Developer and Builder Fees

[Anthony Koinis]

Hi Everyone, 

I am in the process of developing 85 acres into 14 ranchette lots (5-7 acres each) in Hill Country outside Austin, TX (Johnson City). We would like to select some preferred custom home builders and offer to send lot buyers in their direction. 

My question is this: What would be a reasonable referral fee/commission for the builder to pay us to be a preferred/referred builder for the development?

We were thinking around 5-7% of their builder fee....   

(Math as follows:  Lot cost ~$340k , Avg. Custom Home Build ~$1M, Builder fee ~$200k,  Our developer's preferred builder fee (paid by the builder out of their $200k x 6% = $12k)