How much should a finder’s fee be?

We just moved to this area last summer. My husband initially looked at 3 houses with a real estate agent, but didn’t like any of them. He mentioned that we were wanting to build and we would just look for a builder in the area. Well, she suggested one and we ended up going with him. At the time, my husband felt bad that she had shown us a couple things, and didn’t end up with anything, so said, sorry, but we’re going to build. Our builder also wanted to make sure everything was okay with her. She said, yes, it’s fine, you had no commitment to me.
Now, it’s 8 months later, and we just got an email from her saying that it’s quite typical to get a finder’s fee, so she wants 1%. Is this right?
It sounds like she just decided she went a little overboard on Valentine’s day gifts or something and is looking to make some extra cash?
What gives?

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3 Responses to “How much should a finder’s fee be?”

  1. 14U2NV | 11/11/09

    It does not sound right at all. If you did not sign any agreements with her (most common is the Buyer Broker Agreement), then you owe her nothing. As a Real Estate Agent, I might expect the builder to pay me a commission or a referral fee, but not the buyer. I also know that every person I work with and show a few houses to, might not purchase and might be a waste of time, but that is the business. Real Estate Agents usually don’t mind situations like yours, for one you were honest, and up until now you would probably recommend her to your friends and use her services when you are ready to sell your current home.

    Bottom line no contract-don’t pay, and don’t feel bad.

  2. Queen B | 11/11/09

    seems to me you tried to do the right thing 8 months ago. whats her deal? i sure as crap wouldn’t give her anything after 8 months!

  3. Mary B | 11/11/09

    Uh, what she did is illegal.

    The builder should have entered into a co-broking arrangement with her and paid her 2 to 3% for bringing him you as a buyer.

    Finders fees are illegal…ESPECIALLY if you have already closed on the home. They violate RESPA guidelines and she could lose her license for even suggesting that you pay it….THAT is how serious they are.

    So they are anything but customary.

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