Building a home- did our realtor say to much to the builder/property owner?

Question:

My husband and I found a plot of land in a great location. We inquired with our realtor about the land and she said she would contact the owner, who happens to be a builder. We have seen some of his homes and they are handsome. In fact, we would want him to build our home even though he will sell the land without the buyer having to use him as the builder. However, she then told the builder how much we were able to spend and what we were looking for in a home. Our concern is whether or not she should have told him what we were able to afford? We wanted her to say something like: I have a client that was looking for a home in the range of 4000-4500 sq ft with such and such specifics. They are looking at your property and wanted to know with the details I mentioned how much that home would cost? We now feel that since the builder knows what we can afford he will be certain to estimate the price at that. Are we off on this?

Answer:
If I was the builder I would certainly use any information that would benefit my profits. However your agent does not have a fiduciary duty to you unless you signed a contract with her. If you had had a contract then the licensee would have a fiduciary duty to you called confidentiality and could not release information about your finances that could be used against you in the negotiations. If you had no contract then the licensee used bad judgement. Look to shop around.
Buena Suerte

You can hire any builder. Get estimates and get references too. I would interview several builders and find out their reputation.

You do not need a real estate agent to get yourself a builder.

I am not sure I really see the problem. You can afford it or you can not. Personally, I like dealing with people in business and life who tell me where they stand and what they need. I know in negotiating, it is often said that the first to name a price, loses. However, there are times when being up front is the best way to get what you done without wasting time, you know? If the builder has an estimate that is to high, negotiate lower, terms etc. or go get estimates from other builders at the same time.

Figure out how to make the situation work for you.

How much you can afford may not necessarily be how much you are willing to spend. I doubt you will have problems negotiating a price. The builder already knows how low he can go, plus you can buy the lot and hire a different builder. You can and should shop around, this is were you will get your negotiating power.

Building a home- did our realtor say to much to the builder/property owner?

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