Zoning and Agent commissions

[Sumana Potluru]

Hi All, i'm new to the forums and real estate investing. I'm looking for an RV and boat storage to invest in, but, can't find any in the Hampton roads (VA) area. I reached out to a broker and he says that he charges 10% commission (paid by seller but if doesn't pay, I'll have to). And zoning change might take 6months to 1yr in Chesapeake.

1. IMO that’s outrageous on the commission. Is this normal? 

2. Also, does anyone have experience with zoning land for storage purposes? 

3. Are M1 (light industrial), B2 (General business), MULTI (Multipurpose) zones lands, a good start for resining purposes?

[Brian Van Pelt]

@Sumana Potluru

1. IMO that’s outrageous on the commission. Is this normal?
    . you are paying for an expert in Commercial Marine properties, which is a rare agent indeed. It similar as the difference between a general medical practitioner and a brain surgeon . I work with Residential and Commercial property. You would not believe the number of times a Residential realtor has tried and failed to close a commercial property because they did not understand the zoning and environmental issues involved. Commissions of 8 to 10% are normal especially if you want a Broker to search for hard to find properties, its very labor intensive. You are fortunate he did not ask for a non refundable retainer to approach prospective sellers. And yeas if the Property Owner is approached to sell his property, the Buyer usually pays the commission. The only thing harder to find then a Marine property is Aviation.

Do you still think a Buyer paid commission is too high ? if so what would you pay for expert advice or should agents work for free ?

2. Also, does anyone have experience with zoning land for storage purposes?
   . Your local zoning board will tell you what zoning classifications for storage are and a broker can search by those classifications.

3. Are M1 (light industrial), B2 (General business), MULTI (Multipurpose) zones lands, a good start for resining purposes?

It depends on what your ultimate goal is.