What is your comission on Selling a commercial property?

In Selling Property - Asked by judy g. - Oct 30, 2008
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Answer(s)

John Z.
Developer
Crownsville, MD

usually seller and buyer's brokers split 6%. so 3%

Oct 31, 2008
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J. Duane F.
Broker/Agent
Princeton, TX

I usually Charge 6% of the 1st. $million and 3% of all amounts over 1 $million. Many brokers in my area charge 6% no matter what the total sales price. Of, course on really large transactions, the commission gets negotiated most of the time.

Oct 31, 2008
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JOHN S.
Broker/Agent
Spring Hill, FL

Im not sure how you can answer this question with a "standard" answer. How could you determine a commission without even seeing or knowing anything about the offering? To just throw out numbers is a bit unprofessional I think. No offense implied or intended to anyone.

Oct 31, 2008
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William S.
Broker/Agent
Chicago, IL

John S. has it right. There is no "standard" and to imply so qualifies as price fixing and is illegal.

Nov 11, 2008
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George E.
Broker/Agent
Miami, FL

Giving guidelines based on historical data and an answer to a beginner is not illegal or price fixing but very helpfull. Obviously there are no standards. We vary as well depending on the offering, services offered, location, deal, international, etc. but it goes anywhere from 6% to 10%, sometimes up to 15%. with limits and scheduled down too...You can also be a partner/investor buyer/seller or a mortgage broker, which will through away any of these comments...God Speed, especially in this economy!

Jan 13, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

Actually it's potentially illegal to discuss commissions between brokers and could constitute an anti-trust violation. Regardless, the truth is that there is no standard commission rate. Its common for there to be a commission based on a percentage of the selling price, but sometimes the commission is a flat fee.
As a rule of thumb, when I am running cash flow analysis spreadsheets and calculating reversionary value, I will often use between 4% to 8% for selling/closing costs.

Jan 16, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

It's illegal to say that there is a standard out there, because every agent and every agent is free to charge as they see fit. Many commercial brokerages have a set fee schedule for their office, but even then it's negotiatable.
I'd recommend contacting a few qualified brokers in your area and sit down for a listing appointment with each.

Aug 3, 2009
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