Which Houston Builders Are Not Paying Buyer Agent Commissions (And What That Really Means for You)

What buyers and their agents need to know before walking into a single model home in Katy, Cypress, Spring, Pearland, Sugar Land, or Richmond.

Published: April 17, 2026 | By Raquel Refuerzo

The NAR settlement took effect in August 2024 and rewrote the rules of how buyer agent compensation gets disclosed. But in Houston's booming new construction market, the bigger story is not which builder updated their policy. It is how registration loopholes, buried contract language, and community-by-community variation are quietly stripping buyers of representation they never knew they lost.

This post breaks down what is actually happening with buyer agent commissions at the builder level, submarket by submarket, so you can walk into any model home in Greater Houston with your eyes open.

Quick Takeaways

• Lennar, the nation's largest builder with 93-plus active communities in Houston, does not pay buyer agent commissions in every community. You have to verify at each one, every time.
• KB Home cut its standard co-op from 3% to 2% and caps its obligation at that rate regardless of what your buyer rep agreement says.
• Sandcastle Homes is publicly testing a model that eliminates direct BAC altogether in favor of a buyer-directed allowance.
• Most major Houston builders, including D.R. Horton, Perry Homes, Meritage, and David Weekley, are still paying standard 2-3% commissions.
• If a buyer visits a model home without registering their agent first, that agent loses commission eligibility permanently at that builder-community combination.
• Unrepresented buyers do not receive a discount. The builder keeps the commission allocation regardless.

What the NAR Settlement Actually Changed for New Construction Buyers

The short answer: less than most people expected, and in different ways than most people feared.

Since August 17, 2024, buyer agent commission offers can no longer appear on HAR or any other MLS. Buyers must sign a written buyer representation agreement before touring homes. Those two changes created a lot of noise. What they did not do, at least not yet, is trigger a mass exodus of builder co-op programs.

A John Burns Research and Consulting survey conducted right after the settlement found that 85% of builders reported no changes to buyer agent compensation. National commission data from Redfin shows the average buyer agent rate actually ticked up from 2.38% in Q2 2024 to 2.43% in Q2 2025. The current Houston housing market is sitting in buyer-friendly territory, with elevated inventory and slower absorption rates. That environment gives buyers leverage, and it gives builders a strong incentive to keep agents happy and sending traffic.

So the good news is that most Houston builders are holding the line on compensation. The not-so-good news is that "holding the line" comes with more strings attached than it used to.

Which Builders Are Paying, Reducing, or Quietly Rerouting Buyer Agent Commissions?

Here is where things get specific, and specifics matter a lot in new construction.

Lennar: The Largest Footprint, the Most Complicated Policy

Lennar operates in approximately 93 communities across the Houston metro. It is also the builder with the most agent-unfriendly commission policy in the market.

Lennar's official Broker Participation Policy states plainly that it does not pay commissions to cooperating real estate brokerages in all communities. No public list exists that identifies which communities participate and which do not. That means an agent cannot assume they will be compensated simply because they show up. They have to call each sales office individually and confirm.

The registration rules are where things get even more consequential. The agent must be identified at the buyer's very first interaction with any Lennar employee, whether online, by phone, or in person at the Welcome Home Center. The agent must also physically accompany the buyer on that first visit. Registration expires after 60 days, with one 60-day extension. If a buyer casually walks into a Sunterra or Bridgeland model home on a weekend drive without their agent registered, that agent loses commission eligibility for that buyer at that community, permanently.

There are also documented cases outside Houston of Lennar using the buyer's choice of outside lender as leverage to pressure agents into reducing or waiving compensation after the deal was already under contract. Agents working Lennar transactions anywhere in the metro should get commission confirmation in writing before the purchase agreement is signed.

KB Home: Still Paying, But Less

KB Home quietly reduced its standard broker co-op from 3% to 2% back in 2021, a change that predates the NAR settlement but remains in effect. Post-settlement, KB added a layer on top: the signed Written Buyer-Broker Agreement must predate the purchase agreement, and KB's obligation is explicitly capped at its 2% co-op rate. If your buyer rep agreement specifies a higher rate, KB will not cover the difference. That gap becomes the buyer's responsibility to negotiate or absorb.

