Commission question
What’s the commission on $435 000 000? I’d you’re buying up property to redevelop into say townhouses?
[{"id": "emyfvzp", "text": "Tree fiddy", "replies": [{"id": "emym8bh", "text": "$435M?  Typical commission is 3% of purchase price  or lease value to both buyer and seller agent.  Seller/LL pays this 6%.\n\nCapital markets and larger purchases typically receive closer to 1-2% but the deals are larger.", "replies": [{"id": "emyp9oq", "text": "Would $435M fall into the larger category? And do they calculate the commission off the lease income over the term of the lease? Do they discount the future cash flows to today\u2019s dollars?", "replies": [{"id": "en21piw", "text": "$435m is probably a 1-1.5% commission.  \n\nFor leases, yes they pay on the full lease value and they  do not discount the cash flow.  Those would be standard market commission but everything is negotiable.", "replies": [], "depth": 4}], "depth": 3}, {"id": "eneedgx", "text": "Dude a $435mm sale would be like 0.25-0.5% depending on what asset class literally no one ever has paid a 3% commission on a sale that size let alone a 6%. Also I have never come across a broker representing a buyer in a transaction of that magnitude they\u2019d get told to pound sand and wouldn\u2019t get paid by anyone.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "en0n1j3", "text": "on a 435M deal the seller will most likely negotiated a flat fee in the beginning. It would probably be .25-.5% of the total purchase price", "replies": [{"id": "en0qx03", "text": "Ah ok thanks for that", "replies": [], "depth": 2}, {"id": "en46ou9", "text": "In that realm they are usually talking basis points.", "replies": [{"id": "en4awp4", "text": "Correct between 25-50 of them as I wrote above", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "en1cp7m", "text": "All commissions are negotiable.", "replies": [], "depth": 1}]