I'm sure you've heard the rumors about builders offering Realtors X%-Y% commission to sell their products. Y% on a $350,000 home...that's a new Audi A4!!! Seriously, this poses the question - if a builder can offer Y% to a Realtor, why don't they just lower the base price by X%?

I'll tell you why....Phoenix builders have overextending themselves in this market and are stuck with inventory they cannot push. Plus, they don't want to lower the comps in the neighborhood to devalue their product. Would it tick you off if you waited 8 months for a new build and then the builder drops the base price 7% to sell a spec home that is the same floor plan? I would be.

Now back to the HUGE commissions to Realtors. As a Realtor, I am not comfortable accepting a X%-Y% commission for selling a house. It just crosses the ethical boundary for me...I mean, how can you justify this to your clients when they see a $30,000 commission on the settlement statement?