On a large scale commercial transaction, say $ 20 million , what would be the expected buyer agent commission?

mixed use project, cash deal
In Market Conditions - Asked by Nancy P. - Dec 5, 2011
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

All commissions are negotiable.

Dec 5, 2011
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David V. T.
Broker/Agent
San Jose, CA

When the seller lists the property with a listing broker, he/she offers to pay a certain amount (fixed amount or a percentage of the sale price) to the listing broker. The listing broker in turn offers to split the commission (normally 50/50) to the selling agent who finds a buyer for the property. Normally, the higher the price the lower the percentage. I would expect the buyer's agent receiving 1% of less of the sales price for the commission for a $20M transaction.

Dec 5, 2011
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Lisa J.
Listing Administrator
Cleveland, TX

I agree all are negotiable

Dec 5, 2011
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Steven D.
Broker/Agent
Los Angeles, CA

You aren't typically going to just get 3% on many deals like that, so good question.
Well, of course its negotiable, but what are you negotiating over?
In other words what are you bringing to the table that is worth something? How are you creating value in the transaction? If you are going to be FULLY involved in the transaction then go ahead and ask 1.5%, maybe 2% if complicated, and try to typically hold to 1% and you should be OK; 1% usually is a reasonable place to end up in a straight-forward deal. You still might get knocked down to 1/2%, or $100,000 since some buyers will just draw a line at an absolute amount.
BUT, it depends, what do you have to do? One phone call and an introduction meeting or 6 months of complicated investigation and negotiation? And it is you, or you and two other people? Get more if you can = its negotiable! You might be able to get 1.5 -2%, maybe even 3% on some deals, if you earn it. But it also depends if you are talking about getting the fee from the seller or from your buyer. So, yes, there is a lot of negotiating going on...
Use the LOOPNET listings to prove your case with fees offered to co-op for the buyer's side.
If its a buyer paid fee agreement, you can offer to reduce your buyer paid fee by any commissions paid by the seller; that way you can approach seller's of unlisted properties and the seller does not have to pay your fee, or, you can work on a co-op basis and not have to worry about sub-par co-op fees.
You are licensed, right?
Good Luck!

Dec 6, 2011
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Andre D.
Broker/Agent
Orange, CA

Eventought commission are negotiable there is no price that can be set on a sale specially when we analyse the indicidual circumstances of the sale, the urgency of the buyer and seller and their purpose after the transaction, total earned commission by brokers can range from 1% to 10% of sale.

Dec 7, 2011
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Charles C.
Researcher
Medford, OR

From what I can see , the higher the sales price levels , the lower the commission rate. The buyer's broker and seller's broker split the commission-probably 50-50. It all depends what's in the contract and what your your representing buyer agent can receive. I would want to have a agent on your side , in this case the buyer,espicailly for a project this large.

Dec 21, 2011
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