Realtors commission on newly built homes

[wandamarshall005]

What percentage do The Villages realtors receive from the Villages? Is their percentage based on the entire sales price of the home, including added cost for customization?

[petsetc]

Terms - The Villages real estate sales agents are licensed by the state of Florida, they are not Realtors which is a National organization designation of which they are not members.

New houses are sold exclusively by The Villages real estate sales agents. In the 7+ years I've owned here and have been reading this and other places, I do not ever recall seeing what the actual amount/% the agents receive but based on the recent lawsuit involving a "rogue" agent, I would guess it's a lot.

It is also typical that the commission is based on the final sales price which is the case of The Villages new construction is not negotiable.

FWIW

[asianthree]

Pools are not included in their percentage.

[FMF Doc]

What percentage do The Villages realtors receive from the Villages? Is their percentage based on the entire sales price of the home, including added cost for customization?

https://www. **************. com/wp-content/uploads/2020/01/POV-sales-contract.pdf

[retiredguy123]

Terms - The Villages real estate sales agents are licensed by the state of Florida, they are not Realtors which is a National organization designation of which they are not members.

New houses are sold exclusively by The Villages real estate sales agents. In the 7+ years I've owned here and have been reading this and other places, I do not ever recall seeing what the actual amount/% the agents receive but based on the recent lawsuit involving a "rogue" agent, I would guess it's a lot.

It is also typical that the commission is based on the final sales price which is the case of The Villages new construction is not negotiable.

FWIW
Many of the Villages agents are experienced real estate agents, who were Realtors before working for The Villages. But, they cannot maintain their Realtor status because The Villages is not a member of the National Association of Realtors (NAR), a private organization.

[frose]

When I was looking village realtors were not sell homes, just lifestyles. There shouldn’t be a commission on lifestyle. The MLS agent I did eventually use was 5%.

[retiredguy123]

Whatever compensation The Villages pays to their agents is decided between The Villages and the agent. I would expect it to vary, based on the skill and experience of the agent. A highly experienced and competent agent is going to demand adequate compensation, or they will work somewhere else. When you buy a house, new or pre-owned, the commission is almost always paid by the seller.

[manaboutown]

Villages agents are incentivized to sell new homes. One told me of rides on the Morse Air Force private jets, dinners in the developer's private dining room and such. Most of us know that top performing sales people in many businesses get rewarded with trips to resorts, even European tours. Not that Villages agents receive trips to Europe...

[Dr Winston O Boogie jr]

The Villages agents get 1% of the sales price. I don’t have any information on upgrades. Aren’t they usually done by the owner after the sale?

[retiredguy123]

The Villages agents get 1% of the sales price. I don’t have any information on upgrades. Aren’t they usually done by the owner after the sale?
The builder offers a lot of upgrades that can be completed before the closing and added to the closing price.

I had 4 ceiling fans installed.

[Kenswing]

What percentage do The Villages realtors receive from the Villages? Is their percentage based on the entire sales price of the home, including added cost for customization? Is that really any of your business? Do you tell people how much you make when they ask?

[Keefelane66]

Is that really any of your business? Do you tell people how much you make when they ask?
The BEST ANSWER of the day!

[PJ_Smiley]

The Villages Real Estate Sale Agent commission schedule was released when the Developer sued the "rogue" agents.

On new homes, the agent gets 1.5% of the net income of sales price (less furniture, pool package, discounts, and closing costs). The % increases for the number of new homes sold by the agent: 1-19 = 1.5%, 20-25 = 1.75%, 26-31 = 2.0%, 32-37 = 2.25%, 38 up = 2.5%.

On resales: 1.5% sellers commission and 1.5% buyers commission, so if agent lists the home and sells the home, agent would get 3.0%. The agents pays a couple of minor fees.

The above is a few years old, so it may have changed.

[JMintzer]

The Villages Real Estate Sale Agent commission schedule was released when the Developer sued the "rogue" agents.

On new homes, the agent gets 1.5% of the net income of sales price (less furniture, pool package, discounts, and closing costs). The % increases for the number of new homes sold by the agent: 1-19 = 1.5%, 20-25 = 1.75%, 26-31 = 2.0%, 32-37 = 2.25%, 38 up = 2.5%.

