realtor + new construction + another state

[retire-early]

Early last year I was thinking about selling my house and buying another one nearby in a 55+ community. I had been working with a realtor before Covid hit.

Increasingly, I have been thinking about moving to the next state over.

I was told through email from the sales manager at one of the communities, that if my realtor wants to get her commission for the sale, I have to have her with me when I visit each of the communities.

Would she still get the commission since this is in another state?

 

[ExFlyBoy5]

Early last year I was thinking about selling my house and buying another one nearby in a 55+ community. I had been working with a realtor before Covid hit.

Increasingly, I have been thinking about moving to the next state over.

I was told through email from the sales manager at one of the communities, that if my realtor wants to get her commission for the sale, I have to have her with me when I visit each of the communities.

Would she still get the commission since this is in another state?

It should be spelled out in the agreement you made with the agent. It's tough to answer because there are different laws/rules for different states and is further complicated with multiple states/agents involved in the transaction(s).

 

[OldShooter]

The rule in our state is that the realtor who first walks across the threshold with the buyer is the one that shares the commission with the seller's realtor. I don't know if this is law, custom, or realtor association rule.

My guess is that realtors selling new construction are not used to splitting commissions, not enthusiastic about doing it, and will make it as difficult as possible. I suggest asking the question to your realtor if you feel some loyalty and want him/her to get a commission.

 

[retire-early]

I should make it clear that there is no other realtor involved.

The person telling me that my realtor needs to show up in person is the builder's sales manager. This is a community with several hundred homes.

 

[pb4uski]

... Would she still get the commission since this is in another state?

She might if she is licensed in both states and otherwise meets the criteria to earn the commission.

 

[MichaelB]

My guess is that realtors selling new construction are not used to splitting commissions, not enthusiastic about doing it, and will make it as difficult as possible.

This was definitely the case for our daughter and my brother, both of whom bought into newly constructed developments. In both cases the sales contracts had language that reduced the likelihood of a shared commission, and in DDs case she had to reimburse her agent, who agreed to a reduced fee.

My suggestion is to let the buyer's realtor be the first contact with the developer and be certain of the commission rules before making any other contact with the target development.

 

[OldShooter]

I should make it clear that there is no other realtor involved.

The person telling me that my realtor needs to show up in person is the builder's sales manager. This is a community with several hundred homes.

I believe that you'll find that this "sales manager" and his staff are indeed realtors. At least that’s the way it works around here. The developer selects a licensed real estate sales company to exclusively handle sales. YMMV, of course. Again, ask your realtor.

 

[brucethebroker]

1. Many states do not allow Realtors to get a commission unless they are licensed in that state. Realtors can, however, "refer" a buyer (without being licensed in the builders state) and receive a partial (25%?) commission.
2. Not unusual for builders to only allow commission if buyer is with Realtor on first visit. It is to discourage Realtors from trying to jump into the sale after a buyer has already met with the builder sales staff and started the process, (through no work from the Realtor). Sometimes the sales staff are licensed Realtors, sometimes they are only employees of the builder.