can a residential real estate agent get a commission on a commercial deal?

In General Area - Asked by Bill B. - Apr 4, 2013
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Answer(s)

George O.
Broker/Agent
Benicia, CA

Bill, Short answer is Yes, if licensed, etc. Long answer is that commercial work is different than residential. While I am sure you can learn the differences I don't think you want to learn at your client's expense. Suggest you work with a Commercial broker to learn the ropes. I work in both areas but focus on commercial in a small market area in CA.

Apr 4, 2013
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Chris F.
Broker/Agent
Salem, OR

Totally agree with George, the nuances of commercial real estate may appear subtle from the outside looking in, however in reality can be monumental. Small mistakes can cost clients greatly in both the short and long term, and not just monetarily, but also with respect to time and opportunity cost. I am 100% commercial, and only focus on investment real estate, and I even pass off 90% of my leasing leads, or non-investment leads to other brokers in our office. I dont work those niche's enough to be doing a potential client any favors in taking on the project. Depending on the deal, it may be best to partner with a commercial broker you know and see if they can lend a hand and help teach you the ropes. Good luck

Apr 4, 2013
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Randy W.
Broker/Agent
West Palm Beach, FL

There is no distinction between commercial, industrial or residential real estate licenses. Only experience. I do agree with the other answers, that each requires their own expertise.

Apr 5, 2013
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Dan Shimasaki C.
Broker/Agent
Ocala, FL

Good responses and I agree with all of them! refer the transaction to an experienced commercial broker is better served to the prospect and your firm. We are focused on Commercial and Development and refer many residential to professionals like you to serve the prospects better. Just ask for a referal fee and let the professionals handle it.

Apr 5, 2013
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Charlie B.
Broker/Agent
Rancho Cucamonga, CA

Concur. The responsibilities of an agent from residential to commercial are significantly different.

Apr 7, 2013
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Jeffrey R D.
Broker/Agent
Middletown, CT

I agree with all that has been previously said, the transaction can be very different and the end result may not the best for the agent or the client. In some states like here in CT there is verbiage in the licensing laws that state that you should not practice what you do not know. Do the right thing for your client and yourself and refer the deal to a knowledgeable commercial agent and get the referral and a very satisfied client too.

Apr 8, 2013
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Patti V.
Broker/Agent
Hampton, NH

Agree with all of the above. And don’t forget a hefty lawsuit if you represent a client that you weren’t qualified to represent. His loss could be your loss as well. Refer out what you don’t know. The difference between commercial RE and residential RE is like night and day. I do 100% commercial and don’t feel qualified to represent any residential buyer or seller so I refer them out as I don’t know that market. In NH a broker/agent should not practice what they don't know.

Apr 8, 2013
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Jabari J.
Broker/Agent
Fairburn, GA

Any licensed agent can sell Commercial Real Estate. It best to understand Commercial Real Estate before diving in it as a niche.

Apr 10, 2013
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ian l.
Broker/Agent
London, LN

Hi Bill,
Sales commissions are split a lot of ways. A real estate agent who lists a property for sale traditionally is paid a percentage of the home’s selling price, and the listing agent typically offers roughly half of that commission to an agent who brings a buyer into the transaction.There can be huge differences between a commercial real estate deal and a residential real estate deal (buying a home). Commercial real estate transactions can be much more diverse and wide-ranging than selling a home.Even though agents follow proper protocol and discuss commission negotiations with the company manager before offering deals to customers, companies rarely concede their portion of the commission. The agent is usually held responsible for the amount. An experienced agent with a higher split than 50 may be “docked” a percentage to make sure that the company does not lose any money.

Apr 22, 2013
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Patrick K.
Broker/Agent
Cypress, TX

I won't pay a residential agent that try's to get involved in a commercial transaction where you have no experience. Just exactly what are you being paid for? I will pay you a referral but not a fee if you want to be trained too...

Apr 22, 2013
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