How much commission should I expect to pay on a land sale?
Selling raw land for $3mm.  What range of commission should I expect to pay?  If the broker is repping both sides?
[{"id": "hia2xlk", "text": "Oh man this is a dreamboat for whatever broker is handling this. Vacant land tends to be a higher commission because realistically it sits longer than most buildings (at least in our inventory). We charge 6-7% for a normal building and 8-10% for vacant land (market rate considering 2 brokers will split it). That being said, if theres no commission split I'd say 7-8% would be sufficient if you don't mind waiting for the deal to come to you, 10% if you want white gloved service that will go get it sold in your time frame.\n\nEdit. Also on deals of that size, we usually cap the commission at like 200k regardless. 8% would be 240k so I'd suggest pitching 200k (they should be well fucking pleased for the amount of work this realistically requires) and if they fight it find a different broker.", "replies": [], "depth": 1}, {"id": "hiamhd6", "text": "Commenting as head of acquisitions for a large development company.  I always look at what the brokers are taking off the deal.  5% max regardless of whether or not there are brokers on both sides.  If it's a long term escrow where the seller is giving me time to close with permits or entitlements then 5% is ok.  \n\nIf they drop it on the market and expect a quick close (which, as brokers, they always do because brokers only care about getting paid asap) then they're not getting more than 3 or 4 percent.  4% if there are two sets of brokers and 3% if it's direct.\n\nThe buyer is ultimately paying their fees and it's only suckers that pay brokers more than 5% on commercial deals.  \n\nAlso, we never pay more than $500k in total commissions on a deal.  That's the cap regardless of if it's a $10 million deal or $50 million deal.  \n\nI can understand if residential agents ask for more if they're selling a $30mm house that takes a ton of marketing, staging, etc to sell.", "replies": [], "depth": 1}, {"id": "hiaoho3", "text": "Depends on where you're located. If you're out in the middle of nowhere then you probably have to pay a higher fee. Where are you located?  \n\n\nIn my area (Seattle), I charge 5-6% for land but it really depends on how difficult the land is. Flat, no contamination, utilities on site, good zoning, that's an easier deal to put together. If it's got a lot of hair on it then I might charge more.", "replies": [], "depth": 1}, {"id": "hibobes", "text": "In CA it was 5% each way land unless in urban quick sales is harder to sell. If the broker double ended I would ask for a discount. 8%.\n\nThat being said, does the realtor have a huge $1000 bill board or hang a small sign. What else does he do?  Is it listed in Loopnest and other commerical sites?  If not you can offer 2.5-3% for each transaction. Loopnet advertising cost is not cheap hardly by the month. A listing agent can be quickly $1500 in the hole if he can not sell and get fired not able to sell it quickly.", "replies": [], "depth": 1}, {"id": "hici6bd", "text": "More info needed.  Did you hire the broker to market the land, or did they approach you with the buyer?  If you listed with the broker, I would expect the fee was laid out in the listing agreement, no?\n\nLand deals are often far more complex and time consuming, depending on the entitlement and permitting process.", "replies": [{"id": "hid3ebh", "text": "The land was not listed, the broker brought an unsolicited buyer/offer. The property is located near a top US metro. The offer and the property are both straightforward.", "replies": [{"id": "hidqime", "text": "I think 3% is fair, even generous.  Maybe some other land folks can chime in on what market fees are in the space, but the broker didn\u2019t incur any listing or marketing fees and isn\u2019t entitled to a full rate.  Unless dual agency is allowed in your state, they are also not representing you or your interests - they\u2019re looking out for their buyer and/or the transaction.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hido0j8", "text": "$3mm-6mm I do 10% for double sided and 8% for single.", "replies": [], "depth": 1}]