Hey everyone, I have been looking at a couple MF buildings lately, and I am wondering what is fair market value for MF Realtor Commissions. As the investment becomes larger, what is the typical commission scale? Thanks!
3 million +/- 500kHow big an approx building value ?
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That makes sense. As expected, some of the buildings I've viewed are not listed, nor has the realtor really done that much work to list or market the building. So, I am ware this can be a sensitive subject, but I'm just trying to get a sense of the general commission range.I think it depends on how much interest you want to generate from the estate community. I listed a $7.9 MM property in April in Kitchener, Ontario. Commission was 4 percent with half offered to the co-operating Broker. In the 30 days, we had over 60 showings - with 13 offers - and the building sold for over $625,000 over asking. The seller had no issues with my commission
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I think it depends on how much interest you want to generate from the estate community. I listed a $7.9 MM property in April in Kitchener, Ontario. Commission was 4 percent with half offered to the co-operating Broker. In the 30 days, we had over 60 showings - with 13 offers - and the building sold for over $625,000 over asking. The seller had no issues with my commission
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I think you get what you pay for. You pay peanuts, you get monkeys. You pay a reasonable commission, every multi-res apartment expert in Ontario makes an effort to sell the listing. Seller paid me $300k and won an additional $625K over list. Thomas: you may disagree, but if I was seller, I would pay that all day long - with those results - on any of my properties. Mike
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Around 3% is the norm. Many brokers do not cooperate with others and some actually charge the buyer! Since most buyers are sophisticated vs. Not in SF many listings are exclusive and double dipping is common place and it never hits MLS. If your buying what concern is the commission?
Hi Mike and thanks for your input, however the question was asked what is the typical commission selling a multi, and I have sold several and paid 2.5 to 3% commission so that is my experience. Your comments about collusion make no sense, or have any basis in this discussion. I 100% agree with Thomas that 4% on a sale that large is ludicrous, and the seller was either grossly misinformed, you robbed him blind, or both.