RE Transactions and Fees

[Shawn Fyffe]

Hey All,

To preface this post, I would like tot say that I am still fairly new to the real estate scene and all of its nuances; so, please excuse my ignorance.

When scouting for a new multi family apartment building, I noticed a transaction fee of some percent.

It’s always either 1% or 5% - on TenX Commercial - with another number in parentheses. I.e., this multi family apartment complex is taking the best offer, and they have a transaction fee of 1% ($37.5k) listed.

Does this then mean that if they don’t receive a bid of $3.75mil or more, than they won’t sell? (As 1% of $3.75mil is $37.5k)

The transaction period as a whole seems staggering at first but I’m eager to chip away at that notion, bit by bit.

- SF