By Mike Sunnucks | Rose Law Group Reporter
Some home builders are lowering brokerage fees they pay to real estate agents as strong demand and limit supplies continue to dominate the regional housing market.
That is according to Steven Hensley, advisory manager for real estate research firm Zonda.
Henlsey said some builders have reduced the fee they pay to buyers’ agents from 3% down to between 1% and 2.5%.
“We are seeing a couple of the major builders making that switch,” Hensley said.
He said the high buyer demand and limited new and resale home supplies are prompting the changes from some builders.
Hensley expects other builders to follow suit and lower fees paid to buyers’ brokers.
Builders continue to see strong demand stemming from low mortgage interest rates, a limited supply of resale homes (in part because of the COVID pandemic) and Arizona gaining new residents and businesses from California and the Pacific Northwest.
Hensley said the lower fees fit into the current market dynamics but do impact real estate agents.
“They do run the risk of alienating some agents in the future,” he said.