Cathy’s clients ended up buying at one of the new home subdivisions I accompanied them to on Sunday. She was tied up today, too, so I went back with them to reserve the lot and go over the contract (more of that tomorrow). I almost never sell builder homes, but this was my second one this week. Go figure.
The price was even sweeter today than it was on Sunday. The builder is trying to close on absolutely every inventory home by the end of the quarter, September 30, so they’re Making Deals, as they say down at the new car dealership. They’re basically giving my buyers a $75,000 upgrade package for free, plus throwing 6% of the purchase price at their down payment. If the Phoenix real estate market gets back to normal soon, they will have a ton of equity fairly quickly. And even if not, this home is an incredible bargain — an unrepeatable opportunity.
Here’s the kicker: The builder’s rep told me in private that the buyer’s agent’s commission is 8%! Unbelievable! I don’t know what builders are like in other markets, but in Phoenix, they leave precious little room for a Realtor to effect any meaningful buyer’s agency. In effect, taking a party to a new home subdivision is a referral, and that could explain why so many builders and Realtors treat it that way. For my part, I’m going to do everything I can to defend and protect my clients’ interests — and that still won’t be very much.
So how much should I get paid for doing not very much work as capably and professionally as I can? Surely not 8%. I won’t even take 3% on new construction. Here’s what I did today: I gave my clients 6% and kept 2% for the brokerage. Even then I’ll make great money for my efforts. But my clients will get an even more incredible bargain…