Not Sure Where To Post This: A "What Kind Of Commission Should I Get For This Deal" Question
I am in the multi-family management business and recently turned one of our owners on to a property I knew could be bought for the right price.
* The property was not listed with a broker. This was just my current customer calling this ownership group asking if they would be wiling to sell this property and it went from there. The buyer is also not represented by a broker.....just lawyers involved in the negotiating.
* I gave the buyer some fairly extensive past history info on the property and even helped prepare anticipated budgets for after the sale rehab work.
* The sale is moving forward and should be concluded over the next 60-90 days.
* Once the property is purchased by the new owner, they will hire my firm to manage it.
*The sale price will be roughly 3 million dollars.
Here is my question: I am a registered Real Estate Broker and want to figure out what I can legitimately ask for as a far as a finders fee or referral fee goes.
I'm not in the business of selling props, I just have the license because I have to by state law to be the owner of a real estate company.
My initial thought is that this would fall under the referral umbrella, which is normally 25%-30% of the 4% commission that would be generated normally for a deal of this size.
Does anyone have any advice for what I should ask for....keeping in mind that this is a customer and I will be getting the management fee also.
Thank you in advance.
I guess you already know this should have been discussed and agreed on up front.
As the seller I would not be offended if you asked for 2%- but since you did not make this clear up front I would settle for a percentage of that - even 25%..
Gregg
[addsig]
Congratulations on making a sale. I hope you are protected in writing. I agree with Gregg…tell them (don’t ask) that the market fee for this transaction is 2%. Good luck!