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Q. what is the usual commission for a commercial real estate agent when selling land for commercial purposes? Is it negotiable? How many differnt Market Analysis should a seller get before deciding on an agent?
It really depends on the value of the land and the value of your contribution to the sale. If the tract is, say $20,000, I would charge 10%. However, if the tract were worth, say, $2 million, I might charge as little as 3% if I were both the listing and selling broker and I thought it would sell within a reasonable time without a lot of hassle. If you are the owner of the land, and it is a valuae tract, I believe you should get a formal appraisal as well as a market analysis from a broker who devotes a substantial amount of his/her time to commercial land sales. If you need further help with the issue or you need help locating a responsible broker or appraiser, email me at email@example.com. There would be no charge to you for me to assist you. BILL CHERRY, DALLAS BROKER-REALTOR. MY 43RD YEAR SERVING TEXANS.
Hello, as Bill states, a lot of it depends upon the value of the land and yes, the commission rate is negotiable. If you don't mind me asking, where is the tract located? That would also factor into the commission rate. Again, depending upon the value of the land, I would have several agents do CMA's for you and if the land is worth a considerable amount, I would do as Bill says and get a professional appraisal done.
I failed to address whether or not a real estate brokerage commission/fee is negotiable. I'm sorry. The amount and the manner in which a real estate agent or broker will be paid is ALWAYS negotiable, but it needs to be specified in the listing agreement, and not argued about after the sale has been negotiated. In fact the payment doesn't have to be a percentage of the sales price. It can be a flat dollar amount, it can be two horses and a sack of potatoes, it can be a new Jaguar. It can be a trip around the world. Or if times are tough, it can be a cup of coffee and a donut and a joint prayer that things will get better soon. BILL CHERRY, DALLAS BROKER-REALTOR. MY 43RD YEAR SERVING TEXANS.
I agree with both of the gentlemen above. I would add that so many variables enter the picture when working with commercial real estate. If we're talking land only, has a "PUD" (planned unit development) been filed? And if so, what restrictions and/or limitations are potential buyers subject to? I too, would interview several commercial Realtors and obtain "realistic" comparables. You may find one real estate agent will fluff the comparables and suggest a higher list price just to get your business. Look at 3 or 4 and be realistic about your expectations. Like Bill, I'm fairly connected in the Missouri marketplace. Let me know if I can be of help to you! firstname.lastname@example.org
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