What are typical costs of sale (% of price) that a seller incurs in a commercial real estate transaction?

In Selling Property - Asked by Luke M. - Apr 10, 2015
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Nehad D.
Tampa, FL

Many consumers believe that real estate transaction costs are simply the 5 percent to 6 percent of the sales price that the real estate agent earns as commission. But the real costs of selling property are much higher — especially when viewed as a percentage of earned equity. It differs from sale to sale, but could be around 10% of the sales price depending on where the property is located, what the state taxes are, and what the commission paid to Realtor is. Are you looking for an agent to list a property for you?

Apr 13, 2015
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Francis L.
Santa Clarita, CA

It can vary, however shouldn't be more than about 7.5-8%, including the commissions paid to the brokers. The property type, sales price, type of existing financing in place, property condition and deferred maintenance, etc. have an impact on the fees. The higher the value, the lower the percentage of sales price...

Apr 23, 2015
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Theodore V.
Arlington, TX

Without a broker, transaction costs are usually 1-1.5% of the cost. Title insurance often is the costliest item. Some jurisdictions have a 2% transfer tax. Title companies love to charge junk fees, such as express mail of $65. But a watchful eye can catch them and negotiate them.

May 3, 2015
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Tim b.
Manhattan, NY

taxes-big cost can get around with 1031 exchange
closing cost-if the deal is made for you to pay
title costs
much more but, can be negotiated

Jun 1, 2015
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