On resales: 1.5% sellers commission and 1.5% buyers commission, so if agent lists the home and sells the home, agent would get 3.0%. The agents pays a couple of minor fees.

The above is a few years old, so it may have changed.

Those #s most certainly shoot down the claim that they "push new homes", as they can make MORE money on resales...

[jonathanb]

Ok I am a retired village real estate representative. The commission on new homes is less than you would make if you were an MLS agent selling homes. The difference is village real estate representatives work on volume. So you earn less per home but earn more per year because of volume of homes you sell. As for not being realtors. I was a realtor up north. It has zero to do with licensing and more to do with the status of belonging to an organization and receiving a designation.

[westernrider75]

I’m sure they earn every penny

[retiredguy123]

Just an FYI, some are Realtors.
I was told by a Villages agent that they are not allowed to be Realtors because The Villages (broker) is not a member of the National Association of Realtors (NAR). And, the only way to be a Realtor is if the broker who you work for is an NAR member. If some Villages agents are Realtors, then they may also be working for another non-Villages broker who is an NAR member.

[asianthree]

Ok I am a retired village real estate representative. The commission on new homes is less than you would make if you were an MLS agent selling homes. The difference is village real estate representatives work on volume. So you earn less per home but earn more per year because of volume of homes you sell. As for not being realtors. I was a realtor up north. It has zero to do with licensing and more to do with the status of belonging to an organization and receiving a designation.

Well said

[jimkerr]

Those #s most certainly shoot down the claim that they "push new homes", as they can make MORE money on resales...

Yes, and people saying they push new homes is a myth. My agent didn’t care what we purchased as long as we purchased something He showed us both new and resales.

[Tom Dumansky]

REALTORS are held to a higher standard with the Code Of Ethics enforced by the State and Nation Board of REALTORS. They can be fined and possibly lose their license if they are found in violation of the Code Of Ethics!

[dewilson58]

People.................The poster's first post (on the 26th) and has not been back.

Do you think he/she cares???

:oops:

[retiredguy123]

REALTORS are held to a higher standard with the Code Of Ethics enforced by the State and Nation Board of REALTORS. They can be fined and possibly lose their license if they are found in violation of the Code Of Ethics!
Yes, a licensed agent can lose his or her State license for doing something unethical. That would be done by the State board of licensing. But, it would not have anything to do with being a Realtor, a designation provided by the National Association of Realtors (NAR), which is a private organization that has nothing to do with issuing real estate agent licenses. All agents with a state license are held to the same ethical standards that are established by the state, with regard to holding and maintaining their license.

[msilagy]

I was led to believe 1.5% on NEW and 1% on PRE-OWNED. One reason many try to steer a buyer to new homes.

[Ken D.]

The Villages Real Estate Sale Agent commission schedule was released when the Developer sued the "rogue" agents.

On new homes, the agent gets 1.5% of the net income of sales price (less furniture, pool package, discounts, and closing costs). The % increases for the number of new homes sold by the agent: 1-19 = 1.5%, 20-25 = 1.75%, 26-31 = 2.0%, 32-37 = 2.25%, 38 up = 2.5%.

On resales: 1.5% sellers commission and 1.5% buyers commission, so if agent lists the home and sells the home, agent would get 3.0%. The agents pays a couple of minor fees.

The above is a few years old, so it may have changed.
Sure you don’t mean “net sales price”? If it were “net income”, that would mean something considerably lower.

[asianthree]

REALTORS are held to a higher standard with the Code Of Ethics enforced by the State and Nation Board of REALTORS. They can be fined and possibly lose their license if they are found in violation of the Code Of Ethics!

We filed a formal complaint, years ago, that was encouraged by other realtors, we got a letter that complaint was received. several agents, that knew the severe issues, told us there was no action was taken from the board or the person who owned the agency. Not even a slap on the wrist. Realtor is still working, with that so called “Code of Ethics” In TV have witnessed bold lies from Realtors, guess code of ethics has a grey area for some, or maybe they know fines or loss of license is few and far between

[Boston1945]

Is that really any of your business? Do you tell people how much you make when they ask?

