4 Responses to “How much commission would a real estate agent make off of selling a 3 million dollar apartment building?”

1. mister_pisces Says:
   December 4th, 2009 at 10:10 am

   You cannot collect a finder’s fee unless you have a real estate license..

   2.5% to 3% is the typical commission for the broker (who splits some portion of that with the agent)..

   2.5% of $3M = $75,000

   let’s say the agent splits between the broker 50/50. Then the agent would get $37,500.

   You would get $0 since you do not have a real estate licensce. If you somehow received a commision for the sale, you would be in violation for practicising real estate without a license.

2. michael_charge Says:
   December 6th, 2009 at 8:27 pm

   In Australia the majority of real estate agents work upon a 1.5% commission for properties under $1 000 000 and for values over that they would usually come to agreement with the prperty owner.
   This agreed value is most likely less than the 1.5%, closer to 1% therefore approx. $30 000 would not be out of the question. I would want to see the agreement of sale if I was you, but be careful, If you don’t trust the guy completely because legally he doesn’t owe you a cent.

3. firemedic311 Says:
   December 9th, 2009 at 5:48 pm

   wow nice find. well a standard finders fee in my book is 10% period. but this agent may screw u! if there is no contractual aggreement instructing him to perform a payment to u… he doens’t have to!!! u can yell and try to go to court and all but a contract only will save u!!!

   i buy and sell houses every month. i’m not an agent or realtor. i’m just a reg joe investor. i’d say get it in writing.

   i don’t use agents very much at all! i usually do it myself or i’d pay an attorney to do it all for a fraction of the cost. then just have the person u know give u a small fee from what he saved!!

   generally commissions are 3-6% of sale price. so in this case 100k-200k is going to the agents on both sides.

   i regularily do this, a much different way. the guy that wants to buy the complex i’d tell to leave the realtor out! (saving him potentially at least 200k (transfer taxes, closing costs etc are gonna eat up about 10% total when u use an agent!!!!)

   if i were the buyer i’d talk to the seller and discount the property like crazy!!!!

   depending on how motivated the seller is. i’d say he’s gonna lose 10% anyway with an agent on either end. his agent or yours.

   so lets take 10% off the price. then if the seller says yes

   have ur guy pay $10k for an attorney (still over 200k cheaper!) to close the deal, and ask him to give u i dunno… whatever u think is fair.

   potentially u could demonstrate u saved him 300k… but u just (not to be offensive… a ‘nobody’ u know i mean like, he could cut u out of the deal anyway. u didn’t do any work, just came up with “my advice”… so i bet if u saved him 300k, 20-50k is reasonable.

   and don’t worry i won’t ask u for my cut!! lol i don’t do a deal unless i make at least 40k anyways. i’m happy to help.

   good luck. but bottom line, recap… get a contract if u want your part! ahhh i’m about to goto sleep… but u can write the contract yourself. one page of paper that just names all parties and clearly states whats happening.

   ie: jon smith agrees to pay joan miller x amount of $ in return for finder fee services”….whatever…… blah blah.

   then have it signed and notorized (a ups store $10! or bunch of places do it as well)

4. ogrendle Says:
   December 9th, 2009 at 8:28 pm

   Many States forbid agents to pay fees as you describe unless you have a license. Where I am all we can do is take you out to dinner. Sorry

Leave a Comment

You must be logged in to post a comment.