what if you found the property? If you broker does a bad job they should get paid if you walk inyto a sales office?
Don't go under contract with a broker just to "look" at properties. If your broker is doing a bad job fire them. If you are interested in doing your own research- walking into sales offices- the sales agent shouldn't make you go under contract to review one of their listings. Just be clear that they work for the seller and not you.
If you find something you think you may want to purchase I still advise in getting representation for comps+ paperwork details. The excepting may be a new development. Developers are scrutinized pretty hard today before they are allow to sell on the open market.