What is a the commission usually paid to comm. Real Estate brokerages for transactions above $50 million?
I am interested to learn how much commission these large firms usually charge for large transactions. Does this include a split, if another broker brings the buyer to the transaction?
It is absolutely true that we as commercial agents and brokers must be very careful about providing "usual commission" information. But I believe we can all tell you that you should not be thinking very high on a $50 M + transaction, or you will be pricing yourself out of competition.
I had a person write to me recently and state that on a $45 M deal that he paid one of the National Companies less than 1% total. Ask yourself several ethical questions and you will come up with an answer that may work for you:
1. Am I qualified to take this type of listing?
2. What is the location, the quality of the property and under what conditions will a sale transact?
3. If I take it, how much marketing will I have to do and what will that cost?
4. Will I be depending on National exposure for this sale?
5. What will a co-broker bringing a buyer to the listing likely want?
If the answers to these questions will allow you to represent the client well; and close a transaction at an operating profit that meets your responsibilities, at the commission amount you will necessarily need to charge, then go for it.
Remember a listing is no good unless you transact. Also, a small commission on a larger deal can often be very attractive.
Onward and upward Derrick …
May 26, 2011