What is a typical commision to offer on the buy side for a Denver property valued around $6 Million

In Selling Property - Asked by David C. - Apr 13, 2011
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Answer(s)

Andrew S.
Broker/Agent
San Diego, CA

Approximately 2% depending on what type of deal we are talking about. If this is a leased investment the commission offered can be lower. If it is a vacant building the fee must be higher to attract brokers with investors or owner/users to work the deal.
Andrew Slade
Marcus & Millichap
(858) 373-3100

Apr 13, 2011
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Larry B.
Broker/Agent
Ogden, UT

I would agree with Andrew that it depends on the level of complexity of the deal, as you go above approximately the $2M mark, commission percentages are lower than the traditional 3%, at a $6M level I would look for something at approximately 2%.

Apr 14, 2011
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Rob B.
Chandler, AZ

David....
Keep in mind that any commission suggestion is just that. Commissions are totally negotiable and most astute agents will do just that. For the buy side 2% is a level most often suggested. However, it really depends on what you will expect the buying representative to do in the transaction. I would actually offer more to the listing agent who has to do an excellent job of marketing the property for you. While the buying side is extremely important because nothing happens until someone decides to buy, I honestly believe with the properties that are available on various Internet listing services today, that a buying agent should be satisfied with 1.5% on $6+ million.
That is my opinion. I have represented a ton of prospective buyers over the years and I totally understand what it takes to place the right property with the right buyer. For me $90,000 would be a good payday on a $6 M purchase for a client.
Onward and upward David.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Apr 14, 2011
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Matthew C.
Broker/Agent
Indianapolis, IN

2% but I would simply ask the seller because there is no telling for certain how they have the listing arranged.

Apr 20, 2011
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David M.
Appraiser
Greensboro, NC

What are cap rates on industrial of 1-2 million dollar properties

Apr 21, 2011
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Louis M.
Broker/Agent
Germantown, MD

Are you all talking about commercial or residential?
Commercial should be around 5% on each side.
I would love to have you all as my brokers. You are giving your services away!

May 10, 2011
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