Besides, it's a sign of the times. It's "TOP SECRET."

[retiredguy123]

We filed a formal complaint, years ago, that was encouraged by other realtors, we got a letter that complaint was received. several agents, that knew the severe issues, told us there was no action was taken from the board or the person who owned the agency. Not even a slap on the wrist. Realtor is still working, with that so called “Code of Ethics” In TV have witnessed bold lies from Realtors, guess code of ethics has a grey area for some, or maybe they know fines or loss of license is few and far between
Did you file the complaint with the State of Florida or with the National Association of Realtors?

[manaboutown]

Yes, and people saying they push new homes is a myth. My agent didn’t care what we purchased as long as we purchased something He showed us both new and resales.

It is no myth. My first Villages agent steered me to new homes only. He evaded showing me even one resale even after I had made numerous requests. Eventually I moved on to another agent.

[retiredguy123]

It is no myth. My first Villages agent steered me to new homes only. He evaded showing me even one resale even after I had made numerous requests. Eventually I moved on to another agent.
Interesting, but I would have moved on after making one request. I don't see how they can stop you from looking at their pre-owned listings.

[Dani & Bill]

wrong

[retiredguy123]

wrong
What is wrong?

[asianthree]

Did you file the complaint with the State of Florida or with the National Association of Realtors?

With the state, the association, and the agency realtor worked for. So all bases covered

[manaboutown]

Interesting, but I would have moved on after making one request. I don't see how they can stop you from looking at their pre-owned listings.

It was my first time to TV, a five day lifestyle visit. I spent most of my time driving around checking out the turf and meeting Villagers at restaurants and at the squares. It did surprise me that every time I checked in with him he just showed me another spec home. I had done a lot of research and wanted to look at existing homes in four villages near Sumter Landing. Oh well...

[MSGirl]

Ok I am a retired village real estate representative. The commission on new homes is less than you would make if you were an MLS agent selling homes. The difference is village real estate representatives work on volume. So you earn less per home but earn more per year because of volume of homes you sell. As for not being realtors. I was a realtor up north. It has zero to do with licensing and more to do with the status of belonging to an organization and receiving a designation.
Well said!

[TeresaE]

What percentage do The Villages realtors receive from the Villages? Is their percentage based on the entire sales price of the home, including added cost for customization?

The agents are independent contractors and their commission on new sales is 1.5% Out of that they pay all their own expenses. Tough way to make a living.

[Bogie Shooter]

The agents are independent contractors and their commission on new sales is 1.5% Out of that they pay all their own expenses. Tough way to make a living.

Nailing shingles on a roof in 90+ degrees is a tough way to make a living!

[Babubhat]

Why does it matter? Doesn’t affect the purchase price

[pdp07]

It amazes me how many answers you get from people that have no idea what they are talking about. I heard, a friend told me, my neighbor is a realtor (most people have no idea what a realtor is) a real estate agent told me, my cousins aunts brother in laws wife told me, ect.
The fact is it doesn't matter what they get paid, if you are pleased with their service, use them and if not get someone else to find you a home.

[cj1040]

Villages agents are incentivized to sell new homes. One told me of rides on the Morse Air Force private jets, dinners in the developer's private dining room and such. Most of us know that top performing sales people in many businesses get rewarded with trips to resorts, even European tours. Not that Villages agents receive trips to Europe...

They get a street named after them. Ex...Wilder Path, Sander St, Lazdowski Way etc.

[daddymac1127]

Doesn't have to do with licensing? To obtain a License one usually has to take and pass a test. There are certain rules and laws that need to be followed. I think what people are trying to say is if a Real Estate agent is not licensed that anything goes as far as following common practices and rules.

[retiredguy123]

Doesn't have to do with licensing? To obtain a License one usually has to take and pass a test. There are certain rules and laws that need to be followed. I think what people are trying to say is if a Real Estate agent is not licensed that anything goes as far as following common practices and rules.
Not exactly. An unlicensed real estate agent is breaking the law. You must have a state license to sell real estate on a commission basis.

[Dee Smith]

What percentage do The Villages realtors receive from the Villages? Is their percentage based on the entire sales price of the home, including added cost for customization?

