Commercial Agents/Brokers - how do you determine how much to charge just to do paperwork?

[Tony Nguyen]

Hey guys,

A client brought a deal to me where they are the owner of the building and the tenant is buying it from them. All then needed me to do was fill out a purchase contract, set up a title company, coordinate with all parties including buyers and pretty much just close it. How do you calculate how much of a fee you charge for that?

When you usually get paid 3% to prospect for the buyer and negotiate, how much do you get paid just to do the closing? I just don't want tto overcharge. ANy advice would be appreciated!~ Thanks

[Joel Owens]

Tony that is not usually what happens.

The tenant and owner get into it,the tenant can't find the financing they want,etc.

You will be doing much more than fill out a contract you will be dealing with a host of issues until it actually closes.

What you charge is not up to you but the broker you hold your license with.If you are the broker then you can set whatever fee you want in writing.

You would need to be very specific and spell out duties that you will perform and not perform for the set fee.

The key is if you accept a small amount and the tenant falls out of the deal or the tenant needs to bring in a partner to close it instead of just them a bunch of more work happens real quick.

I would fully analyze if the buyers have approved funding and all contract terms are agreed to they just need to be put in writing.If that is the case why have they not just used a commercial attorney??

Got to be some missing pieces here.