Highland Homes: "Up to 3%" Comes With Conditions

Highland Homes advertises up to 3% commission, which sounds great until you read the fine print. If the buyer's representation agreement specifies a rate below 3%, Highland pays the lower of the two figures, not the advertised ceiling. Post-settlement, Highland also updated its policy to require submission of the buyer representation agreement to the sales counselor at contract execution. For agents, this means your negotiated rate in the BRA directly affects what Highland pays you.

Sandcastle Homes: Testing a Buyer-Allowance Model

Sandcastle Homes, Houston's inner-loop builder focused on neighborhoods like Rice Military, the Heights, and Montrose, is the only Houston builder to publicly state an interest in eliminating direct BAC. Their stated approach would give buyers a 3% allowance to use however they choose, including toward agent compensation or other transaction costs. As of early 2026 they still work with agents, but this is worth watching. If it proves successful at the price points Sandcastle operates in, it provides a template other Houston builders could adopt.

The Builders Holding the Line

D.R. Horton, Perry Homes, Meritage Homes, David Weekley, Westin Homes, Chesmar, Taylor Morrison, Tri Pointe, Pulte, Drees, and Toll Brothers are all paying standard 2-3% buyer agent commissions across their active Houston-area communities. These builders have not publicly signaled any intention to change that policy. All require first-visit registration, but their enforcement is generally less aggressive than Lennar's.

Houston Homes LLC runs a tiered structure: 2.7% for the agent's first referred buyer in a calendar year, 2.95% for the second, and 3.2% for the third and beyond. A different model, but one that rewards agent volume rather than cutting it.

What Does "Commission Is Baked Into the Price" Actually Mean for You?

This is the part most buyers do not fully register, so it is worth saying directly.

When a builder sets a base price, that price already includes an allocation for buyer agent compensation, typically 2-3%. If you walk in without an agent and purchase without representation, the builder does not lower the price. That allocation stays in the builder's pocket. You do not negotiate it away. You do not receive it as a credit. It simply disappears from your side of the table.

This is one of the clearest reasons why skipping representation at a new construction site is not a money-saving move. The builder's sales agent works for the builder. Their job is to protect the builder's margins and move inventory. Having your own agent costs you nothing extra at the vast majority of Houston builders, and it puts someone in your corner who can flag contract terms, negotiate upgrades, request closing cost assistance, and understand builder incentive structures.

For a deeper look at where your money goes in a new construction transaction, the breakdown of closing costs in Houston is a solid starting point. And if you are comparing new construction against the resale market, resale homes offer advantages builders won't advertise, from negotiable pricing and established landscaping to inspection leverage that does not exist on a builder's standard contract.

Houston Proper (Inner Loop and Surrounding Areas)

The inner loop is a different animal from the production-builder suburbs. Most construction here is custom or semi-custom, where commission terms are negotiated individually rather than set by corporate policy. Builder sales volume is lower, relationships matter more, and terms vary by project.

The name to watch here is Sandcastle Homes and its buyer-allowance experiment. Other active inner-loop builders, including Pelican Builders, ONYX Residential Group, Oracle City Homes, and Sullivan Brothers, have not reported BAC changes. Lennar and Toll Brothers also have some inner-loop presence, and Lennar's community-specific policy applies here just as it does everywhere else.

For buyers looking in neighborhoods like Spring Branch or the Montrose corridor, always have your agent call the builder's project office before your first visit and confirm commission participation in writing.

Builder Watch: Houston Proper

Paying standard BAC (2-3%): Pelican Builders, ONYX Residential Group, Oracle City Homes, Sullivan Brothers, Toll Brothers

Reduced or variable BAC: Lennar (community-specific, verify before visiting)

BAC not guaranteed / verify first: Sandcastle Homes (buyer-allowance model in development)

Registration rule to know: Inner-loop builders are relationship-driven. Your agent should call the project office directly and get commission confirmation in writing before your buyer tours the property.

Katy

Katy is one of the most active new construction submarkets in the country, not just Houston. Sunterra ranked 4th nationally for new home sales in the first half of 2025. Tamarron came in 9th. The builder roster here is dense, which means competition is real and most builders have strong incentive to maintain agent relationships.

D.R. Horton is the dominant force in Tamarron and continues paying standard commissions with no reported policy changes. Perry Homes, Meritage, Taylor Morrison, Chesmar, David Weekley, Westin, Pulte, Drees, and Tri Pointe are all active and paying standard BAC across communities including Jordan Ranch, Cane Island, Elyson, and Cinco Ranch.

