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Commission structures in house and land sales represent a key differentiation tool for builders. These arrangements are complex and multifaceted, varying significantly across projects and regions.

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Commission Basics

Commission payment is a lever that builders use to differentiate themselves from others and attract sales. Builder strategies often involve adjusting commission amounts based on geographic location, market conditions, and package type. Land commissions typically remain separate from building commissions, with land-only sales generally commanding lower rates (approximately $5K).

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Commission Amounts

House and land commissions typically exceed traditional real estate markets, ranging from 5% to 10% of package price. Rather than percentage-based calculations, most builders offer flat-rate commissions, with wholesale builders averaging approximately $30K per sale.

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Payment Stages

Commissions are almost always paid in stages, reflecting the buyer payment timeline. Common structures include:
  • 50% at unconditional exchange and 50% at settlement
  • 50% at slab and 50% at frame completion
  • Payments tied to specific construction milestones

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Determining Your Commission

The Kenekt platform lists base commission amounts (inclusive of GST) that builders have committed to paying. However, builders can reduce the base commissions for a project without notice, and package-level variations may apply. A marketing agreement with Kenekt enables commission follow-up and payment tracking.

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Ethical Considerations

Commissions must maintain transparency and cannot be unethically added to client pricing, particularly given regulatory oversight from ASIC and FIRB regarding investment marketing practices.