Common compensation structure
In many new-construction transactions, a builder or seller may offer compensation to a cooperating buyer's brokerage. The amount and terms can change by community or transaction. A buyer's written representation agreement should explain the agent's compensation obligations and how any seller- or builder-offered amount is applied.
Common misconceptions
- Having a buyer's agent does not automatically increase the builder's advertised purchase price
- Going without an agent does not mean the builder will automatically reduce the price by an equivalent amount
- Builder compensation offers are not universal and should be verified for the specific transaction
- Representation duties and compensation are established by the buyer's written agreement with the brokerage
How New Home Hero is compensated
New Home Hero may receive a referral fee from the participating brokerage when a referred transaction closes, where permitted by law. Buyers are not charged a separate New Home Hero referral fee for requesting a match. The participating agent and brokerage remain responsible for disclosing representation and compensation terms to the buyer.
What to confirm before committing
- The amount or method of compensation stated in the buyer agreement
- Whether the builder is offering cooperating-broker compensation for the specific home or community
- What happens if the builder's offer is lower than the amount in the buyer agreement
- Any transaction-specific credits or concessions and how they affect closing economics
Expert review
Reviewed by Scott Russo, a real estate broker with 20+ years in the Charlotte market, and Nicole Russo, a licensed real estate agent and co-founder who developed New Home Hero's agent-vetting and matching system. About New Home Hero