What is the typical RE commission on commercial sale?
I know this may vary market to market, but I have a 3700 sf commmercial property.  Warehouse/flex space type property.  What would typical commission rate be on a sale?  Just got quoted 10% from the realtor that I am working with on the buy side of another property.  Seems high.
[{"id": "i9jyg0g", "text": "Where I am it would be 4.5-5%. What is the approximate value of the building?", "replies": [{"id": "i9k20oe", "text": "Ballpark 300k.", "replies": [{"id": "i9k2eke", "text": "Yeah, here it would be closer to $2M, you should contact a few more brokera and see what they quote.", "replies": [{"id": "i9kqfrx", "text": "$2m for a 3,700 sf flex building? Where are you the moon?", "replies": [{"id": "i9kqnwc", "text": "Basically, yes, Toronto", "replies": [{"id": "i9lhmcv", "text": "Ha yup.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "i9miesy", "text": "If there aren't any special commercial skills, you could also look for a broker that does mostly residential real estate.  I see a lot of that done in my area for smaller commercial buildings.\n\nEspecially if it's just the real estate being sold vs the business.  For example, if you're selling the building that's being rented out to tenants, or you're closing a business you've had in the building.  But if you're trying to sell the building AND the business, you may need more expertise - and access to the buyer lists of a commercial broker.\n\nEither way, shop around.  Residential brokers can easily range from 2 to 7%, so I'm sure there's a variety in commercial broker rates, as  well.", "replies": [{"id": "i9mjb31", "text": "I\u2019m building a larger facility for my business, will be just the real estate at existing location.  Just seemed like 10% was high.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i9jypp3", "text": "I\u2019ve seen commissions all over the place on commercial.  10% isn\u2019t uncommon, but so is far less.  Unlike residential it\u2019s really hard to talk about \u201ctypical\u201d.", "replies": [{"id": "i9k4jb7", "text": "That is train robbery", "replies": [{"id": "i9k4ml7", "text": "It really depends on what the building is and the kind of marketing and work it\u2019s going to require, along with chances of an actual sale.  Commercial is a very different beast.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i9k2421", "text": "I would talk with as many realtors as possible.  10% seems high.  I think commercial commissions are a lower % than residential but I have never sold anything commercial.", "replies": [{"id": "i9k4r3e", "text": "They are not.  Higher, if anything.", "replies": [{"id": "i9lj7vo", "text": "I invest in multi-family commercial realestate.  I have never sold.  However, my understanding is that that commisions are between 2% and 3% in the transactions that I have made.  I don't have it in writing but, that is my informal understanding.  A 3 million dollar transction does not result in a $300,000.00 dollar commission.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i9le1z6", "text": "Do your research", "replies": [{"id": "i9ljd68", "text": "I am in the business.  Not in warehouses but in mutlifamily residentials.  Not 2 and 3 family but larger garden style buildings.  I do have some exposure.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i9k2fy5", "text": "I\u2019ve seen up to 10% for a real estate AND business transaction. But a baseline should be set at 6% and go down from there. Anything above 6% is highway robbery in my opinion. \n\nFor a property that\u2019s only 300k I\u2019d think 5-6% is reasonable.", "replies": [{"id": "i9k4qc4", "text": "Part of the problem is the property is only $300k.  A lower value property is going to require a higher, not lower, commission.\n\nThat being said, we don\u2019t know nearly enough to know what\u2019s reasonable in this situation.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i9k4ksv", "text": "What do these mosquitoes need 10% for?", "replies": [{"id": "i9kx3fv", "text": "That\u2019s $30k. Try getting any decent commercial broker to pick up the phone for $30k, let alone sell your building.", "replies": [{"id": "i9o8olf", "text": "Curious, what would the brokers expenses be on a transaction like this?", "replies": [{"id": "i9p14fx", "text": "Biggest one seems like time.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i9k6pbo", "text": "Honestly, you usually get what you pay for.  Most strong CRE brokers are not going to waste their time on a 300k deal without close to 10%.  The smaller the price, the bigger the percent.  \n\nA lot more work goes into a proper commercial listing/marketing campaign than a residential deal.  You are paying for that and the brokers database to help get it sold.  We honestly won't do a deal under $1 million because of the cost for underwriting, marketing, deal process and etc.is not worth the profit we would make.\n\nYou can find a discount broker who will just put a sign up outside and maybe list it on Loopnet or Crexi for free but thats usually not going to get it sold for the best price.\n\nThe same goes with the buy side deal you are looking at.  He is not going to waste his time shopping and looking for multiple deals without a proper fee.   30k barely covers time and cost if he's fully reviewing deals in that same size.  Because odds are you are going to be submitting multiple offers on multiple deals and he won't get paid until you find one.  Same amount of work goes into each one .\n\nIf you are using him just to submit paperwork, then maybe try and negotiate a flat fee for each deal or something like that if you want to save money.", "replies": [], "depth": 1}, {"id": "i9k8xgo", "text": "Whatever you can negotiate", "replies": [], "depth": 1}, {"id": "i9kf6mp", "text": "6% in my market", "replies": [], "depth": 1}, {"id": "i9kgj29", "text": "The bigger the value the smaller the % and vice versa.", "replies": [], "depth": 1}, {"id": "i9khr5l", "text": "OP, people saying 5-10% aren\u2019t wrong for your size of property, my response below is just so other readers aren\u2019t over generalizing.\n\nLarger transactions, like $10M+, brokers are not getting paid 5%. At $10M it might be 2-3%. Once you\u2019re at 20+ it\u2019s closer to 1%.\n\nPoint being it\u2019s all relative to deal size. Nobody is paying a broker 5% on a $1B office building transaction. You might get 20-30bps on that.", "replies": [{"id": "i9mvf74", "text": "Working a 2.7M deal right now. I started at 3% and the bastard worked me down to 2.5%. That\u2019s just for my side so total 5.5-6%", "replies": [], "depth": 2}], "depth": 1}, {"id": "i9kkyze", "text": "In my market typical is 6% for under a million. Over a million varies a lot.", "replies": [], "depth": 1}, {"id": "i9lf7d9", "text": "6% here in the northeast", "replies": [], "depth": 1}, {"id": "i9o6vy3", "text": "6/7% is standard in Central Florida.", "replies": [], "depth": 1}]