Question on commission for a building that is not listed on the market?
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[{"id": "i1gqkpw", "text": "See if your buyers are ok eith you asking for 900K and see what happens.", "replies": [], "depth": 1}, {"id": "i1gqm9b", "text": "Ask for 3%, take 2%. In the future, always have it in writing before you even send a listing to a client, outlining who will pay commission, what percentage.", "replies": [{"id": "i1gssly", "text": "Uhhhhh hahahahah.\n\n1% is normal for transactions over $10M. \n\nAnyone telling you 2-3% is probably pretty new.", "replies": [{"id": "i1gwn7p", "text": "So you're an expert on the market OP is discussing?  Specifically medical?  Maybe I missed that.  I see anywhere from 1-4% on deals this size all over the country.  And I'm ancient.   So: Uhhhhh hahahahah back at yeah, ya confident expert.", "replies": [{"id": "i1h3449", "text": "take your meds", "replies": [{"id": "i1h3eih", "text": "About as thoughtful and intelligent response as I expected.  OP, disregard this troll.", "replies": [{"id": "i1h4iry", "text": "No but really stop flushing your meds down the toilet because you're fucking mental.", "replies": [{"id": "i1h4sjz", "text": "OP, you can clearly disregard this person\u2019s feedback.  Like many these days, her accusations are confessions, and her input crass and uneducated.", "replies": [{"id": "i1h504n", "text": "Look how upset you're getting. Albuquerque CRE must be stressful AF, lol.", "replies": [{"id": "i1h548l", "text": "Now you\u2019re a stalker.  Weird.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "i1hn4wc", "text": "I know a guy at a national brokerage who just sold a $70MM deal and got 5% on it last year. Damn newbies.....", "replies": [{"id": "i1hohva", "text": "I know a guy with a 2 foot dick", "replies": [{"id": "i1hy3pb", "text": "I shared that with you in confidence", "replies": [], "depth": 5}, {"id": "i1hy5rh", "text": "Will you give me his number", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "i1hpepr", "text": "Medical is super niche, I have a buddy that does surgery centers and they routinely pay 3%+ on $10m+ deals", "replies": [], "depth": 3}, {"id": "i1huxg8", "text": "No harm in asking. I\u2019m getting 3% on a $15M+ deal. Also depends on the asset type and class, investor profile and location.", "replies": [{"id": "i1iwe27", "text": "Landlord of 80+ properties here.  Yes, there is harm in asking.  Brokers asking ridiculous terms lead to my company refusing to work with them.  And this sentiment among owners is not new.  Don't burn a bridge you may want to cross later on.\n\nAs brokers, you want to get on the right side of a Buyer/Seller.  Brokers are a dime a dozen.  Property owners and real estate buyers are not.", "replies": [], "depth": 4}], "depth": 3}, {"id": "i1izti9", "text": "There is no normal. Commissions are negotiated. I\u2019ve collected 2-3% commissions on deals over $10m", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1hbyqi", "text": "In utah we pay roughly 1%-1.5% for deals that size.  Lots of the bigger deals I\u2019ve seen I\u2019ve the buyer rep paying for a part of it. It would help to be transparent with your buyer up front about what you hope to make and how comfortable they are with what you include in the offer. Sometimes they might even make up the difference if the deal is desirable enough.", "replies": [{"id": "i1hejqu", "text": "I just lurk this sub. I\u2019m not in this space at all. I live in SLC. How is the commercial real estate business, It seems Fugal has a monopoly on it.\n\nEdit: this might also just be perception because I see his name on so many buildings.", "replies": [{"id": "i1yfsm7", "text": "Funny enough I work at Colliers with him in the Utah County office. He\u2019s usually in salt lake. He gave me a donut the other day haha. \n\nWith the right connections this business is amazing. If you\u2019re starting from scratch it\u2019s really hard to make good money. Lots of rejection and endurance to make a living. Lots of people are investing into Utah so it\u2019s been a great time overall. Utah commercial real estate needs have no signs of slowing down, on the contrary it\u2019s growing at an alarming rate.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1hu0t9", "text": "Bravo OP! Nice deal.", "replies": [], "depth": 1}, {"id": "i1i4e0b", "text": "If there's any chance this deal is real, then you would know the answer to this.", "replies": [], "depth": 1}, {"id": "i1ihiw5", "text": "There are many buildings which are not listed online but you can approach by contacting Condo Alias as I have been getting the services from [Xondo.ca](https://Xondo.ca) as they are pretty good with the advice, history, lawsuits, pending and the **price bracket**.", "replies": [], "depth": 1}, {"id": "i1ioxyz", "text": "I transact exclusively in the healthcare space. I would say our deals of this size are almost always sold directly to institutional buyers but with a fee of about 1% total. Because he hasn\u2019t given you a clear picture, just word the offer as \u201csubject to a fee of x%, or 50% of the total fee, whichever is greater\u201d. My recommendation for x would be 1.5%, and go from there. Any larger and your ask could make your buyer\u2019s offer less competitive than the institutional offers in terms of net proceeds.", "replies": [], "depth": 1}, {"id": "i1j4542", "text": "It\u2019s what you negotiate but the later in process you bring it up, the less your commission will be. You should do this before you send the deal best case scenario. Otherwise u are on outside looking in.", "replies": [], "depth": 1}, {"id": "i1kcbsz", "text": "150k - make sure its in the LOI. Ask whatever you want good brokers are not a dime a dozen but everyone and their mama is a cre investor lp equity investor these days. They are a dime a dozen.", "replies": [], "depth": 1}]