I have done a few in excess of 30 yrs. I looked at it as a sale in both cases first valuing the property based on comparable sales then applying the market commission sale rate. The number obtained using usual lease commission schedule (in my neck of the woods) 6%, 5,5,4,4,3,3,3,3,3,2.5,2.5,2.5,2.5,2.5,1,1,1, etc. would take the prospective commission to unrealistic heights. Treating like a sale more in line.
Apr 12, 2013