As a buyer of a home from a Village sales agent, who represents me? It seems they represent The Villages.

[retiredguy123]

As a buyer of a home from a Village sales agent, who represents me? It seems they represent The Villages.
They definitely represent The Villages, not you.

[Ksfirefighter]

Whatever compensation The Villages pays to their agents is decided between The Villages and the agent. I would expect it to vary, based on the skill and experience of the agent. A highly experienced and competent agent is going to demand adequate compensation, or they will work somewhere else. When you buy a house, new or pre-owned, the commission is almost always paid by the seller.

But the question is who pays the seller?
Answer : The buyer

[merrymini]

Historically, on a 5 or 6 per cent commission, the break is 1/4 to the selling real estate agency, 1/4 to the selling listing realtor, 1/4 to the the buying real estate agency and 1/4 to the buyers realtor. That seems to be similar to the Villages. I have worked with many “realtors” and they can be the dumbest, laziest people around. It depends on the individual real estate agent and not the real estate they are associated with. All have to be licensed by the state and the “realtors” name is pretty meaningless in my experience.

[RICH1]

They make their money on the Turnpike wall Construction

[OhioBuckeye]

Same for us too!!

[Marathon Man]

So many experts. So little time.

[Bonanza]

When I was looking village realtors were not sell homes, just lifestyles. There shouldn’t be a commission on lifestyle. The MLS agent I did eventually use was 5%.

There is no such thing as a "Village Realtor." The Villages salespeople are only agents. The hype is that you are buying a lifestyle but yes -- the agents do get a commission.

If the MLS agent's commission (yes, that person was a Realtor) was a 5% commission, that 5% was split between the selling office and the listing office. The salespeople then got their split from their broker from the 2.5%.

[Bonanza]

We filed a formal complaint, years ago, that was encouraged by other realtors, we got a letter that complaint was received. several agents, that knew the severe issues, told us there was no action was taken from the board or the person who owned the agency. Not even a slap on the wrist. Realtor is still working, with that so called “Code of Ethics” In TV have witnessed bold lies from Realtors, guess code of ethics has a grey area for some, or maybe they know fines or loss of license is few and far between

It sounds like a piece or two of your story is missing. With whom did you file a complaint? That is the key, I think. First, you go to the broker of record of that office. Did you send a copy to the local Assn. of Realtors, the Florida Assn. of Realtors, Florida Dept. of Business and Professional Regulation? You probably missed a step or two. Who sent you the letter you received? How would other Realtors in the office know that no action was taken; it was none of their business???

If the situation was as "severe" as you say, being severe, the Realtor could have lost his/her license. The Realtors Code of Ethics does have teeth and penalties can be fines, suspension, or loss of license. Something is wrong with your version of what happened.

[Bonanza]

Historically, on a 5 or 6 per cent commission, the break is 1/4 to the selling real estate agency, 1/4 to the selling listing realtor, 1/4 to the the buying real estate agency and 1/4 to the buyers realtor. That seems to be similar to the Villages. I have worked with many “realtors” and they can be the dumbest, laziest people around. It depends on the individual real estate agent and not the real estate they are associated with. All have to be licensed by the state and the “realtors” name is pretty meaningless in my experience.

Regardless of the amount of commission, the amount is divided 50/50 between the listing office and the selling office unless a different arrangement was made when the listing was taken. From the 50% to each broker, the Realtor/salesperson gets his/her split from the broker which varies and is strictly between the broker and the Realtor.

There is NO set amount because that is against the Sherman Anti-Trust law!

[Bonanza]

But the question is who pays the seller?
Answer : The buyer

The buyer absolutely does NOT pay the seller!

The seller receives the proceeds from the sale after the commission and other fees have been deducted from the sale price.

[Bonanza]

I was told by a Villages agent that they are not allowed to be Realtors because The Villages (broker) is not a member of the National Association of Realtors (NAR). And, the only way to be a Realtor is if the broker who you work for is an NAR member. If some Villages agents are Realtors, then they may also be working for another non-Villages broker who is an NAR member.

The Villages would have to be a member of the local Assn. of Realtors in order to be Realtors. They are not members.
If you belong to the local association, you automatically become a member of the Natl. Assn. of Realtors.

