Realtors role in Buying Land to Build STR

[Christina Kinard]

I am looking to buy land & build a STR. I would like to use a new construction loan so that both the land & build are in one loan & less of a down payment.

If I use a realtor to purchase the land, will I have to pay them a percentage of the construction loan? IE: If I spend 80k on land & get a loan to build 400k home,  will I owe the realtor fee's on just the 80k land or will I owe on the construction loan. Since I would be working directly with a builder to build on my own property, I have no need for a realtor beyond purchasing the lot.

Appreciate any insight!!

[Jay Bettencourt]

typically the commission for land is 10%. 5% to the buyers agent and 5% to the sellers agent. So in your case $8000.00 commission. usually paid by seller. The realtor doesn't get a commission for the house you build.