Lennar operates in Sunterra, Elyson, and Winward, and its community-specific, first-visit registration policy applies to all three. KB Home is present with its reduced 2% co-op and WBA cap. Highland Homes is active in Jordan Ranch and Elyson with its BRA-matched rate structure.

Builder Watch: Katy

Paying standard BAC (2-3%): D.R. Horton, Perry Homes, Meritage, Taylor Morrison, Chesmar, David Weekley, Westin, Pulte, Drees, Tri Pointe

Reduced or variable BAC: KB Home (2% cap, WBA must predate purchase agreement), Highland Homes (pays the lower of BRA rate or 3%)

BAC not guaranteed / verify first: Lennar (Sunterra, Elyson, Winward — community-specific policy, first-visit registration required)

Registration rule to know: Lennar's 60-day registration window and in-person first-visit requirement are strictly enforced in Katy. Do not let buyers browse model homes solo.

Cypress

Cypress is home to some of the largest and fastest-growing master-planned communities in Greater Houston. Bridgeland ranked 14th nationally in new home sales in H1 2025. Cypress Green posted a 172% sales increase in the same period. The market is hot, and the builder footprint is massive.

Lennar's presence in Cypress is particularly significant. It operates in 27 sub-communities within Bridgeland alone, plus Towne Lake and Cross Creek West. That means its community-specific BAC policy is not a peripheral concern here. It is the central issue in one of Katy's top-ranked markets.

Perry Homes, Highland Homes, Pulte, D.R. Horton, Taylor Morrison, Chesmar, and Tri Pointe are all active in Cypress communities and paying standard commissions. No other Cypress-specific BAC changes were documented.

Builder Watch: Cypress

Paying standard BAC (2-3%): Perry Homes, D.R. Horton, Pulte, Taylor Morrison, Chesmar, Tri Pointe

Reduced or variable BAC: Highland Homes (pays the lower of BRA rate or 3%)

BAC not guaranteed / verify first: Lennar (27 sub-communities in Bridgeland alone, plus Towne Lake and Cross Creek West — verify commission participation community by community)

Registration rule to know: Bridgeland's sheer number of Lennar sub-communities makes confusion likely. Confirm which specific sub-community your buyer is visiting and register them before that visit, not after.

Spring

Spring's new construction activity runs along the Grand Parkway and into communities adjacent to The Woodlands. Grand Central Park, Harper's Preserve, Granger Pines, and several Woodlands-area communities are the primary areas of activity.

Lennar operates in Falls at Imperial Oaks, Woodson's Reserve, and Villages at Harmony, applying its standard community-variable commission policy. Perry Homes, Highland Homes, David Weekley, Drees, Westin, Newmark, and Brightland Homes (formerly Gehan) are all active and paying standard BAC. Brightland specifically notes a first-visit registration requirement but is transparent about its commission structure.

No Spring-specific commission changes were documented beyond Lennar's standing policy.

Builder Watch: Spring

Paying standard BAC (2-3%): Perry Homes, David Weekley, Drees, Westin, Newmark, Brightland Homes

Reduced or variable BAC: Highland Homes (pays the lower of BRA rate or 3%)

BAC not guaranteed / verify first: Lennar (Falls at Imperial Oaks, Woodson's Reserve, Villages at Harmony — community-specific policy applies)

Registration rule to know: Brightland requires agent presence at first visit but is one of the more transparent builders on compensation. Confirm in writing regardless.

Pearland

Pearland's new construction market is centered around established master-planned communities including Shadow Creek Ranch, Silverlake, and Yanni Garden. The area draws buyers from the Texas Medical Center and is one of Houston's steadier suburban submarkets.

Brightland Homes is active in Yanni Garden and pays commissions with a standard first-visit registration requirement. D.R. Horton and Starlight Homes (a D.R. Horton brand targeting more affordable price points) are present and paying standard BAC. Meritage and K. Hovnanian are also active without reported policy changes.

Lennar operates in Pearland-adjacent communities including Sierra Vista and Lakes of Savannah. Its community-specific commission policy applies here as well. No Pearland-specific BAC elimination by any builder was documented.