Under no circumstances could a Villages agent be both a Realtor and a Villages agent.

[Bonanza]

The agents are independent contractors and their commission on new sales is 1.5% Out of that they pay all their own expenses. Tough way to make a living.

Nailing shingles on a roof in 90+ degrees is a tough way to make a living!

What a ridiculous comment! Are you serious?
Are you really comparing a roofer's job to that of a real estate agent?

A Realtor's costs can easily amount to a few thousand dollars a year.
There ain't no free lunch! (That's a figure of speech for wise guys comments!)

[dewilson58]

What )

Good Morning!!!

Welcome to the conversation.

[ThirdOfFive]

Good Morning!!!

Welcome to the conversation.
Interesting. Many hairs being split.

I know very little about the ins and outs of real estate buying and selling. But common sense tells me that if A) the shadowy presence known as “the Developer” is building new homes by the bushel, and B) it doesn’t do this”Developer” much good if those homes sit empty for any length of time, then C) of course said “Developer” is going to incentivize sales of the new homes. Pre-owned home sales merely represent transactions on properties ALREADY sold once by the “Developer”.

Seems as if the REAL money is on the new stuff.

[JMintzer]

I'm not sure, but I think that TV sales agents are not realtors...

Apparently, this is a HUGE issue that can make or break a sale.

Can anyone confirm, as I haven't seen anyone post about this before...

https://i.pinimg.com/originals/bb/fc/05/bbfc0505d138cd09a727fba22d753e39.gif

[retiredguy123]

I'm not sure, but I think that TV sales agents are not realtors...

Apparently, this is a HUGE issue that can make or break a sale.

Can anyone confirm, as I haven't seen anyone post about this before...

https://i.pinimg.com/originals/bb/fc/05/bbfc0505d138cd09a727fba22d753e39.gif
See Post No. 5.

It depends what you mean by the term "realtor". All Villages salespeople are licensed real estate agents, who are licensed by the State of Florida. They are not "Realtors" with a capital "R" because the Villages has chosen to not join the National Association of Realtors". But, anyone who sells real estate in Florida, whether they are a Realtor or not, must obtain the same license from the state.

[JMintzer]

See Post No. 5.

It depends what you mean by the term "realtor". All Villages salespeople are licensed real estate agents, who are licensed by the State of Florida. They are not "Realtors" with a capital "R" because the Villages has chosen to not join the National Association of Realtors". But, anyone who sells real estate in Florida, whether they are a Realtor or not, must obtain the same license from the state.

OH... MY... GOD...

Really? You could not sense the sarcasm, even with the attached gif???

Certain people seem to make it their life's work to continually remind us of this inane factoid...

My comment was directed to them...

[retiredguy123]

OH... MY... GOD...

Really? You could not sense the sarcasm, even with the attached gif???

Certain people seem to make it their life's work to continually remind us of this inane factoid...

My comment was directed to them...
Sorry, I didn't see the GIF because I am still using the old version of TOTV, like a lot of other posters.

Note, that if you had indicated that there was a GIF, I could have switched to the new version and viewed it.

[Ksfirefighter]

You miss my point.
All monies brought to pay every part of the transaction comes from the buyer.
Then monies are distributed from that contract to the agents from that sale.
The buyer pays all of the money.
The seller only gets the net after distribution of money from their agreed upon sales contract.
All money came from the buyer and not the seller!
Thats like saying you invite me over for dinner but I have to bring all of the food and you give some to your family and say you bought them dinner.

[dewilson58]

You miss my point.
All monies brought to pay every part of the transaction comes from the buyer.
Then monies are distributed from that contract to the agents agents from that sale.
The buyer pays all of the money.
The seller only gets the net after distribution of money from their agreed upon sales contract.
All money came from the buyer and not the seller!
Thats like saying you invite me over for dinner but I have to bring all of the food and you give some to your family and say you bought them dinner.

Some would say you miss the point.

If market value says the house is worth $300k.
The house will sell for $300k (humor me on the numbers).
The seller will get more net proceeds by not using a broker.
If a seller uses a broker, they will get less because they are paying the fee.

:ho: