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Laura, Other/Just Looking in Chicago, IL

what is the "average" comission rate for a broker on vacant land in new york work approx $20MM?

Asked by Laura, Chicago, IL Thu Oct 23, 2008

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it is correct that agents are not allowed by law to discuss commission rates. You should contact some local commercial brokers and they can quote you what their company rates are. more important ask them what you will receive for that rate, some charge less but yiou get less. make sure you are getting the services you want and or need. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Oct 24, 2008
Tammy's answer is absolutely correct -- there is no "average" commission rate, at least not in the terms you're asking. Obviously, there is an "average" in the sense that if you added up all the commission rates in New York, you'd come up with an average. But real estate agents aren't allowed to discuss commission in terms of what other people might be charging.

Your question is a little confusing insofar as I don't know which side you're on. It is general practice in New York for the seller to pay a broker's commission on most types of real estate, including raw land. So if the property is currently listed with a broker, most likely the seller is paying that broker (and cooperating brokers) a commission. So if you're thinking of buying such a property, you should call a broker, make an inquiry, and find out whether you're going to be expected to pay a commission.

If you're thinking of selling such a property, then, again, you should call a broker and make inquiries on what the property might actually be worth in today's market and what a broker would charge for the types of services you need.

Finally, if the implication of your question is that the commission should be lower on such a large-volume piece of property, you're probably correct. But that would depend on the broker and the services you require.

And as Tammy says, if I was selling a potential $20,000,000 piece of property, I'd probably call a few good brokers to get some of their thoughts on it.
0 votes Thank Flag Link Fri Oct 24, 2008
Agents are prohibited by law to discuss commissions with each other or to comment about an "average" commission. There is no average or going rate when it comes to commission. Commissions are always negotiable.

Each company offers it's own level of services and qualifications . Interview some firms and find out what you will get for your money.

I think you were stating that the property is worth approximately $20 million. How do you know? In any case, that type of investment certainly demands care and due diligence, It is worth your time to investigate a couple of companies and ask many questions.
0 votes Thank Flag Link Thu Oct 23, 2008
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