New Build, Change Order, Real Estate Commission... (3%, agent, commissions)

[NCHammerhead]

We're building a new house, and everytime we have a change order that increases the cost of the house, the builder adds on a 5% "real estate commission" fee.. Does this sound right?.. Has anyone had any similar experience?

[Rakin]

Never heard of this before. Many builders base the commission on the original price. If they do base it off the total, I've never seen them add a line item such as this.

Most commissions are 3% for an agent. Sounds like they are trying to pad their profit.

I assume you have an agent, have they seen it with this builder ?

[oldmanbob]

Most builders add a fee, for any changes, as it does cost them to make changes, and most have a percentage charge, but its not considered for the agent.

[middle-aged mom]

I too would be very surprised if this is a Real Estate Commission Fee. I assume you used a Realtor to write and negotiate a contract for you.
Why not get him/her involved to sort this all out.

If you think of it, come back and let us know how it all worked out.

[gtice]

If you are working through the builder's real estate agent you have to remember that the agent works for the builder's interest and not yours. The agent must do as his client asks him to do as long as it is legal. The agent must adhere to ethical considerations and the state's agency laws for all parties.