OK. So my center of influence has turned up another lead . . . but is it possible to still get a commission when the lead/client already has land that they own. They want to find a builder who can put the home they want on the land they recieved from their parents? - I don't suppose anyone here is connected with a "builder's network" ?

That is a very local thing. Look though the local MLS system for new construction homes. Should be able to turn something up there. Also do a google search city state new construction homes, or something similar.

Not sure if you will be able to figure out a way to get any commission on this though.

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The lack of commission is my fear. I am hesitant to work with the couple, but since they came to me via my Center of Influence, I really want to keep the pipeline open as much as possible.

To the best of my knowledge (man I love starting off that way):

You will get a referral fee from the builder. As you are not personally selling something, only finding them a builder, there won't be commission there unless the buyer and/or builder want it there.

You get the warm fuzzy feeling and a referral bonus though. Not all bad considering it won't be much work.

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They will pay just find the right one. I have a builder that gives me 5% for build jobs. You just wont get the land costs.

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OK so what would be a fair referral fee? % or dollar figure? 5% sounds gggrreat!!!! But that is more than I would get if I were to find them a home already on the market.

I was thinking . . . use what I would NET if I were to sell them something. For instance, let's say they are approved for a $200000 home. If that is what they "build" or "buy" my broker would get the 2.5% commission (if it is new construction) and I would get my agreed upon %age of that amount.

Is that "too much" to use as a referreal fee?

I don't understand why this is an issue. The prospect is not buying or selling real estate. You are not helping them to buy or sell real estate.

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It seems to me that the prospect is buying real property in the form of a house to be built on the land they already own. So why couldn't sellitnow get a commission from the builder for helping the builder sell a house, or from the buyer for helping the buyer find the right builder to build a house on her property?

It's like buying a condo that hasn't been built yet, you aren't buying the property but you are buying the condo and the right to use the property. The final closing would probably happen after the house is built, when it goes from construction loan to a permanent loan.

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I think you should get paid twice!

These people require your time and effort to help find them a good builder (Obviously they do not feel comfortable attempting to locate one themselves and value your educated services) - although not your normal course of business, charge them a flat fee for taking your time and energy. Any professional should get paid if their services or consulting are solicited.

Take for example PPC marketing. I am a "natural search engine consultant" for the most part - and PPC is not a service I offer - however if you wanted to pay me for 4 hours of my time to help set up your Google adwords account, I would charge you my usual rate of $1000 USD - and although I am not a PPC specialist, I am likely better qualified than you are (Unless you are Ronnie

In terms of the builder paying you - hell yeah why not - you are bringing them a client, tell em to pay a finders fee.

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Well, we have RESPA, the Real Estate Settlement Procedures Act and that doesn't really allow for much other than broker to broker referral fees. The only reason that is allowed is because the National Association of Realtors is a really effective lobby.

No. The people already own the empty lot. Hiring a builder to put a building on an empty lot is not purchasing real estate. If the property were sold contingent to the building of a structure, there are white paper guidelines and occupancy guidelines that require the structure to be actually built BEFORE it changes title. Then it would be considered "real estate".

If the owners sell the lot AFTER the structure is built, then, since the structure is permanently attached to the land -- it would also be considered "real estate."

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