ERomm
2007-05-20 10:37
What is the typical commission paid to the broker for the acquistion/sale of for example : Strip Malls 25mm + value?
Specifically in California. not sure if the commission varies state to state.
Thanks-
Chris
What is the typical commission paid to the broker for the acquistion/sale of for example : Strip Malls 25mm + value?
Specifically in California. not sure if the commission varies state to state.
Thanks-
Chris
From what I have seen it varies greatly and is not a std. number like 5 or 6% as in the residential market.
The buy side varies too and I have seen 0-2%. I assume for the 0% there was some side agreement.
It's not unusual for brokerage fees to be 4-6% on these types of transactions. But in your case it would help to know whether you are the buyer or seller. Some firms only charge their seller a 1.5-3% fee, and then have language in the Confidentiality Agreement that the buyer's broker is resposible for collecting their fee from their client. Other times, the listing firm will offer co-operative compensation, much like residential sales. Sorry for the here-and-there answer, but it all depends....
Depends on what the Broker negotiates. If I find a deal like that, with a good cap rate, and its going to make me money, then I have no problem paying on the buy side for bringing me that pearl. Lets face it, for every REALLY GOOD investment, there are 100 buyers at least, so for somthing that's going to give you a 8-12% cash on return, then thats worth paying a fee for.
As far as commission, that all goes down to how good of a broker the person in, and how high they can negotiate. The lowest i've seen is 3% and as high as 9%
Thanks