Is 7% commission reasonable for this commercial listing?
Selling land and a warehouse in the Midwest; $475k list price.  I've read that 4-8% is the standard commission for properties under $1MM.  Does 6% seem reasonable or should I shop it?
[{"id": "gpqkk97", "text": "6% is reasonable but push for 5", "replies": [], "depth": 1}, {"id": "gpqkt3n", "text": "Is it in the loopnet?  Costar these are the only places investors are looking for and advertising fee is very expensive these days.  If realtor only put on MLS you are likely get little response.", "replies": [{"id": "gpql68a", "text": "True in some ways, we tend to look for stuff that hasn\u2019t hit Loopnet yet. The best brokers are those with the relationships to put your land in front of the right people without the need for loopnet/costar.", "replies": [{"id": "gpqq9pt", "text": "Do brokers that post on CRE sites \"need\" the platforms they post on or are they trying to maximize exposure for their sellers?", "replies": [{"id": "gq0on73", "text": "Typically trying to bolster exposure, but good sites almost never make it to loopnet as someone like me finds it or a broker takes it straight to a developer.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gpqltiu", "text": "Does that include the buyers commission? \n\nFormer broker here. I always came in slightly higher with the anticipation I\u2019d get asked for a discount. It\u2019s not rude of you to ask. \u201cCan you do _%\u201d it\u2019s that simple. \n\nI\u2019d say 7% is fair though if there is a buy side broker, because for that size, the buy side broker might want 4% or 3.5% split. And then 5% if your broker is double ending the deal.\n\nYou still want them motivated to share and work with other brokers for the highest price. You\u2019d essentially be stepping over the dollar to pick up the nickel by trying to squeeze their commission to the point they are won\u2019t want to work with another broker. \n\nAlso as someone mentioned, marketing costs are high now days if on LoopNet. Also, many cre firms split 50/50 with the house.\n\nSo, $475k (3.5% split 50/50 with house) could end up being around $8k to them.", "replies": [], "depth": 1}, {"id": "gpqo7gz", "text": "Am I the only one charging everyone 10% on everything under $2mm?  Dang, I do a lot of land deals and I don\u2019t ever entertain going below 10% until I\u2019m over the two mil mark. Even then I push back pretty hard.  I have two separate deals right now just under $4mm that are at 8%.", "replies": [{"id": "gpqtvmt", "text": "That\u2019s a fat spread", "replies": [], "depth": 2}, {"id": "gpr1jgo", "text": "What kind of monopoly do you have where you charge 10%? That's absurd.", "replies": [{"id": "gprytwl", "text": "I go above and beyond on marketing so have developed a pretty good reputation, I know I\u2019m on the high side but I\u2019m also not the only one pushing those numbers. I obviously negotiate further as as the price goes past $3m but I generally reduce that rate slowly.  I\u2019ve also found that holding strong in a listing presentation, especially when they tell me xyz said they can sell it for half that, is the time to keep firm end show my value.", "replies": [{"id": "gptki0s", "text": "Yep.  100%.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "gprjpt1", "text": "I\u2019m shocked and oddly impressed. The several land  deals I\u2019m working on right now, most of which are off-market, the seller typically won\u2019t offer to pay a commission. The buyers (regional and National home builders) are willing to include 3% or less for us, depending on the size and our level of involvement. For context, I\u2019m in the $5M-$10M range.", "replies": [], "depth": 2}, {"id": "gps05kk", "text": "I have a couple land deals at 10%.  I also do all M&amp;A at 10%.", "replies": [], "depth": 2}, {"id": "gpth2om", "text": "10% where I'm at.  We keep that up until like higher 8 figures.  We will occasionally do 8%.  Of course you will get people who try to haggle but most have no problem with it.\n\nBy the way if another person brings a buyer we split the commission in half (of course).\n\nIf a person wants to pay a cheap commission like 3%-4% or something I just move on.  I might as well target people who will pay me what I ask and do fewer deals than to do cheap deals and work harder with more headache.  It  just isn't worth it to me.  I feel I might as well do residential after a certain point.\n\nWe work very hard and do marketing and work for our clients and get deals under contract fast with high offers and multiple bids.  People can choose to go cheaper if they'd like but they also will sacrifice in other areas.  The agents my clients used before often did nothing but slap it on the MLS and nothing after that.  I have connections with several large companies and market every single day.  Commercial deals can often take over a year and have a high chance of falling out so they are also risky.  If it fails I get nothing.  So I'm taking a large risk on it.\n\nI explain my value and get the commission I want.  I feel it's all about selling yourself.\n\nYou're definitely not the only one.", "replies": [], "depth": 2}, {"id": "gpveszb", "text": "jfc in my market 3% is standard lol. but then again there's few deals lower than 2m", "replies": [], "depth": 2}, {"id": "gqb24hj", "text": "That\u2019s nut - great for you. Out of curiosity what part of the US are you in? I work on a lot of land deals in the SW and it is almost always 6%...", "replies": [{"id": "gqehkhh", "text": "Southeast. I don\u2019t think I\u2019ve ever done a land deal at 6 percent, even at $10mm.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gqnssqa", "text": "What markets are you in? I'm in a major city in Texas and would be laughed out of a prospects office if I asked for 10%", "replies": [{"id": "gr319ls", "text": "Most of my work is in nc and sc.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gpqsx2w", "text": "It will vary by market area. Where I am it\u2019s typically a 50/50 split on 6%. As the deal value increases, the commission percentage decreases in most cases. I can only speak for my neck of the woods though.", "replies": [], "depth": 1}, {"id": "gpry2yl", "text": "Depending on area we pay either 6% or 7% so not surprised by the ask but no harm in countering for less", "replies": [], "depth": 1}, {"id": "gps2woj", "text": "7% is normal. Cost way more to market a commercial listing than a regular house.", "replies": [], "depth": 1}, {"id": "gq64hxs", "text": "My market that size deal:\nNo co-op broker 4-5%\nW coop broker 6", "replies": [], "depth": 1}]