I am writing a contract for the first time on a commercial listing under $1,000,000. What is a reasonable fee to ask for. Property is in TX.

I'd go for 5.

That really depends on your area. In some areas commercial is going as high as 10 and as low as 5 in others.

Thanks so much. I can work with that.

Ask for a 6/10. 6% if you sell it, 10% if co-broke.

Scott

To add to the post...I'd also like to know what the commissions are for commercial leases...no matter how long thelease is for. It's not a land-lease.

I charge 10% commission on a sale and first month rent on a lease.

ky realtor, who do you charge for the lease preparation? The buyer or the landlord?

Jeff,
The attorneys do the leases. Usually the leasor has their standard lease for that property. The leasee then takes it to their attorney and changes are made and it then goes to the leasor's attorney and back and forth till it is accepted by both parties.

Thanks Paul. I recently sold a restaurant. My broker came with me to meet the landlord on behalf of my client. We talked about the lease for my client and the broker asked the landlord "do you want to prepare the lease of would you rather have us do it?" The landlord told us to prepare it. We wrote it up with the terms he wanted, got his approval and had the buyers agree and sign it.


We charged the landlord a fee for prepartion ($500us). If we would have asked for first month's rent, that would have came to $3,500. Is that how much an attorney would have charged? Seems a little high....

I should have said that the landlord was NOT the seller. He was not a party to the escrow, so we could not charge him through escrow. We charged the buyers the money in escrow, then had them credited back through a rent reduction from the landlord (written in the lease agreement).

Just curious as to who normally pays and what that is around the country/world.

Regarding leases again, this is a long term, possibly 99 year lease...how do I get a commission on this?
thanks