Short answer: It depends on the builder and on your agreement. Builders often offer compensation to buyer's agents, but it varies by builder and community, can change, and is negotiable. In Pennsylvania, how your agent is paid is set out in your written buyer agency agreement, signed before touring. If the builder pays less, you may owe the difference.
Builders often offer compensation, but it varies
Many builders in Cumberland, Dauphin, York and Perry counties offer compensation to buyer's agents as part of how they sell homes. It isn't a rule. Each builder sets its own approach, it can differ from one community to the next, and it can change. There is no standard amount, and compensation is always negotiable.
In Pennsylvania, your buyer agreement sets the terms
Since the 2024 industry practice changes that followed the NAR settlement, agents who are MLS participants need a written buyer agreement with you before you tour homes together, including model homes. That agreement spells out how much your agent will be paid, how, and what happens if a builder or seller pays less, or nothing. In many agreements, the buyer may owe the difference. Read that section carefully and ask questions before you sign.
What to ask the builder
- Do you offer compensation to buyer's agents in this community, and does it apply to the home I'm interested in?
- Do you have registration requirements, such as my agent being named at my first visit? (See do I need an agent for new construction?)
- Does having an agent change the price or incentives available to me?
- Can it be confirmed in writing in the purchase agreement?
How it fits with incentives and price
Builder incentives such as closing-cost help, option credits or price reductions on quick move-ins are separate from buyer-agent compensation, but they all land in the same deal. Look at the total: purchase price, incentives, any lender or title conditions, and what you may owe under your agreement. Compare current Central PA builder incentives and every new construction community before you choose.
Where to start
Reach out before your first model visit. I'll walk you through the buyer agreement in plain language and help you ask each builder the right questions.
Ask Josh how it works for your home
Frequently asked questions
Does the builder always pay the buyer's agent?
No. Many builders offer compensation to buyer's agents, but it is not guaranteed. Offers vary by builder and community, can change at any time, and may come with registration rules, such as your agent being identified at your first visit.
Do I have to sign a buyer agreement to tour a model home?
Since the 2024 changes to industry practice following the NAR settlement, agents who are MLS participants need a written buyer agreement before touring a home with you, and that includes model homes. The agreement states how much your agent will be paid and how.
What happens if the builder pays less than my agreement says?
It depends on the terms of your buyer agreement. Many agreements say the buyer owes any difference, or let the buyer and agent ask the builder to cover it as part of the deal. Read that section before you sign and ask questions.
Does using an agent raise the price of a new home?
Builders generally set prices and incentives based on their own costs and market, not on whether you bring an agent. Ask the builder directly whether price or incentives change when you have representation, and compare the total deal in writing.
Can buyer-agent compensation be negotiated with the builder?
Yes. Compensation is negotiable. It can be addressed in your buyer agreement and in the purchase terms with the builder. How it fits with incentives or price is something to discuss openly with your agent before you write an offer.
General information, not legal advice. Compensation is negotiable and is not set by law; builder offers vary and change. Read your buyer agreement and confirm with each builder and your attorney. Josh Schoenly, eXp Realty, LLC · (717) 571-0456 · Equal Housing Opportunity.
