Fast forward to today. Most expert builders such as the construction company dublin from Osholding services, are not only back to offering buyers agents the “normal” (3%) commission (also called a co-broke) but many have raised the co-broke to record levels, particularly on spec homes. Here’s a sampling of mailings I’ve received in the last month:
Feb 7: An invitation to Realtors to view a new development where we can “Enjoy hors d’oeuvres & desserts, a wine & soda bar, autographs…”. Autographs???
Feb 8: “In the past two weeks, 50 more subdivisions have returned to the traditional co-broke!”
Feb 11: “Homes by Towne is Offering 4% Co-Broke on Specs and GREAT Buyer Incentives!”
Feb 13: “US Homes is offering 6% Co-Broke on Select Inventory Homes!”
Feb 23: “We stuck by Realtors all of 2005 with 3% Co-Brokes. Now offering 4% on 56 Specs in 22 Communities!”
Mar 1: “4% Co-Broke & Huge buyer Incentives By Courtland Homes”
And it goes on and on and on. So these builders and developers greedily sliced real estate agent’s pay checks to nothing, and jacked up their prices to buyers. Just six months ago they offered NO buyer incentives and turned people away. Now these same builders are all scrambling like feral cats after a rat to attract buyers. Agent incentives, buyer incentives, you name it. Heck, they’re wining and dining us just to get us to come out and LOOK at their new model homes!