Paying Only When the House Sells: A Risk-Sharing Pitch for a Slow Market

With builder confidence at a one-year low and incentives doing much of the work to move new homes, one marketing model is pitching builders on a simple proposition: pay nothing unless a sale closes.

Builder confidence fell to 32 in September 2026, its lowest level in a year, according to the NAHB/Wells Fargo Housing Market Index, and roughly two-thirds of builders reported using sales incentives that month. In that environment, spending marketing dollars with no guaranteed return is a harder sell than ever.

“There is no guarantee on how many leads you get, and no guarantee they convert,” says Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee, describing the risk builders take on with upfront marketing spend.

Builders Update’s pay-upon-performance program inverts that. Builders pay nothing upfront to list and promote inventory, and a fee is due only when a home closes, alongside the referral fee owed to the agent who brought the buyer.

The closing fee is tiered by price: $1,000 on homes up to $500,000, $1,500 between $500,000 and $1 million, and $2,000 to $2,500 above that, which Gaul argues is a small fraction of the sale on higher-priced homes.

There is one condition. Builders have to contribute their full inventory rather than list selectively. “You can’t just cherry-pick,” Gaul says, explaining that the model works because the platform markets the full range, not only the hardest-to-move homes.

Gaul frames the approach as sharing risk rather than charging for exposure. Because the platform earns only on a closing, its incentive is tied to selling homes rather than collecting subscriptions. The program also includes a cooling-off provision: if a builder leaves, any leads the platform has already delivered remain payable for a defined period, protecting the work done on both sides.

The pitch lands differently in a slow market than a hot one. When homes sold quickly, upfront marketing felt like a reasonable bet; as confidence softens and incentives climb, builders are more cautious with every dollar. A model that ties cost to outcomes, Gaul argues, is built for exactly this moment.

About the Expert: Bill Gaul is CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. Based in Austin, Texas, he specializes in new construction data and MLS interoperability.

About Builders Update: Builders Update is one of North America’s leading providers of new construction inventory data, serving builders, MLSs, brokers, and real estate professionals. Through its innovative platform and commitment to data quality, Builders Update advances transparency, interoperability, and collaboration within the new construction sector. For more information, visit www.buildersupdate.com.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.

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