What is a general formula for commercial real estate brokers earning commission?
by Admin - March 6th, 2010.Filed under: Real Estate Brokers. Tagged as: Brokers, commercial, commission, earning, Estate, formula, general, Real.
Both for leasing a space AND selling it.
For example: Say I am a broker and lease an office space for 3 yrs, it is 2000 sqm and is £30 per sqm. Would I get commision say 2% on the first month only? or three years? or 36 months?
March 6th, 2010 at 5:06 pm
For years you were given a percentage and it was fixed. Almost everyone charged the same. Now there is real competition. Some will charge a one-time fee that is not a percentage but you pay for all the advertising. They get paid if it sells or not. Others charge a percentage but it depends on how motivated you are to sell. If you want to ask 50% above the last “comp”, the percentage will be high because you will be for sale for 2 years. If you put a low price , the agents will get paid fast and time is money; they will charge less.
You may wish that i had just given you a “number” but we lost 8,000 agents in Phoenix last month. THey didn’t want to quit. The market forced them out. So you will get 5 different commissions from 5 different agents; and each one might be worth considering.
March 6th, 2010 at 5:10 pm
10% is the standard commission, both leasing and selling.