Agent

Special agent needed to sell apartment building

What type of sales commission should owners expect to pay?

DEAR BOB: We are considering listing our 48-unit apartment building for sale. So far, we have spoken with two Realtors. We would like to know what sales commission to expect to pay on a $3 million sale. The standard rate for houses in our area is 6 percent commission. 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. DEAR ELLEN: You need an apartment sales specialist who only sells commercial and apartment buildings. Stay away from sales agents who specialize in single-family sales. Purchase Bob Bruss reports online. 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 or four apartment and commercial property...

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