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houdinibini, Other/Just Looking in Glendale, CA

What is the going rate for commissions on commercial property?

Asked by houdinibini, Glendale, CA Thu Aug 16, 2012

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Kathleen Becker ’s answer
It depends on the length of the lease. It may be 6% to 10% or more of the full years gross lease or it may be a flat rate.

It all depends on what is negotiated with the owner/landlord.

All the best,

0 votes Thank Flag Link Wed Aug 29, 2012
I usualy charge 5% to 6% and you get much more than that in value....

Some people think that because the transaction value is $5million in value, the commission should be lower... I disagree. I think I provide value relative to the value of the transaction and I should get compensated according to the value I provide to the clients... I have saved people up to 1/2 million dollars in negotiations... which dwindled in comparison to my commission...

Also sometimes people think they are paying me to handle their transaction... they are actually paying for what I know and how I negotiate... my 12 years experience.. my team of over 100 people all my degrees all my connections and network... you pay for access to all of that... not just for me to take a picture and put it in the mls.

Hopefully this helps you and remember very ofyen you get what you pay for, but you have to be a wise negotiator and understand that value not always comes in the form of a dollar.
2 votes Thank Flag Link Thu Aug 16, 2012
You are out of touch with reality.
Flag Wed Dec 30, 2015
Well said and absolutely true. Thank you. Know your value is key.
Flag Sat Nov 28, 2015
Agents who work for a lower negotiated commission de-value the service and value we provide. Also, to discuss commission rates violates anti-trust law.
Flag Fri Oct 24, 2014
All real estate commissions are negotiable.It is not a fixed rate.
1 vote Thank Flag Link Wed Jun 26, 2013
I agree. Commission should not be same as for 50000 property and 5 million property. I always talk to broker/realtor and get something in writing for the commission. Recently I was working with a realtor where he was supposed to refund me 50% of commission and 5000 max cap on his commission. I believe this is the fair model, since most of the buyers and sellers do their own research for property.
Flag Sun Jul 13, 2014
There is no fixed rate. It is negotiable. However, depending on the value of the property in question and the level of service necessary to position and market the property, the commission could be anywhere from 3% to 10%. Remember that commissions are split between the listing and selling agent and their brokerage. Depending on your urgency to sell a higher commission could garnish a lot more attention.
1 vote Thank Flag Link Fri Aug 17, 2012
Hello Houdinibini,
Like everything in real estate, commission is negotiable. However, you will find that commercial is slightly different than residential. It really would depend on the type of commercial listing it is. If it is land, you can expect anywhere from 8-10% coming downward to 5% based on price, etc. Improved properties, it may be possible to do a 4% listing with 2% going to each side, but one thing I would want to stress with you is this... a buyers agent is fully aware of the amount they will be paid prior to showing the property to their buyer, so if you try to go cheaper, the less chance of getting your property shown... the better you pay, the more activity you will receive. I would be pleased to assist you. Please contact me. Thank you.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ - - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
1 vote Thank Flag Link Thu Aug 16, 2012
This all great but what is commission rate based on; 10 years of the base rate?
0 votes Thank Flag Link Tue Nov 17, 2015
Rates are negotiable.Remember that just because a rate might be seem right, you must consider the persons expertise along with how they plan to market it. When one takes a listing you need to realize that there is expense to marketing the property and a time element on how long it will take to sell the property.
0 votes Thank Flag Link Tue Mar 24, 2015
Everything is negotiable in real estate but the "Norm" is around 6%

Please let me know if you have any other real estate-related questions!

Alex Khalilifard | Realtor - General Contractor
Listing and Selling Agent
Direct: 818.925.8088
0 votes Thank Flag Link Mon Mar 16, 2015
It is ILLEGAL for any licensed agent or broker to discuss commissions in a forum such as this. it violates the Anti trust laws. you should discus this with your broker or firms legal department. To find out what a company charges simply call and ask them, they can tell you what they charge and what you get for what you pay. No agent can discuss what anyone else charges
0 votes Thank Flag Link Fri Aug 29, 2014
It is not against the law to discuss what you charge as a commission. It is only against the law to conspire with others to set commissions. It little bit of knowledge can be dangerous Scott. Be careful when you give legal advise as that IS illegal.
Flag Sat Sep 20, 2014
Scott, that is the dumbest comment I have ever heard. Nobody here requested a quote on a commission. Grow up, you know why they asked. General knowledge.
Flag Thu Sep 18, 2014
Anything that will educate people or is profitable is ILLEGAL IN THIS COUNTRY NOW !!!!
Flag Tue Sep 16, 2014
what can i do for start a high commercial business?
0 votes Thank Flag Link Fri Aug 29, 2014
All commissions are negotiable. They are generally similar to residential, but sometimes can be higher.
0 votes Thank Flag Link Wed Mar 19, 2014
There is no actual "gong rate" but each property is evaluated and commission is determined by that. I have heard everything from 10% and upwards.
0 votes Thank Flag Link Wed Jun 5, 2013
all comission is negotiable. Check out other commercial listings in your area and see waht other people are paying in comission. That will give you some leverage to negotiate with us agents. I would say somewhere between 4-10%
0 votes Thank Flag Link Sun Dec 9, 2012
Commission is always negotiable for residential or commercial. Search for similar properties in your price range and see what others are charging in general.
0 votes Thank Flag Link Thu Aug 16, 2012
Commission is always negotiable between you and your agent, there are no set standards; therefore choose your agent with care and not by commission alone...
0 votes Thank Flag Link Thu Aug 16, 2012
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