Pricing and Costs of Real Estate Brokerage Firms
Commercial brokerage firms help businesses buy and sell commercial properties at the right priceCommercial real estate brokerage firms have the experience, knowledge and skills to help your company purchase or sell business space at the most competitive price. Commercial real estate brokers are trained and licensed to assist business owners in buying, selling, renting or leasing commercial properties. Commercial brokerage firms assist business owners in purchasing or selling several types of commercial space, including including office buildings, hotels, apartments, retail, hospitality, shopping centers, industrial properties or even land.
Because commercial transactions require special expertise, it benefits your business to hire a commercial real estate finance broker with industry knowledge, experience and professional negotiating skills. Before your hire a real estate brokerage firm, do some research and evaluate the pricing and costs of real estate brokerage firms:
1. How much should your business expect to pay real estate brokerage companies for their services in helping to purchase or sell a commercial property?
2. How much should your business budget for property management fees for real estate broker firms?
3. What additional or hidden fees are involved in commercial real estate brokerage services?
Select real estate brokers with competitive commission fees on commercial sale transactions
Choose real estate brokers with negotiable property management feesLeasing commissions for commercial real estate brokerage firms are generally five or six percent of the lease value, which is calculated as monthly rent plus terms of the lease. However, some property management fees can be as high as ten percent of the gross lease amounts. Leasing commissions are typically negotiable, so work to the get the best deal possible for your business.
Calculate all hidden fees involved in your commercial real estate brokerage firm transactionIn addition to commissions, there are several associated real estate brokerage firm transaction costs. Expect to pay additional costs for application or due diligence, broker retainers, credit reports, appraisals, lender points and closing costs. Reputable real estate brokers will disclose all upfront costs and closing fees.
- Be sure to get all real estate brokerage firm fee agreements in writing. Before signing any paperwork, review all contracts with a lawyer who specializes in commercial real estate transactions.
Copyright © 2013 Business.com, Inc. All Rights Reserved.