Who pays commission?

[Paul Khazansky]

When you are closing on a purchase of an apartment complex, who generally pays the broker's commission - the seller, or the buyer is expected to cover some of the cost as well? I realize it can be done both ways, but what seems to be the accepted way here?

[Tom Goans]

The person/company that hired the real estate agent generally pays the real estate commission. This can be negotiable. In some contracts, it is mentioned who pays.

[Matt Cariello]

In Wisconsin it is common that the SELLER pays the full commission. It's set at 6% and the tenant rep broker gets 3 and the sellers broker gets 3. Seems to work out fine and this is what happens 99% of the time.

Hope this helps

[Andrea M.]

Commissions in my area are typically 6% (sometimes less) , with 3% to the listing and 3% to the seller, which is usually deducted from the sale of the property. Whatever the negotiated commissions are is usually split 1/2 & 1/2 or is noted on the listing if it is a flat fee. Not sure if commercial sales are the same.

[Anthony Palmiotto]

I agree with the above posts. Deals up to around 3-4 million usually include a full 6% fee, with that being split 50/50 between the two brokers. Deals larger than that usually will have a reduced commission...all the way down to maybe a 1% commission on a 25 million dollar deal.