Experience with a 3rd Party Salesperson from a Builder?

Hi,

I recently contacted a small builder in the local area where I bought my land, let's call this Builder A. and a few days later I was then contacted by a different builder company (let's call this Builder B) to come to their display house at a different location.

Builder B offered to be able to build the house we want below our budget (which no other builders in the area are confident to quote). And then when I asked about "who" is the builder to build the house, it's actually Builder A who will be building the house, and Builder B simply acts on behalf of builder A as the salesperson to engage with us. To further sweeten the deal, Builder B is also throwing in a free floorplan design service from their affiliated architecture. This Builder B wants us to put down $4,000 to lock us in.

My gut feeling with this is that this is too good to be true and am cautious about the $4,000 lock-in fee that will set us back in the future when it comes to the details in the contract.

Does anyone ever have any experience dealing with such a scenario, where a builder act as a salesperson on behalf of another builder? and also the $4,000 lock-in fee in exchange for a floorplan design with an architect sounds like a trap to lock us in with the contract.

I'm keen to hear your advice or thought on this?

Comments

  • +1

    Logic dictates you speaks to Builder A, mention Builder B's deal and ask for sale's commission be paid to you rather than to Builder B. Right?

  • A free floorplan design that comes with a $4,000 lock in fee? Am I missing something here?

  • Did you get a copy of the contract? If yes read it from end to end, bit if not ask for one and then read it. When you read it check for any conditions where they can increase the price and look for what is NOT included in the price.

  • -1

    Sounds fully shonky to me….

    Find Builder C

  • This is how Hotondo Homes operate. Nothing wrong with it. It helps secure the cashflow for Builder A, less problems for small builders who haven't the time to deal with customers directly and just focus on the construction work.

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