To sell apartment building, find specialist agent – article from Beacon Journal
Avoid those who focus on house sales; listing for $3 million should get break on commission
Posted on Sat, Sep. 02, 2006
By Bob Bruss
Q: We are considering listing our 48-unit apartment building for sale. We have spoken with two Realtors. We would like to know what commission to expect to pay on a $3 million sale. The standard rate for houses in our area is 6 percent. One of the Realtors wants a flat commission. The other has some sort of pyramid-style system involving starting out at 10 percent and going down to 3 percent after a certain amount, all combined together. What guidance can you give? — Ellen A.
A: You need a specialist who sells only commercial and apartment buildings. Stay away from agents who specialize in house sales. Real-estate sales commissions are negotiable, especially on $3 million income property sales. According to Real Trends, the average home-sale commission is now 5.1 percent, so your commission should be less than that. Interview at least three apartment and commercial-property sales specialists who sell apartments in your vicinity. Listen to each agent’s listing presentation, including his/her quoted sales commission rates. Let each agent “sell” himself or herself to you, not necessarily based on the commission rate alone. Check out their references of recent sellers of properties like yours before selecting the best agent for your situation.
posted by S. Dreznin