Broker Commission

Question: I just talked to someone at the texas real estate commission, and I was told you can get a rebate back from the seller. In my case a new home from a builder, I’m not an agent or licensed, but I can still ask for ex. $10,000 back at closing as a rebate or take the 10,000 off the price. Obviously the seller has to agree, but I was not aware of this. It can’t be a commission, but a broker fee. What have other heard?

What does the $10,000 represent…selling office commission?

The builder usually has the 3% put aside in a marketing budget for an agent. Since we don’t use an agent, they usually take an additional 3% of our price. Instead of that, we wanted to get the 3% or the $10,000 back at closing for a rebate.


Here the commission on new construction is quite often less than commission on a single family residence.

That stands to reason as Builders deal in volume and are, therefore, looking for a lower commission from their Listing Agents.

The commission agreement, however, is made with the Listing Office.

If you’re going to represent yourself (hope you know what you’re doing)…you could always ask the Listing Agent if the portion that would normally be paid to the Selling Office could be applied to lower the sales price. If the Agents balks…suggest a lesser portion of the amount the Selling Office would normally be paid.

For instance (for the sake of argument): Let’s say the commission on a new construction project is 6% of the 1st $100,000 & 3% thereafter…the asking price is $300,000. That’s $12,000 in total commissions.

If the commission is split 50/50 between the Listing Office & the Sales Office…each side receives $6,000.

If you’re representing yourself (again, I hope you know what you’re doing)…you could always ask that the Sales Office Commission of $6,000 be applied to lower the asking price to $294,000. If the Listing Agent balks…ask, “how bout $5,000?”

Hope I’ve understood you correctly, and double check your state’s laws.