What is a the commission usually paid to comm. Real Estate brokerages for transactions above $50 million?

I am interested to learn how much commission these large firms usually charge for large transactions. Does this include a split? If another broker brings the buyer to the transaction?
In General Area - Asked by Derrick T. - May 25, 2011
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Answer(s)

Jonathan A.
Broker/Agent
Dallas, TX

It is between 1-2% split between brokers.

May 26, 2011
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Chris M.
Broker/Agent
Greenville, SC

Derrick,
The FTC and NAR have real heartburn with anyone who would answer this question with a number. There are laws/rules against setting, or even talking about, a "usual charge" for any real estate transaction.
It is strictly a matter of negoation between the parties involved.

May 26, 2011
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Phil B.
Broker/Agent
Chicago, IL

I agree with Chris M. on this. Most states also have a problem with posting the "usual" commission . Negotiation is always part of a transaction of this size.

May 26, 2011
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Rob B.
Chandler, AZ

What is a the commission usually paid to comm. Real Estate brokerages for transactions above $50 million?
I am interested to learn how much commission these large firms usually charge for large transactions. Does this include a split, if another broker brings the buyer to the transaction?
It is absolutely true that we as commercial agents and brokers must be very careful about providing "usual commission" information. But I believe we can all tell you that you should not be thinking very high on a $50 M + transaction, or you will be pricing yourself out of competition.
I had a person write to me recently and state that on a $45 M deal that he paid one of the National Companies less than 1% total. Ask yourself several ethical questions and you will come up with an answer that may work for you:
1. Am I qualified to take this type of listing?
2. What is the location, the quality of the property and under what conditions will a sale transact?
3. If I take it, how much marketing will I have to do and what will that cost?
4. Will I be depending on National exposure for this sale?
5. What will a co-broker bringing a buyer to the listing likely want?
If the answers to these questions will allow you to represent the client well; and close a transaction at an operating profit that meets your responsibilities, at the commission amount you will necessarily need to charge, then go for it.
Remember a listing is no good unless you transact. Also, a small commission on a larger deal can often be very attractive.

Onward and upward Derrick …

May 26, 2011
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JM Padron C.
Broker/Agent
Weston, FL

Commissions are not set at all, in fact it is illegal to set a number for a commission compensation. Commissions are negotiable, only thing I can say is that usually as larger the transaction is the commision tend to be lower.

May 29, 2011
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