Jay Dixon - Licensed Real Estate Broker
Certified New Home Specialist
Combat Engineer Veteran, Ohio National Guard

"Connecting Buyers with Builders"

Welcome to the Financial Superbowl of your life! Buying a new home is the largest and most important financial decision you will ever make in your lifetime.

I am often asked how much a builder makes as profit on a new home. The costs involved for building a new home are as follows; pay particular attention to the profit section of the pie chart and the sales and marketing slice of the pie. We will discuss those sections, because you- the new home buyer, can keep the builders profit out of the double digit range if you hire me as your Real Estate Broker. Most people would agree that an 8% profit per home is a very reasonable amount to keep a builder in business.

So here is a breakdown of where the money goes, the builder typically makes a profit of 8% on the home they build.

Sales and marketing costs are 6%. The builder's salesperson typically a makes 3% percent commission, leaving the other 3% of this 6% to pay a commission to a Real Estate Broker if the buyer has one in the transaction.

What happens if the buyer goes into a builder sale office and does not have a Real Estate Broker on their side?

The Builder makes 3% MORE PROFIT IF YOU DO NOT HAVE A REAL ESTATE BROKER!

They now make a hefty profit of 11% on your home!

Here is what I suggest: you, the new home buyer should get your "slice of the pie" by hiring me as you Real Estate Broker. I give back to you half of the 3% commission in an cashiers check "cash" at your closing - THAT'S MONEY DIRECTLY IN YOUR POCKET $$$ Some buyers prefer me to buy them a washer and dryer or some other appliances or upgrades for their home - that will be your decision.

If you need some more evidence that you should hire a Real Estate Broker when you build a new home - Do this experiment... and call and hear for yourself how the builders handle you not having a Real Estate Broker... the builder hears the cash register ringing in more profit if you walk into their sales office alone!!!