I am in the process of selling some commercial property in So. California. What % can I expect to pay a broker

In Selling Property - Asked by Wallace W. - Jun 12, 2012
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Rob M.
Lender/Mortgage Broker
Houston, TX

You should read some of the other posts, it will help with repetitious qustions. Good Luck!

Jun 12, 2012
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Christopher T.
Los Angeles, CA

The commission structure for commercial in So Cal typically follows suite with the majority of other metro areas around the nation. The commission % will depend on your project, who you hire to market your property, the amount of time, expense, and work anticipated in completing the marketing assignment.
The size of your transaction will also have an impact on the commission %. Assets having a valuation above $5MM will have a different % than those assets sub $5MM. Most national brokers (and strong regional brokerages) start at 6% with transaction <$5MM staying within a 1%+/- range. Larger transaction may range lower.
Much will also depend on the project. If the asset is in some form of distress and the process is complicated by Special Servicing or court proceedings then its likely the fee will be on the higher end. The brokerage must account for risk that the asset will not sell do to elements out of their control and be rewarded for these risks.
If you should have any further questions or wish to discuss submarket valuation, or submarket metrics please feel free to contact me info@urbancre.com

Jun 12, 2012
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Bob L.
Westminster, CA

The commission is negotiable. You may agree on a percentage of the selling price or a fixed amount. It is up to you and the broker to agree.

Jun 12, 2012
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Jeffrey O.
Riverside, CA

It all depends upon the type of commercial property you are selling....the longer it takes to market the higher the commission.....Land would be about 10%, but if you are selling a higher priced NNN property that you owe with stable tenants then it can go as low as 1/2 precent on properties over $10M. so ...yes it is negotiable but based upon a lot of factors.

Jun 12, 2012
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Julio G.
Tampa, FL

What you should consider before asking this question is, what are your expectations in regards to the Broker services. The amount of service will be comensurate with the agreed amount of payment for those services; whether fee per service or commission based on percentage of sale, lease or other. Each and every situation will vary and so you should be weiry of any standard fee or percentage; you may end up wasting your time and patience.

Jun 12, 2012
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Jasdip S.
Yuba City, CA

Between you and your broker, it's the relation of service, and trust. If you have mutual trust, which is most important, you should ask your broker what would be the market value, much much can it sell for, what should you pay to him/her.
It's not easy to sell, if the price is not right.
Good luck!

Jun 15, 2012
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Rob B.
Chandler, AZ

As a commercial broker in CA for over 35 years, the best answer I can give to your question is: You won't have to pay any commission if you don't sell your property!
What I mean by this is that you really need a broker that is going to get the job done for you at the highest potential sales price for your property, in the shortest possible time, netting you the fairest return you can receive on your sale.

Negotiating the commission is not nearly as important as evaluating the agent's ability, performance and personality. There are a ton of great agents out there. Don't fail to make a good decision on the three qualities mentioned and the commission will become largely a lesser point.
Onward and Upward Wallace!
Rob Baird

Jun 19, 2012
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