New construction homes are supposed to be simple. No bidding wars. No inspection surprises. The builder handles everything from permits to paint colors. So why are buyers still paying their agent $25,000 or more in fees?
Because the percentage model does not care how much work your agent actually does.
The New Construction Fee Problem
When you buy a $1,000,000 new construction home through a traditional agent charging 2.5%, you pay $25,000 in agent fees. But here is what that agent actually does on a new build:
- Writes the offer (the builder's contract, not a custom one)
- Attends a few walkthroughs
- Reviews the builder's disclosures
- Shows up at closing
That is roughly 10 to 15 hours of work for $25,000. Compare that to a resale transaction where the agent coordinates inspections, negotiates repairs, manages appraisal gaps, and navigates competing offers. The work is dramatically less, but the fee stays the same.
What a Flat-Fee Buyer Agent Saves You on New Construction
With ShopProp, you pay a flat fee instead of a percentage. Here is what that looks like on new construction:
| Home Price | Traditional 2.5% | ShopProp Flat Fee | Your Rebate |
|---|---|---|---|
| $500,000 | $12,500 | $1,995 | $10,505 |
| $750,000 | $18,750 | $3,995 | $14,755 |
| $1,000,000 | $25,000 | $4,995 | $20,005 |
| $1,500,000 | $37,500 | $4,995 | $32,505 |
| $2,000,000 | $50,000 | $7,995 | $42,005 |
| $3,000,000+ | $75,000+ | $7,995 | $67,005+ |
That rebate comes back to you at closing as cash in your pocket.
Three Things New Construction Buyers Get Wrong About Agent Fees
1. Thinking the builder pays your agent fee. After the NAR settlement in August 2024, buyer-broker agreements changed everything. You are now responsible for your agent's fee. Even if the builder offers a co-op commission, you still sign an agreement locking in a percentage. A flat-fee agreement means you keep the difference.
2. Assuming all agents provide the same new construction service. Most agents walk you through a model home and hand you the builder's contract. A managing broker reviews the builder's warranty terms, checks the CC&Rs, verifies the lot premium is market-rate, and ensures your deposit is protected. ShopProp's Rob Luecke is a managing broker with 19 years of experience and over 4,000 closings. That is not the same as a sales agent who got licensed last year.
3. Not reading your buyer-broker agreement before visiting the model home. Builders often require you to register with an agent on your first visit. If you sign a percentage-based buyer-broker agreement before walking in, you have locked in that fee for every home in that development. Three things to check before signing: What is the fee structure (percentage or flat)? Can you cancel if the service is not what you expected? Does the fee increase if the home price goes up during construction?
Why It Matters More on New Construction
New construction prices often increase during the build process. Upgrades, lot premiums, and market appreciation can push a $900,000 home to $1,100,000 by closing. With a percentage agent, your fee just jumped from $22,500 to $27,500 without any additional work. With ShopProp's flat fee, your cost stays at $4,995 regardless.
That $200,000 price increase should benefit you, not your agent.
The Atherton Example
ShopProp handled a $10.2 million home purchase where the buyers received over $247,000 in rebates. On new construction at that price point, the traditional agent fee would have been $255,000 for work that is objectively simpler than a competitive resale transaction.
ShopProp Buyer Fee Tiers
- Under $700K: $1,995 to $5,995
- $700K to $1M: $3,995 to $6,995
- $1M to $2M: $4,995 to $7,995
- Over $2M: $7,995 flat
Every tier includes full managing broker representation. Not a referral. Not a junior agent. The same level of service, for a fraction of the cost.
Licensed in 8 States
ShopProp serves buyers in Arizona, California, Colorado, Hawaii, Michigan, Texas, Virginia, and Washington. Whether you are buying new construction in a Phoenix master-planned community, a Bay Area development, or a Seattle suburb, the flat-fee model works the same way.
As cited by NPR, USA Today, and the New York Post, the shift away from percentage-based commissions is accelerating. New construction buyers have the most to gain because the gap between what the agent does and what the agent charges is widest on new builds.
Calculate Your Rebate
Use the ShopProp Savings Calculator to see exactly what you would keep on a new construction purchase.
Learn more about what a managing broker does differently and how buyer rebates work.
Rob Luecke Jr is part of the ShopProp team, a flat-fee brokerage serving buyers and sellers across 8 states since 2007.