Buyers Broker commission - Commercial Real Estate

[Elizabeth Poshe]

Hello! I'm currently working on a deal with a listing agent. The site has been on the market for over a year and I found a buyer who's putting in an LOI next week.

When registering the client and discussing the co-broke fee with the listing agent he mentioned the owner is super cheap and is only offering 2% total to be split amongst us (1 & 1). I was shocked at such a low commission split!! (I have to split with brokerage, broker and team). 

My client is a huge firm and currently working on underwriting and asked me if the seller is paying my commission. I informed them it’s best I get paid from buy side and asked them if they can include 2% of purchase price in the LOI for me. They agreed and said not a problem. 

A weight has been lifted since the buyers agreed to pay me 2%. And I’m guessing the listing agent will get to keep the whole 2% from the seller now that the buyer is paying me. Win/win? 

Sales price is $8M btw, so 1% is a huge difference. 

What would you have done if offered 1%? Anything I should have done differently?