Buying a new construction home is exciting — picking finishes, watching it go up, moving into something nobody else has lived in. But here's what most buyers don't realize: builders budget for buyer agent commissions. If you don't bring an agent who returns that money, the builder keeps it.
With ShopProp's flat-fee model, your managing broker charges $4,495 and returns the rest of the builder's offered commission directly to you at closing. On a $600K new build, that's over $10,000 back in your pocket.
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Why You Need Your Own Agent for New Construction
The builder's sales agent works for the builder — not you. Their job is to maximize the builder's profit. Here's what your own managing broker does that the builder's agent won't:
- Reviews the builder's contract — these contracts are 30-60 pages written by the builder's attorneys, full of clauses that favor the builder
- Negotiates upgrades and incentives — builders often have flexibility on upgrades, closing cost credits, and rate buydowns that their own agents won't volunteer
- Monitors construction progress — catches issues during framing, plumbing, and electrical before they're buried behind drywall
- Manages the final walkthrough — creates a comprehensive punch list that ensures deficiencies are fixed before closing
- Protects your deposit — understands cancellation clauses, delay provisions, and material change language
ShopProp difference: Every ShopProp transaction is overseen by a managing broker — the highest license level in real estate. With a background in construction and finance, our managing broker catches structural and contractual issues that typical agents miss. On 4,000+ transactions since 2007.
How the Rebate Works on New Construction
Builders typically offer buyer agents 2-3% of the purchase price as commission. With a traditional agent, that entire amount goes to the agent. With ShopProp:
- 1Register your ShopProp broker on your first visit to the model home or sales office
- 2The builder offers buyer agent commission (typically 2-3% of the purchase price)
- 3ShopProp charges a flat $4,495 for full managing-broker service
- 4The difference is returned to you as a rebate at closing — applied to closing costs or as cash back
Real Savings on New Construction
| New Build Price | Builder Offers 2.5% | ShopProp Flat Fee | Your Rebate |
|---|
| $450,000 | $11,250 | $4,495 | $6,755 |
| $600,000 | $15,000 | $4,495 | $10,505 |
| $800,000 | $20,000 | $4,495 | $15,505 |
| $1,200,000 | $30,000 | $4,495 | $25,505 |
| $2,000,000 | $50,000 | $4,495 | $45,505 |
Those rebate dollars can cover upgrades you actually want — hardwood floors, a better appliance package, landscape — or simply reduce your closing costs and mortgage balance.
The Registration Rule: Don't Miss This
⚠️ Critical: Most builders require you to register your agent on your first visit to the model home or sales center. If you visit without an agent and sign the guest register, many builders will refuse to pay a buyer agent commission later. Always register your ShopProp broker before your first visit — even if you're "just looking."
Contact ShopProp before visiting any builder. We'll register as your representative so you're protected from day one.
What About Builder Incentives?
Builders often advertise incentives like "3% toward closing costs" or "$20,000 in free upgrades." Here's what most buyers don't know:
- Builder incentives and buyer rebates are separate. You can receive both — the builder's advertised incentive AND your ShopProp rebate.
- Incentives often require using the builder's preferred lender. Your managing broker can analyze whether the preferred lender's rate actually saves you money or whether a competitive rate from another lender plus your rebate is the better deal.
- "Free upgrades" aren't always free. Builders price upgrades at retail. Your broker can help you evaluate which upgrades add real value vs. which are cosmetic markups.
New Construction vs. Resale: Commission Comparison
| Scenario | Home Price | Traditional Agent Cost | ShopProp Cost | You Save |
|---|
| New Build — Buyer | $750,000 | $18,750 (to agent) | $4,495 | $14,255 rebate |
| Resale — Buyer | $750,000 | $18,750 (to agent) | $4,495 | $14,255 rebate |
| Selling Current Home | $600,000 | $18,000 (3%) | $4,495 | $13,505 saved |
| Buy New + Sell Old | — | $36,750 | $8,990 | $27,760 total |
The double transaction advantage: If you're selling your current home AND buying new construction, ShopProp saves you on both sides. One managing broker oversees both transactions — same flat fee each, coordinated timelines, no percentage markups.
5 Mistakes Buyers Make with New Construction
- Visiting without registering an agent first. The builder locks you out of buyer representation — and your rebate.
- Trusting the builder's agent to "handle everything." They work for the builder. Period. Their fiduciary duty is to the builder's bottom line, not yours.
- Skipping the independent inspection. Even new homes have defects. Builders' quality control varies widely. An independent inspector catches what the builder missed — or chose not to fix.
- Accepting the builder's contract without review. Builder contracts include arbitration clauses, delay provisions, material substitution rights, and cancellation penalties that heavily favor the builder.
- Using the builder's preferred lender without comparing. Builder-preferred lenders sometimes offer slightly higher rates in exchange for the "incentive." Your managing broker helps you compare total cost of ownership.
States Where ShopProp Offers New Construction Rebates
ShopProp is licensed in 8 states with active new construction markets:
- Washington — Seattle metro, Eastside, Tacoma, Olympia
- California — Bay Area, LA, Orange County, San Diego, Sacramento
- Texas — Austin, Dallas-Fort Worth, Houston, San Antonio
- Arizona — Phoenix metro, Scottsdale, Mesa, Chandler
- Colorado — Denver metro, Colorado Springs, Fort Collins
- Virginia — Northern Virginia, Richmond, Virginia Beach
- Michigan — Detroit metro, Grand Rapids, Ann Arbor
- Hawaii — Oahu, Maui, Big Island
Frequently Asked Questions
Can I use my own agent when buying new construction?
Yes. Most builders allow you to bring your own agent, but you typically must register them on your first visit to the model home. Builders budget for buyer agent commissions — if you don't bring an agent, the builder keeps that money. With ShopProp, your managing broker charges a flat fee and returns the difference as a rebate.
How much can I save buying new construction with ShopProp?
On a $600,000 new build where the builder offers 2.5% buyer agent commission ($15,000), ShopProp charges a flat $4,495 and returns $10,505 to you at closing. On a $1.2M home, that rebate grows to $25,505. The savings scale with home price.
Do I really need an agent for new construction?
Yes — and it's arguably more important than with resale. Builder contracts are written by the builder's attorneys to protect the builder. A managing broker reviews every clause, negotiates upgrades and concessions, monitors construction timelines, and ensures the final walkthrough catches deficiencies before closing.
What if the builder says they don't work with outside agents?
This is rare but does happen with some small builders. Most national and regional builders (Toll Brothers, Lennar, DR Horton, KB Home, etc.) routinely work with buyer agents and budget for their commission. If a builder refuses outside agents, that's a red flag worth investigating.
