104 Unit Mixed Use New Construction Commission in the Seattle Area
I am brokering a deal for a developer wanting to acquire fully entitled and permitted land for 3,000,000 (104 unit mixed use commercial/MF). What would a standard commission look like for this type of transaction?
[{"id": "hynheqz", "text": "Depends on the market so will defer to people on here in your neck of the woods. I\u2019m in the NYC metro area and depending on the deal and parties involved you will typically see anywhere from 2-5%.", "replies": [{"id": "hynyc3w", "text": "2-5% for Agent and Broker fee combined or just the agent fee?", "replies": [{"id": "hyp21of", "text": "Not sure what the difference is there so I\u2019ll give an example to help clarify. \n\nSo depends on how the deal was marketed. For instance I\u2019ve sold a mixed use development project and this is the way the sales contract was drawn up: We bring a deal directly to seller and there\u2019s no broker representing the purchaser we will get 3% of the negotiated purchase price. There is also a bonus clause if certain benchmarks were met. If a party comes to us that is represented by another broker our team gets 2.5% and the other side gets 2.5% which comes out to a full 5%. \n\nI am working on a deal right now where if we secure a buyer, my team gets 3% and any outside brokers must be paid by their client.\n\nIt will of course vary across asset classes and such and I tend to find it tied to the pedigree of the asset/ ownership.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hynoa66", "text": "In Florida it\u2019s typically 2-4% for one side of a deal.", "replies": [{"id": "hyny4yk", "text": "That includes the broker fee too?", "replies": [{"id": "hyo146b", "text": "It\u2019s just 2-4% to the agent side. Anything Else is your business", "replies": [], "depth": 3}, {"id": "hyo4azj", "text": "Your split with your brokerage is none of the reciprocal agents business.", "replies": [], "depth": 3}, {"id": "hyqe9w3", "text": "In my state, all and any commission goes to the broker.  I then get paid by the broker an agreed upon percentage of that commission.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyrnn2o", "text": "With all due respect, I feel like this is why we as agents get a bad reputation. The way you're asking the question raises several additional questions:\n\n- it sounds like you're representing the developer, yes? \n- is the property listed or is it off market?\n- are you a licensed agent? Do you typically handle commercial or residential transactions? \n\nThe reason I ask is because it could change the answer. The amount of commission is correlated to the value you're adding. If the property is listed, then you should be getting 2-4%. If it's off market, you should still be getting 2-4% but your client may need to pay you. If you have a relationship with them, that shouldn't be a problem. \n\nI see a lot of agents get an MLS alert, try to show a property to a very likely prospect who is well known in the market, add zero value, and still want a commission.", "replies": [{"id": "hytywdc", "text": "I'll ignore what you wrote about bad reputations - and I appreciate patience, empathy, in this situation. To answer your questions:\n\nit sounds like you're representing the developer, yes? **Yes, I am a partner in ownership group.**\n\nis the property listed or is it off market? **Off Market**\n\nare you a licensed agent? Do you typically handle commercial or residential transactions? **I am a new agent and this is a commercial transaction. I'm also a developer.**", "replies": [{"id": "hyu7rnb", "text": "Interesting. You originally asked what a standard commission would be, but you're brokering a deal for which you're a partner of, which is not standard.\n\nIf I'm a partner in a deal and a broker brought me an offer I wanted to take, I would gladly pay them. \n\nIf you're asking about what you should get paid, well... I think it's up to what your partners are okay with. If you're a new agent, I would assume the majority of the value you added was because you're a partner (whether you brought equity to the table or otherwise). Therefore, I'd assume you would not get any commission in this scenario. \n\nAlso, you didn't ask, but $30k / unit for an entitled condo deal in Seattle seems low, but im on the east coast so I don't know your market.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]