Builder Watch: Pearland

Paying standard BAC (2-3%): D.R. Horton, Starlight Homes, Brightland Homes, Meritage, K. Hovnanian

Reduced or variable BAC: None documented

BAC not guaranteed / verify first: Lennar (Sierra Vista, Lakes of Savannah — community-specific policy, verify before visiting)

Registration rule to know: Pearland's builder roster is relatively agent-friendly compared to Katy and Cypress. Lennar remains the primary risk here, and its policy does not change based on submarket.

Sugar Land

Sugar Land's new construction activity is concentrated in Sienna, one of the largest master-planned communities in Fort Bend County, along with Telfair, Riverstone, and New Territory. These communities attract a mix of move-up buyers and corporate relocators.

Perry Homes, Taylor Morrison, Meritage, D.R. Horton, and Westin Homes are all active in Sugar Land communities and paying standard buyer agent commissions. Jamestown Estate Homes, a regional builder active in Fort Bend County, has not reported any BAC changes. Westin Homes is headquartered in Sugar Land and maintains a strong agent-friendly reputation.

Lennar operates in Sienna with its community-specific variable commission policy. No other Sugar Land builders were documented as eliminating or reducing BAC.

Builder Watch: Sugar Land

Paying standard BAC (2-3%): Perry Homes, Taylor Morrison, Meritage, D.R. Horton, Westin Homes, Jamestown Estate Homes

Reduced or variable BAC: None documented beyond Lennar

BAC not guaranteed / verify first: Lennar (Sienna — community-specific policy, commission participation must be confirmed per community)

Registration rule to know: Sienna has multiple builders operating simultaneously. If your buyer is touring more than one builder in Sienna on the same visit, register with each builder individually before that tour begins.

Richmond

Richmond's primary new construction communities are Harvest Green, Long Meadow Farms, and Aliana. These communities sit in Fort Bend County and attract buyers drawn to strong school districts, master-planned amenities, and relative affordability compared to Katy and Sugar Land.

D.R. Horton, Perry Homes, Highland Homes, David Weekley, Tri Pointe, and Pulte are all active in Richmond and paying standard buyer agent commissions. No Richmond-specific BAC reductions or elimination were documented for these builders.

Lennar operates in Harvest Green, Still Creek Ranch, and Creekside Ranch under its selective commission policy. As in every other submarket, BAC participation must be confirmed at the community level before your buyer's first visit.

Builder Watch: Richmond

Paying standard BAC (2-3%): D.R. Horton, Perry Homes, David Weekley, Tri Pointe, Pulte

Reduced or variable BAC: Highland Homes (pays the lower of BRA rate or 3%)

BAC not guaranteed / verify first: Lennar (Harvest Green, Still Creek Ranch, Creekside Ranch — community-specific policy applies)

Registration rule to know: Harvest Green has multiple active builders operating within the same community. Agent registration with each builder is separate. One registration does not cover all builders in the same master-planned community.

What Should You Do Before You Set Foot in a Model Home?

This is the most actionable question in the entire conversation, and the answer is straightforward.

If you are a buyer, sign a buyer representation agreement with your agent before you visit any model home or contact any builder. This protects your ability to have representation and ensures your agent can be compensated. Do not browse builder websites, call sales offices, or drive through communities before you have done this. Builders track first contact, and the consequences of going unregistered are permanent.

If you are a buyer's agent, the Texas REALTORS Legal Hotline has confirmed that builders are not entitled to see your buyer representation agreement. It is a confidential document between you and your client. If a builder demands to see it as a condition of paying your commission, discuss your options with your buyer rather than handing it over without guidance. For every step of the buying process, your job is to protect your client's position, and that starts at the front door of the model home, not at the contract table.

For every builder in every submarket covered in this post, the formula is the same. Call the community sales office before the first visit. Ask directly whether that community participates in BAC. Ask for the commission rate. Get it confirmed in writing. Register your buyer by name before they set foot on the property. Then accompany them.

The builders who are not paying are not hiding it. They are just not advertising it either. And in a market where buyers are already stretched on price, losing representation because of a missed registration step is a cost no one can afford.

Raquel Refuerzo is a licensed broker and Accredited Buyer's Representative serving buyers across the Houston metro, including Katy, Cypress, Spring, Pearland, Sugar Land, and Richmond. If you are considering new construction and want someone who knows how builder contracts actually work, reach out at realtyraquel.com or call (832) 415-9228. Every question is a fair one, and no question is too small.

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