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Updated almost 8 years ago on . Most recent reply

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Daniel Smith
  • Studio City, CA
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Who pays the commission on a commercial property sale?

Daniel Smith
  • Studio City, CA
Posted

I know that in residential sales, the seller usually pays the commission. However, on loopnet I see a lot of listings that mention a "commission split". Is this customary for commercial transactions? Buyer and Seller each pay 3%?

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,144
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied
Originally posted by @David Faulkner:
Originally posted by @Russell Brazil:
Originally posted by @David Faulkner:
Originally posted by @Russell Brazil:

About half the commercial deals I do in my market are paid for entirely by seller, And the other half seller pays his agent and buyer pays his agent. I have a friend who only does restraunts and in his business I think about 90% of the transactions each principal pays their own agent.

And many times the buyer's and seller's agent is the same guy ... double ending commissions seems to be far more common in commercial than it is in residential, at least in my market. For DC too?

 Yes that is more common in my market for commercial. In fact in residential, in Maryland the same agent can not be on both ends of the deal, but commercial they can be.

 CA it is legal for agents to double end on residential (and commercial), just has to be explicitly disclosed in the standard purchase contract. It would seem that commercial may be much more profitable as an agent in Maryland then, all other things being equal, which of course they never are.

Hard to say. I know a few successful commercial guys, but I know hundreds of successful residential guys. Might just be that Im more in the residential space....but there's plenty of money to go around for everyone. 

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