What does it cost to sell your Multifamily?

92398671 (Mobile)We are often asked the question, “what does it cost to sell my Multifamily?” While, real estate commissions are part of the equation, there are several other costs you need to be aware of.  A typical sale cost for an owner will include Broker Commission, Tax Stamps, Mortgage discharge fees, and Attorney fees.  The Tax Stamps, mortgage discharge fee, and attorney fees are fairly standard costs, however the commission is your largest and most variable cost so that’s what I will focus on.

Brokerage Commission:

There is no set rate for a brokerage commission, it’s all negotiable, however there are industry standards.  Currently, in the Boston Marketplace, average total commissions are just over 5%. Keep in mind that this is the total commission which is typically split equally between the buyer’s and seller’s agent.  The average commission holds true for properties in value up to about $3mm dollars in value and then things begin to change.  When selling larger properties, there tends to be an inverse relationship with the commission percentage.  The actual percentage of sale charged as the commission is completely negotiable between the seller and seller’s agent and is directly dependent on the type of property and location.  For example, it would not be uncommon for a $5mm dollar A-grade asset in downtown Boston to sell for a commission rate of 3% total. On the other hand, the same priced asset, in poor condition, in a secondary market, would still demand a larger commission of 4 or 5 %.  Why the difference? Well it really comes down to exposure and incentive. While all properties listed by Charlesgate Multifamily receive our full-fledged marketing efforts, cooperating agents are still a vital piece of the puzzle and often times they need to be further incentivized to bring their clients out of their normal comfort zone.  So if you have a property outside of the city and you are trying to attract maximum exposure and interest, a great way to do that is to offer a higher commission thus incentivization more brokers to look at the deal, educate themselves on this new market, and in turn  sell their clients on your property.

 

Talk to Bobby And Joe about Multifamily Investment





Tags: , , , , , , ,

Trackbacks/Pingbacks

  1. Costs to Selling Your Multifamily Property - Charlesgate Realty - May 20, 2013

    […] Read the entire article. […]

  2. When to Renovate and How to Select a Contractor - Charlesgate Realty - July 21, 2013

    […] the market analysis, determined your property is in need of renovations, you’re OK with the payback period – what’s next? The calculations you used to get here should have had you obtaining bids from […]

  3. astrophil archspirit baldachin - December 9, 2013

    share some trade secrets, insider tips, and

    offer expert advice when and as needed. talk to your readers. aside from loading your posts with amazing information, it’s also important to make them engaging and interesting to read. write as if you’re directly talking to your audience. give them

  4. roland - December 22, 2013

    .

    спс!

  5. glenn - January 18, 2014

    .

    tnx for info!!

  6. Mathew - January 18, 2014

    .

    ñýíêñ çà èíôó!!

  7. Wayne - January 18, 2014

    .

    tnx for info.

  8. gordon - January 18, 2014

    .

    tnx for info!

  9. wayne - January 18, 2014

    .

    hello!!

  10. darrell - January 19, 2014

    .

    áëàãîäàðñòâóþ.

  11. Manuel - January 19, 2014

    .

    ñïàñèáî çà èíôó.

  12. Jacob - January 19, 2014

    .

    ñïàñèáî çà èíôó.

  13. don - January 19, 2014

    .

    thanks!

  14. Darrell - January 19, 2014

    .

    tnx!

  15. Wayne - January 19, 2014

    .

    thanks for information!

  16. andrew - January 19, 2014

    .

    ñïñ.

  17. leo - January 19, 2014

    .

    áëàãîäàðåí!

  18. Duane - January 19, 2014

    .

    ñïñ çà èíôó!!

  19. Roger - January 19, 2014

    .

    good!!

  20. dale - January 19, 2014

    .

    tnx!!

  21. Ian - January 19, 2014

    .

    áëàãîäàðåí!!

  22. Christian - January 19, 2014

    .

    tnx for info!!

  23. alan - January 19, 2014

    .

    áëàãîäàðåí!!

  24. jared - January 19, 2014

    .

    thanks.

  25. max - January 20, 2014

    .

    tnx for info!

  26. Glen - January 20, 2014

    .

    ñïñ çà èíôó!

  27. gabriel - January 20, 2014

    .

    ñïñ!

  28. Ernesto - January 20, 2014

    .

    tnx!!

  29. terrance - January 20, 2014

    .

    áëàãîäàðñòâóþ!!

  30. seth - January 20, 2014

    .

    good info!

Leave a Reply