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Is Your Commission Negotiable?

3/11/2021

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​Many times, after making a real estate listing presentation I get asked will you negotiate your commission. When a commercial realtor makes a listing presentation they have spent a lot of time researching the property, your business, the commercial real estate market, who’s buying and who’s selling and they have developed a marketing plan that is specifically tailored to your property. After working on all the above the commercial broker will then determine what they feel is a fair and reasonable commission to market your property.

So, what does a commercial real estate broker take into consideration when calculating a commission. Here are a few considerations that commercial brokers look at.
  1. They share 50% of my commission with the Buyer’s broker. They do this because the other broker has worked hard to search for properties for their client and they deserve to get paid for bringing that buyer to the deal. They are paying them for their expertise which they will use to make the overall transaction better and potentially close faster.
  2. They pay for the marketing platforms that they will use to expose your property to the market. This can include internet commercial marketing websites and MLS’s, marketing brochures, videos, and virtual reality tours of your property. Technology is helping us to better market your property, but it does come at a cost.
  3. They belong to professional commercial trade associations such as CCIM, SIOR, marketing groups that are specific to commercial brokers. These groups allow for commercial brokers to have a larger pool of contacts that have clients who are looking for a property like yours. Without belonging to these groups these contacts would more than likely not be made.
  4. They have relationships with title companies, attorneys, accountants, and investment professionals that they can use to help save you money, time and more that likely provide a greater return on your property. 
  5. They have overhead expenses just like you. They pay for space, utilities, staff, internet & phone, business insurance, car expenses, etc.
  6. They pay themselves so that they can support their family.

The above is just a few of the considerations that a commercial realtor looks at when calculating your sales commission. It is fair to ask them how they are going to market your property, what technology they will use and what professional trade associations do they belong to so you have a clear understanding of what you are paying for.
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If you have questions or want further information, please feel free to reach out to Baker Real Estate, especially if you are in the Casper, Wyoming area.
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