Typical investment sale broker commission on larger deals
Hey, curious what investment sales brokers typically see (multi-family specifically) on deals, say, in the ballpark of $50 million. 

In my market I know 5% is typical for smaller deals but I’m curious whether or not this changes once the deals get bigger
[{"id": "imgxqfr", "text": "Depends on the market but you\u2019re probably going to be under 1%", "replies": [], "depth": 1}, {"id": "imh4z2z", "text": "Probably 75 pts or it might be incentive based to get 1 percent!  Meaning 75 pts for first 50M and any thing over could be 5 percent.   The 50M whisper might be a stretch number so this helps this broker to tell lies to the buyer and break records.  If 1031 exchange, that is a good \u201cmilk\u201d that\u2019s going to get sucked dry!!!", "replies": [], "depth": 1}, {"id": "imhl1nd", "text": "Clearly it's market dependent based on comments below. I have seen 1% even on $100+ M deals", "replies": [], "depth": 1}, {"id": "imiaqjz", "text": "1% on $100m deals is an owner who shouldn\u2019t be in real estate.  You are literally giving away too much to the broker, if the deal completely crushed and you make a 30 irr over 5 years or 2.5 to 3x MOIC, then sure, pay the broker if it\u2019s outsized return to their work and not cap rate compression or you improving NOI!!  Most brokers are just looking to break high water marks and will sell a shit deal to get commission, so why even pay above market if same broker will ask you to stretch on a deal you want?!!", "replies": [{"id": "imlsw1l", "text": "I hear ya but that\u2019s why there are brokers and how they earn their commission. We were the last ones at the table on a $65MM whisper that we got under contract for $50.75MM. We were at $50MM and he was squeezing us for more saying need to be north of $50.5MM. Negotiating against ourselves but still a great deal.", "replies": [{"id": "imm38z6", "text": "$65M whisper and now closing at $50M?  Either that broker bought the listen to say \u201cthe market spoke\u201d to a greedy seller or out right incompetent broker who was more focused on buying a listing!!  I can see a deal getting bid up from 50 to 65 in a market like Austin, Bellevue, Miami, etc but you have tech or finance/ hedge fund jobs driving those markets today!   You go quoted the emotional based whisper by the broker!?  Not the real guidance to a relationship client!!  If this was an office deal with a shit WALT, then maybe that might make sense as that product is taking a dump!", "replies": [{"id": "imm7ta7", "text": "The capital markets are changing so quickly it made sense. They went out in March when things were still hot. We got under contract in June and closing early September. Also we don\u2019t buy office right now. There\u2019s no rent growth. If you\u2019re heavy in office/retail, hold tight for the next 6-12 months while the macro economy evens out.", "replies": [{"id": "imm81b6", "text": "Is it multi?  That discount still doesn\u2019t make sense unless it\u2019s a boise or phoenix asset where those markers are seeing drastic moves in value dilution!", "replies": [{"id": "imniepu", "text": "Throughout the mountain west we are seeing discounts on every multi deal. Many of the larger shops are completely pencils down right now. There aren\u2019t as many buyers. The market is changing.", "replies": [{"id": "imoc60l", "text": "I am familiar with some of those markets and you are still seeing deals!  Yes, every group is now wanting to use a 5 cap at exit.   Some groups are net sellers but I still get pitched deals by the big-4 brokerages in some of those markets - 3 start with a C and one J!  Agree market is turning.  Interest rate is f**king things up for pure acquisitions folks and development groups  are struggling due to construction cost not catching up with rents!!  It costs 400k plus to build a podium product today.  Greed is going to rank everything", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iml0fg8", "text": "It's often a flat fee. There has been incredible commission compression. The last deal I did was a $40M (approx) hotel and had a $200k fee. The Seller's logic was they pay their in-house counsel $150k annually so why should I gross more for 8 weeks of reaching out to 100 or so likely institutional buyers and getting jerked off by everyone with the last name Patel.\n\nI know brokers that have done $500M+ portfolio deals at $250k - $500k fees. Four agents split said fee.\n\nThe sweet spot is $1M - $20M. You often make more in that range than anything larger as the fee is still typically 3 - 4%.", "replies": [{"id": "ith81fc", "text": "Yep - I just closed a $25.5m deal and the fee was $318K", "replies": [], "depth": 2}], "depth": 1}, {"id": "imlo65s", "text": "3%", "replies": [], "depth": 1}, {"id": "ith7vvu", "text": "I just closed a $25.5M multi family deal. We got 1.25%.", "replies": [], "depth": 1}]