What would be a fair "flat rate" to give an agent who showed me a property that couldn't sell and I leased it

I signed a "non exclusive" contract with the agent for 3 %..but the I wound up leasing the overpriced property; the agent says he is "open" to whatever I think is fair.
In Leasing Property - Asked by rich c. - Jun 11, 2010
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Mark R.
Syracuse, NY

3% for the full term. If you agreed to 3% on a sale there is no reason not to pay the same on the lease.

Jun 11, 2010
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Oscar Z.
Northbrook, IL

I agree. I usually charge 7% for the first year and 3% per year for the remaining term.

Jun 11, 2010
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Tina P.
Los Angeles, CA

A "Non Exclusive" contract leaves you with an opening and out, but the agent did attempt to market and sell a property you state to have been overpriced, so I believe the moral and right thing to do would be to pay him/her a fee! An Exclusive right to sell would insure a commission/fee to the broker if you had leased the property, but a Non-exclusive doesn't, I would offer the agent/broker 1.50% of the entire lease amount (monthly rental amount x total number of months leased).

Jun 11, 2010
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Jim B.
Phoenix, AZ

I think the 3% is that is about half the normal fee charged for a lease.

Jun 11, 2010
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David S.
Sacramento, CA

My question is what if you purchased a property, through this agent, that was listed with another broker? That would put you in a position of probably paying, depending on the listing agents' contract, 9% of the sales price in commissions; far too much. The answer to the specific question is you have no legal obligation, unless provided in the non-exclusive listing, to pay anything. What would be "fair" as long as your agent procured the property, assuming the landlord refused, would be 2.5-3% of the first 5 yrs consideration.

Jun 11, 2010
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Anand B.
Arlington Heights, IL

I get 7% of rent (nnn or gross) for the first year and 3% for each year thereafter for up to 4 years of lease.

$4/sqft for 5 years or longer term lease.

Jun 12, 2010
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D D.
Irvine, CA

This answer will likely generate some ire from others!
BUT here goes!
Nothing! You owe the agent nothing.
#1 taking a overpriced listing is foolish of the Broker/Agent and is largely a waste of EVERYONES time including the Seller. The fact that the agent took it as a open listng likely illustrates they were taking a gamble and knew it.
The fact that you wisley took the market off the market and maximized your cash flow return by leasing it doesnt change the fact that you owe him/her nothing unless they assisted you in leasing the asset then in that case 3-7% are typical ranges for lease commissions in most regions (dependent on lease size, term etc)
Buy them a dinner or send them on a short ling weekend vacaiotn as a gift if you feel the need. You will be more considerate than most if you do even that.

Jun 22, 2010
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