Activate your Real Estate License

Supercharge Commissions via New Home Builders April 18, 2023

Are you a real estate agent looking for a new opportunity to increase your earnings? If so, you might want to consider referrals for new home construction. As a referral associate for Firelight Realty specializing in new home construction, you have the potential to earn higher commissions than on a typical residential transaction.  This means that you can earn more money for each referral you make compared to standard referrals. However, there are certain steps and requirements that you need to follow to ensure that you maximize your commission earnings.

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When we say Supercharge Commissions, we mean typically a couple of points higher than a standard residential commission. We have also seen 6 – 8 percent. It can even go higher, or additional incentives  can be added.

In this article, we will discuss the specific process and requirements for registering a buyer referral with a new home builder. We will also provide tips and insights on how you can effectively work with new home builders to increase your commission earnings.

To register a buyer referral with a new home builder, you need to follow a specific process and meet certain requirements. 

Step 1: Visit the Model Home with the Potential Buyer

Sometimes, you may need to visit the model home with the potential buyer to get them interested in buying from the builder. This is especially true if the buyer is not familiar with the builder or their work. By visiting the model home, you can showcase the builder’s work and help the buyer make an informed decision.

Step 2: Register Your Brokerage with the Builder’s In-House Sales Associate

Once the potential buyer is interested in buying from the builder, you need to register your client’s information and your association with Firelight Realty with the builder’s in-house sales associate. This is important because it ensures that you receive credit for the referral and that you can earn commission on the sale.

Step 3: Hands-Off Approach for Referral Associate

After registering your client and documenting your status as a Firelight Realty associate, the builder’s sales associate takes over using their own complex contract and addenda. As a referral associate, you are then hands-off. This means that you don’t typically need to be involved in the rest of the sales process. Instead, you can focus on finding more potential buyers and making more referrals.


Q: How do I find potential buyers for new home construction?

A: You can start by networking with builders, mortgage agents, attending open houses, and reaching out to your existing clients to see if they are interested in new home construction.  Many builders will offer agents the opportunity to host open houses in their new construction homes as well.   

Q: Can anyone become a referral associate for new home builders?

A: Generally, most builders are willing to work with licensed real estate agents as referral associates.  Each builder has their own set of criteria they use.  This may include being a licensed real estate agent, having a certain level of sales experience, or meeting other qualifications. It’s important to check with the specific builder to determine their requirements.

Q: How much commission can a referral associate earn on a new home sale?

A: Commission rates can vary depending on the builder and the specific property. However, it’s common for builders to offer 3-6% commission with commissions sometimes reaching 8%-10.  Referral associates may earn a flat fee or a percentage of the sale price, depending on the builder’s policies.

Q: Do referral associates have to be present during the sales process?

A: No, referral associates are generally not involved in the sales process beyond registering the buyer with the builder’s sales associate. The builder’s sales associate handles the complex contract and addenda process and communicates directly with the buyer.

Are you interested in actually experiencing how to  Supercharge Commissions with New Construction? Learn about these opportunities and others available at Firelight Realty, join and get started today!